New hot strip mill in Gemlik (Turkey)

ArcelorMittal and Borusan, one of Turkey’s leading steel producers, yesterday announced a 50/50 joint venture partnership which will see a $500 million investment in the construction of a new hot strip mill in Gemlik (Turkey).

The mill, which will be located in Turkey next to ArcelorMittal and Borusan’s jointly operated Borçelik plant in Gemlik, on the Marmara sea coast, is planned to come online in the first half of 2010 with a capacity of 4.8 million tonnes. Slabs for this hot strip mill will mainly be sourced from ArcelorMittal, which will ensure a supply of high quality products for the booming Turkish steel market. According to Michel Wurth, ArcelorMittal GMB member in charge of Flat Carbon Europe, the Turkish steel market is expected to grow at a rate of at least 6% per year over the next ten years.

ArcelorMittal has been present on the Turkish market for more than 15 years, with, in addition to its Borçelik cold rolling and galvanising joint venture, businesses in the packaging, distribution, steel service centres and stainless segments.