Borçelik

Borçelik is Turkey’s first private flat steel producer; ArcelorMittal, the world’s leading integrated steel and mining company, is among its business partners.

Founded as the first private and the second-largest flat steelmaker of Turkey in 1990, Borçelik started its activities in 1994, producing cold-rolled steel. Borçelik increased its production capacity to 1.5 million tons following investments totaling USD 530 million in 1994, 2003 and 2008. Borçelik has three cold-rolling and three hot-dip galvanized lines, and is Turkey’s biggest galvanized steel producer, offering the highest quality with 900,000 tons of galvanized capacity. Borçelik successfully continues its activities under the partnership of Borusan Holding and ArcelorMittal, one of the largest global steelmakers. The Company’s strong market position is based on its dynamic workforce, innovation-oriented approach, continuous investment towards growth and development, and its customer-focused service and quality conception.

Turkey’s Biggest Galvanized Steel Producer, Offering the Highest Quality

The Company has a total production capacity of 1.5 million tons with the Borçelik brand and a metal processing capacity of 500,000 tons with the Kerim Çelik brand, making it Turkey’s biggest galvanized steelmaker, offering the highest quality.

Strategic Positioning

Borçelik has a strategically solid position, as defined by Borusan Holding, its main shareholder, and optimizes its production and sales processes effectively. The Company’s competitive advantages are as follows:

Turkey’s first private flat steel producer
Turkey’s biggest galvanized steel producer, offering the highest quality
Turkey’s market leader in the hot-dip galvanized steel industry
Main supplier to major industrial establishments
1.5 million tons of production capacity under the Borçelik brand coupled with 500,000 tons of metal processing capacity under the Kerim Çelik brand
Kerim Çelik, Turkey’s first steel service center at global standards, with more than 50 years of experience
Strategic partnership with ArcelorMittal, global leader in the steel sector.

Sustainable Financial and Operational Results

The year 2018 was challenging for the Turkish steel sector, due to a rising trend in protectionism across the globe and fluctuations in exchange rates as of the second half of the year. The new trade barriers enacted by the US and the EU for the steel sector had a negative impact on the Turkish steel sector characterized by a surplus in production. Differentiating itself from its peers with strong competitive capabilities, Borçelik demonstrated a robust performance in 2017 to 2018 despite the existing challenges in the market. As of the end of 2018, the Company performed sales of 1.8 million tons, and reached a total export volume of 292,000 tons.

An Export Volume of USD 227 Million for 22 Countries

Despite the rising trend of protectionism in the global steel market, Borçelik performed 19% of Turkey’s cold-rolled and galvanized steel exports in 2018. The Company exported to 22 countries, corresponding to a volume of USD 227 million, while continuing to extend strong support to the Turkish economy in 2018.

Turkey’s first steel service center at global standards

Kerim Çelik, Turkey’s first steel service center at global standards with over 50 years of experience, increased shipments by 10% in 2018 and continued to add new sectors and customers to its sales portfolio.

Innovation, Digitalization and R&D Efforts

Borçelik continued its successful activities in innovation, digitalization and R&D, maintaining its competitive advantage in 2018. The Company enjoyed sustainable achievements in the number of projects, revenue and profitability results as an outcome of the consistent efforts undertaken in this field. Six projects carried out in the third year of R&D projects helped attain a seven-fold increase compared to the first year, and the turnover rose by USD 80 million.

In 2018, Borçelik launched its R&D Center, approved by the Ministry of Science, Industry and Technology, in order to develop next-generation products of the future and conduct Industry 4.0 transformation efforts under a single roof. Having completed R&D Center audits successfully in the first year, the Company established an R&D structure that looks beyond and services with a focus on developing integrated processes, technologies and products. The Borçelik R&D Center collaborates with universities, research centers and scientific institutions such as TÜBİTAK, as well as with customers leading their respective sectors, and aims to contribute to the innovation ecosystem in Turkey. In 2018, 29 R&D projects were undertaken with 74 employees across Borçelik who assumed tasks in R&D projects. Five projects, including one international project, were financed by TÜBİTAK-TEYDEB. In its first year of operation, the Borçelik R&D Center achieved significant results by developing products with European Patent registry. As of the end of 2018, the Center has 11 patents – nine local and two international – and five utility model applications.

