Erdemir's Strong 2024 Performance: A 19% Boost in Steel Production
In 2024, Erdemir, Turkey’s largest integrated producer of flat and long products, marked a significant milestone in its operational growth. The company, which is part of OYAK Mining Metallurgy, reported a 19% increase in steel production year-on-year, reaching a total of 8.5 million metric tons. This impressive boost in production was largely driven by high capacity utilization, which has been central to Erdemir’s strategy of increasing output and improving operational efficiency.
Steel production at Erdemir's Ereğli facility rose by 15.2% y/y, totaling 3.2 million metric tons, while the Iskenderun facility showed even stronger growth with a 21.5% y/y increase, reaching 5.3 million metric tons. These gains highlight the company’s continued expansion and commitment to meeting both domestic and international demand for high-quality steel products.
Investments Driving Future Growth
In 2024, Erdemir made significant investments totaling $1.07 billion, a 9.5% increase compared to the previous year, when the company invested $977 million. These investments were allocated to various projects aimed at boosting productivity and improving infrastructure. Notably, Erdemir focused on power distribution systems, upgrading the turbo charger No. 6, and structural improvements to the port dock at its plants. These enhancements are designed to ensure the company remains competitive and capable of handling increased production demands in the future.
Flat and Long Product Sales Performance
Despite the surge in production, Erdemir saw mixed results in sales figures for flat and long products in 2024. Sales of flat products amounted to 7.1 million metric tons, with domestic sales accounting for 5.6 million metric tons — a 6.1% decline year-on-year. This drop in domestic demand for flat products suggests a slowdown in certain sectors of the Turkish market, despite overall growth in production.
On the other hand, Erdemir witnessed a robust increase in sales of long products, which rose by 47.5% y/y, reaching 957,000 metric tons. The majority of these sales (943,000 metric tons) were within the domestic market, reflecting strong demand for long products in Turkey.
Export and New Market Expansion
A key highlight of Erdemir’s performance in 2024 was its strong export figures. The company successfully exported 1.54 million metric tons of rolled products. In addition, Erdemir expanded its customer base, adding 68 new customers to its order book. This expansion is crucial for diversifying its market reach and securing more international contracts.
Long-term Environmental Transformation Program
Looking towards the future, Erdemir is not just focused on short-term growth but is also committed to sustainability. As part of its broader strategy, the company has embarked on a $3.2 billion environmental transformation program, which will span until 2030. In 2024, $1 billion of this amount was invested to improve the company’s environmental footprint.
Key initiatives in the program include the introduction of hydrogen technologies at Blast Furnace No. 1, a move that aims to reduce carbon emissions and enhance the sustainability of the company’s production processes. Additionally, Erdemir launched a pilot pyrolysis plant with an annual capacity of 7,000 metric tons of biochar, a sustainable alternative to coal as a fuel source. In early 2025, Erdemir is set to launch a new coke oven battery with a capacity of 800,000 metric tons per year, further enhancing its capacity to meet steel production demand.
Conclusion: Resilient Growth and Sustainability Commitment
Erdemir’s 2024 performance demonstrates the company’s ability to expand production and innovate despite challenging market conditions. With substantial investments in infrastructure and a forward-looking environmental transformation program, Erdemir is well-positioned to maintain its leadership in the Turkish steel industry while contributing to a sustainable future for the sector.
