MMK, Koç Metalurji in southern Turkey resume steel production after earthquakes

Turkish steel producers MMK Metalurji and Koç Metalurji have resumed steel production following the devastating earthquakes that hit the country on February 6, the companies said on Monday February 20.
A 7.7-magnitude earthquake struck the Pazarcik district of Kahramanmaras province early on February 6, which was followed by a 7.6-magnitude quake centered on Kahramanmaras’ Elbistan district. Several other provinces were also affected, including Adana, Adiyaman, Diyarbakir, Gaziantep, Hatay, Kilis, Malatya, Iskenderun, Osmaniye and Sanliurfa.

Steel mills in the region stopped production following the disaster.

About one third of Turkey’s total steel production capacity is located in the region affected by the earthquakes.

Flat steel producer MMK Metalurji, which is located in the Dörtyol province of Hatay and has crude steel capacity of 2.3 million tonnes per year, has restarted production, the company said on Monday.

The company produces hot-rolled coil, cold-rolled coil, hot-dipped galvanized coil and color-coated coil.

“At the first stage, the work of a continuous pickling unit and a reversing mill has been started. Their products should ensure the full capacity utilization of the MMK Group plant in Dilovasi, Kocaeli, with a continuous hot-dip galvanizing unit and a polymer coating unit,” the company said.

“At the same time, with the commissioning of the first production lines, specialists will carry out additional reinforcement of various structures at the facility and preparations for the launch of other units of the complex. The MMK Dortyol port has been operating at full capacity since last week,” the company added.

Meanwhile, Koç Metalurji, located in Osmaniye in southern Turkey, resumed trial production on February 19 and was planning to start steel production on a 12-hour-per-day shift by February 20, a company executive told Fastmarkets.

The steel producer has 1.2-million-tpy crude steel capacity and produces rebar.

Other mills in the region had not announced plans to resume production at the time of publication.

On Friday February 17, Isdemir, located in Islenderun, said it was continuing due diligence studies.

“Studies are continuing to determine the financial aspect of the damage caused by the earthquake. It is considered that the amount of the damage is not at a level that will significantly affect the financial statements of our company,” it said on Friday.

“In addition, our company’s damages due to earthquakes are covered by the insurance coverage. Process-based works at the facilities are continuing in order for our company to start production again. It is planned to restart production in a gradual and controlled manner after the mentioned works are completed,” the company said.

Iskenderun port also halted operations following the earthquakes.

Operations are expected to resume at the port in three months’ time, sources in the region told Fastmarkets.

Published by: Serife Durmus, Cem Turken