Yongjin to Build $257M Stainless Steel Plant in Türkiye
Yongjin Technology Group, one of China’s top producers of stainless steel, has announced plans to invest a substantial $257 million in the development of a new manufacturing facility in Türkiye. This strategic move, undertaken in partnership with two other Chinese companies, will establish a plant in the Yalova Machinery Specialized Organized Industrial Zone, a rapidly growing industrial hub in northwestern Türkiye.
Project Overview
The proposed facility, which will produce 400,000 metric tons of cold-rolled stainless steel sheets and strips each year, is designed to cater to both high-end and general-purpose markets. The production will be split between:
• 80,000 metric tons of premium stainless steel, which will be produced on one of the two production lines.
• 320,000 metric tons aimed at broader industrial applications.
The plant is expected to be fully operational within 24 months, marking a significant expansion for Yongjin Technology Group, which already operates several facilities in China and Vietnam.
Strategic Location and Market Access
The selection of Türkiye as the plant’s location highlights the country’s strategic position as a manufacturing and export hub between Europe and Asia. Türkiye’s access to the European Union market is a critical advantage for Yongjin, particularly through Türkiye’s customs union with the EU, which allows tariff-free access to European markets. The demand for high-quality stainless steel in industries such as automotive, home appliances, medical equipment, and construction is growing, making the EU a key market for the new plant’s output.
By establishing a manufacturing facility in Türkiye, Yongjin will benefit from:
• Lower logistics costs.
• Stronger supply chain resilience amidst global trade challenges.
• Enhanced competitiveness in Europe.
Joint Venture and Investment Structure
The development of the plant will be overseen by a joint venture led by Yongjin Technology Group, which will hold an 80% majority stake in the new facility. The other two Chinese companies involved in the venture will hold minority stakes, 15% and 5%, respectively. This collaboration signifies not only Yongjin's commitment to international expansion but also the strengthening of ties between China and Türkiye in the steel production sector.
Economic and Technological Impacts on Türkiye
The investment will have a significant positive impact on Türkiye’s economy, particularly in:
• Job creation: The new plant is expected to provide hundreds of local jobs in the region.
• Technology transfer: As a high-tech manufacturing facility, the plant will bring advanced production techniques to Türkiye.
• Reduced import reliance: The facility will help reduce Türkiye’s reliance on imported stainless steel by providing local production.
Türkiye’s government has been actively encouraging foreign investment in high-tech and value-added industries, aiming to raise its share of global foreign direct investment (FDI) to 1.5% by 2028. Yongjin’s project aligns with this goal and could serve as a catalyst for further international investments in Türkiye’s manufacturing sector.
Yongjin’s Growing Global Footprint
Yongjin Technology Group has become a key player in the global stainless steel industry. In 2023 alone, the company produced over 2.8 million metric tons of stainless steel, with international sales accounting for over 10% of its total revenue. Arçelik A.Ş., a prominent Turkish multinational and manufacturer of household appliances such as Beko and Grundig, is one of the company's major global clients.
Yongjin’s presence is already felt in China and Vietnam, where it operates multiple factories. The planned expansion into Thailand further underscores the company’s ambitions to evolve from a leading Chinese manufacturer to a global powerhouse in the stainless steel market.
Key Takeaways:
• Yongjin Technology Group is investing $257 million to build a stainless steel plant in Yalova, Türkiye, with a production capacity of 400,000 metric tons annually.
• The plant will produce cold-rolled stainless steel sheets and strips, with 80,000 metric tons dedicated to high-end products and 320,000 metric tons for broader industrial applications.
• Türkiye's strategic location and customs union with the EU offer Yongjin access to European markets, increasing its competitiveness and reducing logistics costs.
• Yongjin will hold an 80% majority stake in the joint venture, with two other Chinese partners holding minority stakes.
• The plant will create hundreds of local jobs, promote technology transfer, and reduce import reliance for stainless steel in Türkiye.
• The facility aligns with Türkiye’s goal to attract more foreign investment in high-tech industries and boost its FDI share by 2028.
• Yongjin Technology Group is expanding its global footprint, having already established factories in China, Vietnam, and Thailand, with a growing portfolio of international clients like Arçelik A.Ş.
