Tosyalı Holding Expands Steel Production Footprint in Europe and Africa
Tosyalı Holding, one of the largest steel producers globally, is making significant strides in expanding its investments in Europe and Africa. The company, under the leadership of its Chairman Fuat Tosyali, announced these developments at the World Economic Forum in Davos. Tosyalı’s ongoing investments reflect its strategic focus on becoming a dominant player in the global steel market, with a commitment to sustainability and localization.
Sustainability and Energy Focus in Africa
For the past 30 years, Tosyalı Holding has been steadily increasing its investments in Africa, with a particular focus on sustainability. Fuat Tosyali emphasized that energy and resource management are central to their operations in the continent. Africa, with its diverse energy-rich countries and abundant natural resources, presents numerous opportunities for Tosyalı to expand its operations in a manner that respects sustainable development goals.
"The main rule of sustainable development is energy first, and then the market. There are 52 countries in Africa, some of which dominate the energy sector, and some of which dominate natural resources," Tosyali remarked. "We are steel producers, and the issue we are concerned about is to ensure sustainability."
Tosyalı’s efforts to ensure sustainable production are evident in their projects in Algeria, Libya, Senegal, and Angola. These regions offer promising opportunities for localizing production and reducing carbon footprints while still meeting growing global demand for steel.
Steel Dominance in the Mediterranean Basin
Tosyalı’s ambitions are not limited to Africa alone. The company is a dominant player in the Mediterranean steel market, particularly with its investments in Iskenderun, Turkey. Tosyali also highlighted the company’s expansion in regions like Algeria and Libya, where it is making headway in green steel production using direct reduced iron (DRI) technology. These moves align with Tosyalı’s long-term goals of boosting its presence in key regions of the global steel market.
New Acquisition Plans in Europe
In addition to its expansion in Africa, Tosyalı is also negotiating a major acquisition in Europe. The company is looking to make a significant investment of approximately $500 million. This acquisition would help Tosyalı transform raw materials produced in Turkey and Algeria into finished products within Europe. With its steel production capacity already at an impressive level, Tosyalı is looking to further increase its production and meet customer demands across various regions.
"Our steel production capacity has reached a level where we need new investments to deliver it to the end customer. This acquisition will be a major investment in Europe," said Tosyali. This expansion would significantly increase Tosyalı’s presence in the European market, especially in the production of value-added steel products for the construction, automotive, and infrastructure sectors.
Recent Acquisition of Baika Steel Tubular System
As part of its European expansion strategy, Tosyalı acquired Baika Steel Tubular System, a leading Spanish manufacturer of steel pipes. This acquisition, completed in early 2024, strengthens Tosyalı’s position in the European steel pipe market and boosts its global pipe production capacity. The deal allows Tosyalı to diversify its portfolio and become more competitive in the specialty steel product segment.
By acquiring STS, Tosyalı aims to meet the growing demand for high-performance steel pipes, which are used in critical industries such as energy and construction. The acquisition is expected to increase Tosyalı’s market share in Europe and further cement its reputation as a global leader in the steel industry.
Aiming for Global Leadership in Steel Production
One of Tosyalı Holding’s most ambitious goals is to become one of the top 20 largest steel producers in the world within the next five years. Tosyalı is not focusing on becoming a leader in just one type of steel product, but rather on creating a global value chain that spans from mine to final product. This strategy aims to offer customers a wide range of steel products while enhancing operational efficiency and maintaining a commitment to sustainability.
By expanding its steelmaking capacity to 15 million metric tons per year, Tosyalı is positioning itself for greater competitiveness in the global steel market. With facilities in Turkey and abroad, including the recent acquisition of the Bastuğ Metalurji steel plant, the company is well on its way to achieving this ambitious target. In Turkey alone, Tosyalı’s annual steel production is estimated at 8 million metric tons.
Tosyalı’s Strategic Globalization and Local Production
Tosyalı’s global strategy revolves around the idea of localization, leveraging its international network to meet the growing demand for steel products across various regions. The company is focusing on regional production facilities in places like Algeria, Libya, and Senegal, where steel production and resources can be more locally sourced and delivered. This approach minimizes logistics costs, reduces carbon emissions, and aligns with global sustainability goals.
Additionally, Tosyalı is increasingly looking to improve its production processes to further reduce the environmental impact of steelmaking. The company’s green steel initiatives, including its work in Algeria and Libya with direct reduced iron technologies, are designed to make its operations more eco-friendly and efficient.
Ambitious Future in Steelmaking
With its focus on sustainable production, energy efficiency, and global expansion, Tosyalı Holding is poised for continued success in the competitive world of steel production. Its growth trajectory, particularly in Africa and Europe, highlights its ability to adapt to global shifts toward greener manufacturing processes. As Tosyalı continues to expand, its commitment to becoming a top global steel producer will likely play a crucial role in shaping the future of the industry.
The company’s ongoing acquisitions, increasing investments in key regions, and strategic partnerships demonstrate its ambition to lead the way in the global steel sector. With an eye on both local and international markets, Tosyalı is positioning itself as a leader in sustainable steel production and market expansion for years to come.
