Hasçelik’s €150 Million Melt Shop Investment to Revolutionize Steel Production
Hasçelik, a prominent Turkey-based specialized steel producer, is nearing the completion of a significant milestone in its production capacity. The company has invested €150 million in a new melt shop, which will be established in Bilecik. With production slated to begin in April 2025, this new facility marks a pivotal step in the company’s strategy to enhance both its operational efficiency and environmental sustainability.
Investment Focused on Technological Advancements and Carbon Emissions Reduction
The melt shop investment is a forward-thinking initiative aimed at boosting the company’s overall competitiveness. Adnan Naci Faydasıçok, Chairman of Hasçelik, highlighted that the project would contribute significantly to reducing the company’s carbon emissions. The new production technology is expected to cut emissions by up to five times compared to current processes. This commitment to environmental sustainability aligns with global trends toward greener industrial practices and will support Hasçelik’s position in the increasingly eco-conscious steel market.
In addition to the environmental benefits, the melt shop is projected to enhance Hasçelik’s profitability by increasing sales prices per metric ton by up to 15%. This price increase is expected to result from the improved production process and the company's ability to produce high-quality billets in-house, which it previously had to source from external suppliers.
Increased Independence with In-House Billet Production
The new melt shop will allow Hasçelik to produce its own billets, eliminating the need to rely on external suppliers. Previously, billets were sourced from outside, adding cost to the production process. By bringing billet production in-house, the company not only reduces supply chain dependencies but also gains significant cost advantages. The integration of billet production with the company’s existing hot rolling mill in Kocaeli will result in an efficient, cost-effective operation that strengthens Hasçelik’s ability to meet the growing demand in various industries.
Serving Key Sectors: Automotive, Machinery Manufacturing, Energy, and Engineering
The melt shop will be crucial in supplying high-quality steel to industries that require precise and durable materials, such as automotive, machinery manufacturing, energy, and engineering. These sectors often demand steel with specific properties for high-performance applications, and Hasçelik is positioning itself to meet these needs with state-of-the-art production and the highest industry standards.
The Bilecik melt shop is designed to operate in harmony with Hasçelik’s existing facilities, ensuring smooth integration and maximizing production efficiency. This modernized production line is expected to allow Hasçelik to deliver cutting-edge steel products that meet the specific demands of its diverse customer base.
A Strategic Move for Competitiveness and Innovation
With the addition of the melt shop, Hasçelik is not only reinforcing its production capacity but is also enhancing its global competitiveness. The company is investing in technological innovation that will allow it to offer products with superior quality, all while reducing its environmental impact. As it continues to modernize its operations, Hasçelik is positioning itself as a key player in the steel industry, capable of serving high-demand industries and meeting the needs of global customers.
The new melt shop investment also reflects Turkey’s broader push to modernize its steel sector and increase its competitiveness in the global market. By embracing sustainable production technologies, Hasçelik sets an example for other Turkish steel producers, offering insight into how innovation and environmental responsibility can work together to drive long-term growth.
As Hasçelik moves closer to completing its melt shop project, all eyes will be on the company’s performance and the impact of this large-scale investment on its sales, production efficiency, and environmental goals. The successful launch of the new melt shop will solidify the company’s position as a global leader in the steel industry and offer a competitive edge in both the local and international markets.
