Russia's largest steelmaker Magnitogorsk Iron & Steel Works (MMK) and Atakas Group, one of the leading Turkish mining companies, held a groundbreaking ceremony on March 15 for their new company MMK-ATAKAS Metalurji San.Tic and Liman İsletmeciligi A.S.
The ceremony was held with the participation of minister and deputy prime minister Nazim Ekren many bureucrats, Recep Atakas, politicians and bussinesmen. Recep Atakas, in his speech declared that, with this investment, they are aiming to reduce the flats production deficit and cover the need for the flat product in Turkey which is currently depending on imports. He continued his speech by expreesing his positive views about Isdemir's conversion to flat production under Erdemir Group. He added that MMK-ATAKAS also will be using improved technologies in flats production and by combining their capital and know-how together with MMK, they will endevour to meet the need for value added products in Turkey.
Russia's leading steelmaker MMK CEO V.F Rashnikov mentioned that all the facilities planned by MMK-Atakas are aimed to be fully commisioned by the end of 2010 and Turkey's flat steel consumption will reach 14.7 million mt.
Equipment and machine supplier Danieli CEO Gianpietro Benedetti expressed their happiness to work in the construction of this mill and also added that it is on their priority list that this mill is equiped with the high technology and efficiency for the infrastructure as well as being environment friendly. The value of the contract made between MMK-Atakas and Danieli is $347 million.
It is mentioned that the first reported investment amount $1.1 billion has increased to $1.4 billion and with the development of this project, this amount is likely to reach $1.7 billion.
The construction of the mill will be completed in two stages, as previously announced. Two service centers to come into operation one of which will be in Iskenderun and the other in Istanbul, Gebze are scheduled for end 2008, and first quarter 2009 respectively. Service centers will include cutting and slitting operations.
It is expected that the 1.2 million mt pickling line and 1 million mt cold rolling mill to be based in Iskenderun will start to operate at the last quarter of 2009. Iskenderun facilities of the hot dipped galvanized line with total 900.000 mt capacity, and prepainted line with 400.000 mt total capacity will start production in November 2009 and Istanbul facilities are expected to become operative after three months of the given Iskenderun dates.. Hot rolling mill with the capacity of 2.5 million mt, slab caster and electric arc furnace will start to operate in the last quarter of 2010. Prior to completion of integrated steel mill, the company plans to source feedstock for its Iskenderun and Istanbul facilities from both Russian MMK's plant and international market.