Colakoglu wins privatization tender for Turkish power plant

Colakoglu Metalurji has won the privatization tender for the Gebze Dilovasi Natural Gas Combined Cycle Power Plant by offering the highest bid of Lira 157 million ($18 million), S&P Global Platts learned from a presidential decree published in the country’s official gazette Oct. 14.

With installed power of 253.40 MWe the plant is Turkey’s 74th, and Kocaeli region’s second largest power plant. The plant has the capability of producing 1.8 billion KWh of electricity, which could meet all the electrical energy needs of 506,000 people in their daily lives.

The power plant is expected to meet all of the electricity needs of Colakoglu’s steel production plants in Dilovasi, Gebze. The company could sell the rest of the electricity, as the production capacity of the power plant is high. The company didn’t provide information to Platts Oct. 15 about their future plans for the power plant.

Colakoglu Metalurji’s hot-rolling mill capacity increase project got an environmental impact assessment approval from the Turkish Ministry of Environment and Urbanisation on Jan. 21, as Platts has reported.

The company is targeting to increase its hot-rolled flat steel capacity by around 50% to 4.5 million mt as of the second half of 2022.

Colakoglu already started production of special grades of stainless sheet last year in October, in line with the company’s target of focusing more on value-added steel.

The steelmaker currently has bar output capacity of 1 million mt/year and HRC production capacity of 3 million mt/year.

— Cenk Can