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Kallanish Kallanish

Knowledge matters Knowledge matters

August, 5th 2020

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APR 23
16:22

Tosyali plans further West African steelworks

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Tosyali plans to invest in steelmaking capacity in two West African countries from which it will ship product to the surrounding area, as well as South America. So said chairman Fuat Tosyali in a Forbes interview published on Tosyali’s website.

The Turkish steelmaker already has 4 million tonnes/year rebar and wire rod capacity steelworks in Oran, Algeria, that is fed by a captive 2.5m t/y direct reduced iron and 4m t/y iron ore pellet plant. From here it supplies the West African and European markets, while from its Iskenderun base product is shipped to East Africa.

“Now we are going to invest in two more countries in the west of the continent,” Tosyali is quoted as saying.

The prospective West African plants will produce rebar from iron ore mined and pelletised locally, Tosyali said while declining to reveal which countries were being targeted. There is very little scrap supply in the subject countries.

In describing one of the target countries, the chairman spoke of flat terrains stretching for miles and no lights at night due to zero electricity supply. The other country is now the third fastest-growing economy in Africa, following a bloody war. As industries in each country, such as white goods and automotive, develop they will need more iron and steel products, he adds.

Tosyali’s representatives did not respond to request from Kallanish for comment.

According to reports, Tosyali signed last year a memorandum of understanding with the Senegalese government to establish an integrated steelworks in the African country (see Kallanish passim). This will be in addition to the two new West African projects.

Earlier last year the firm was also understood to be planning to invest in the establishment of steel production capacity in Ethiopia. The producer is also planning to build a 2m t/y crude steel capacity integrated steel plant in southern Turkey's Osmaniye with investment incentives awarded by the government.