New Investments Amounting to USD 8 Million

Other initiatives and achievements of Borçelik in the 2018 operating period are as follows:

Continued to enhance productivity of business processes with an investment of USD 8 million.
Strengthened stakeholder communication by organizing 2,500 customer visits and technical courses.
Recognized by the Bursa Chamber of Commerce and Industry (BTSO) as “Champion of the Bursa Metal Sector” in the BTSO “Adding Value to the Economy 2018” awards.
Ranked 22^nd in Turkey in the ISO 500 Survey and was deemed the “Fourth Largest Industrial Establishment of Bursa” in the survey by the Bursa Chamber of Commerce (BTSO).
Delivered 2,571 hours of training in 344 sessions under the Borçelik Technical Academy, as part of continuous training for employees.
Included 80 vocational school students in the coaching and professional training program and delivered 408 hours of voluntary training to 34 volunteering coaches, as part of the Student Development Program.
Included nine female students from the Metal and Machinery Department of Mimar Sinan Vocational and Technical Anatolian High School under the Coaching Program for Vocational High Schools.
Launched the maker movement together with students in the Responsible Citizenship Module of Vocational School Coaches. Eighteen volunteering coaching students from vocational high schools successfully completed the Maker Training for Trainers. They provided courses to 82 elementary school students aged 11-14, comprising modules such as wood design, 3D models, electronics, robotic coding and STEAM-based leadership modules to help develop algorithmic thinking and production skills and encouraged collective production. 9 trainers in the Vocational High School Coaches Program teaching the Responsible Citizenship Module provided Morse Code training to students in the Bursa Coding Festival, attended by the Borçelik Maker Club. 26 coaching students took part in the Nesin Math Village Summer Camp.
Cultivated 200,000 saplings in the Company greenhouse built within the production facilities as part of the “One Coil One Sapling” project.
The Borçelik Educational Assistance Fund, created by Borçelik employees, granted scholarships to 45 students.
Launched a project aimed at increasing women’s employment in the flat steel industry with the motto “No Job Too Tough for Women.” Successfully completed the mentoring program for on-boarding 26 newly-recruited women.
Created a computer lab and playroom for the opening of the kindergarten at Aydın Acarlar İstiklal Elementary School, with Borusan R&D.
Served the 15^th International Corrosion Symposium, held by the Corrosion Association biannually, as the main sponsor.
Won the “Digital Transformation in Human Resources” award in PERYÖN’s Award Ceremony for ‘HR Projects that Make a Difference’.
Recognized as the “Company that Values Women in Bursa” by BUİKAD.
Deemed worthy of the “Doğan Ersöz Award” by the Board of BUSİAD.
In the Production Sector Technology Awards, organized by International Data Corporation (IDC), a prestigious brand in the global technology sector, the Company won the First Prize in the IOT category and the Second Prize in the Big Data & Analytics category.

In 2019, Borçelik will continue to pursue its corporate vision and tap into its competitive strengths in areas such as customer proximity, productivity and creative analysis in core sectors at target locations. The Company aims to maintain its leading position as the flat steel solution provider.

Total Sales (000 tons)	2014	2015	2016	2017	2018
HDG	742	763	809	909	872
CR	495	487	566	581	582
Other	139	174	175	181	177
PO	58	76	93	153	188
FH	10	6	6	8	7
GLS	10	11	14	18	15
Total	1,454	1,518	1,664	1,850	1,840
Export Sales (000 tons)	2014	2015	2016	2017	2018
Total	169	173	291	404	292

Borçelik enjoyed sustainable achievements in the number of projects, revenue and profitability results as an outcome of the consistent efforts in 2018.

Company Profile

Product Portfolio

Hot-dipped galvanized steel, cold-rolled steel and hot-rolled steel (pickled and oiled), used as industrial raw material.
Production of various grades of steel, including commercial, drawing, extra deep drawing, dual-phase, bake-hardening, rephosphorized, High Strength Low Alloy (HSLA), high-carbon and special alloy, enameling and structural steel.

Manufacturing Capacity

Borçelik

Total production capacity of 1.5 million tons

600,000 tons of cold-rolled steel
900,000 tons of hot-dip galvanized steel

Kerim Çelik

Metal processing capacity of 500,000 tons in total

Bursa Steel Service Center: 340,000 tons
Manisa Steel Service Center: 130,000 tons
Adana Steel Service Center: 30,000 tons

Sectors Served

Borçelik serves the following industries: Household appliances, automotive (main and sub-industries), panel radiator, construction, color coating, pipe & profile, packaging, metal goods and steel service centers.
Kerim Çelik serves the following industries: Automotive sub-industry, household appliances (main and sub-industries), heating, cooling and ventilation, electricity, electronics, lighting, construction, elevator, machinery and spare parts industries, radiator, silo and poultry equipment, furniture and accessory manufacturers, cable and conveying systems, pipe & profile, steel service centers and other sectors.

Service and Manufacturing Center