Hot tests start at MMK Metalurgi

Metalurji operates an electric arc furnace facility with a casting and rolling module, a cold-rolling mill, galvanizing and colour coating lines, as well as two service centres in Iskenderun and Istanbul. The Iskenderun production site also features a seaport that can accommodate ships of up to 100,000 deadweight tonnage and is used to supply raw and input materials to the plant as well as ship products to customers.

The phase one hot testing was halted in 2012 due to unfavourable economic conditions in the Turkish market. Upon completion of tests, however, the complex, intended for the production of hot-rolled coils, will resume its work in full.

The decision to suspend hot-rolled production at MMK Metalurji's site in Iskenderun was based on economic efficiency considerations, according to Viktor Rashnikov, chairman of the MMK board of directors. “At that time, the situation in the Turkish market was characterised by high prices for raw materials and energy resources and low prices for steel products. The current situation allows us to resume operations at the electric arc furnace facility, which is a very important component of our Turkish asset,” he said.

Pavel Shilyaev, CEO of MMK, commented: “We invested about $40 million to restart this production facility. After restarting the hot section and reaching its full capacity, we plan to produce about 2Mt of hot-rolled coils per year, which will allow our Turkish asset to gain a significant increase in EBITDA.”

According to MMK, the phased launch of the electric arc furnace facility with a casting and rolling module at MMK Metalurji’s Iskenderun site implies a gradual increase in production. In total, it is planned that the site will produce 200kt to 260kt of hot-rolled steel in 2021. The unit will reach full capacity in 2022.