Borusan Mannesmann Boru Yatırım Holding

Borusan Group and Salzgitter Mannesmann GMBH merged their welded steel pipe investments in Turkey under Borusan Mannesmann Boru Yatırım Holding A.Ş. in 1998.

Borusan Group and Salzgitter Mannesmann GMBH merged their welded steel pipe investments in Turkey under Borusan Mannesmann Boru Yatırım Holding A.Ş. in 1998. The Company holds 73.48% of the shares in Borusan Mannesmann Boru San. ve Tic. A.Ş.

Borusan Mannesmann

Borusan Mannesmann is Turkey’s market leader in the high value-added products, while ranking among the top steel pipe manufacturers in Europe and the US.

With the pioneering role in the Turkish steel pipe industry, Borusan Mannesmann steers the development of the sector as well as continues creating value for stakeholders by investing in health & safety, people-oriented success, digital transformation, innovation and globalization.

Strategic Positioning

Borusan Mannesmann, a globally recognized leader steel pipe and complementary solutions provider focusing on high value add products with a production footprint in its major markets, positions itself as the leader of the high value-added products in Turkish market as well as one of the leading producers in Europe and USA. The Company’s competitive advantages are as follows:

A profitable growth strategy of investing in high value-added products in target markets;
Global competitive power attained by channeling approx. 75% of prime quality sales tonnage to global markets;
Ability of garnering three-fourths of prime quality product turnover from high value-added products;
A sustainable and profitable business model for large diameter spirally-welded line pipes in high value-added markets;
Aiming to be North America’s most profitable and most preferred player in high value-added products in the drilling and well pipes market;
Leader in special pipes for the automotive sector in Turkey; and aiming to be one of the top three manufacturers in Europe;
Digitalized business processes that provide efficiency increasing solutions and competitive edge in operations;
An investment strategy focusing on high value-added products and processes to meet customers’ unfulfilled expectations with fast, innovative and value-adding solutions;
A penetration strategy for niche and new markets while maintaining leadership in existing markets by pursuing a strategy focused on innovative products and new business models.

Successful Financial and Operational Results

Borusan Mannesmann’s prime product sales increased by 12% year-over-year, reaching 833,000 tons in 2018 (2017: 742,000 tons). In parallel with increasing sales, the gross profitability of the Company rose by 15%, significantly driven by the sales of high value-added pipes. As a global player, the Company attained around 75% of its prime product sales from global markets in 2018, while maintaining its steady growth in the global markets.

Borusan Mannesmann increased high value-added pipe sales, specifically, pressure, special and spiral pipes, by 22% compared to the previous year. The turnover generated from the sales of these pipes reached a share of 80% in the total prime product sales, with gross profitability increasing year-over-year by 17%. Standard pipe sales rose by 3% compared to the previous year. The turnover and profitability achieved with the sales of these pipes increased as well.

Sales tonnage of high value-added drilling and well pipes grew by 6% year-over-year as the North American market continued to recover. These pipes delivered 24% more profitability in the same period. Another high value-added product supplied for the automotive sector, was also realized at satisfactory levels. The turnover generated from the sales to the automotive sector rose by 8% compared to the previous year.

Borusan Mannesmann has recorded USD 948.9 million turnover with 833.000 tons of prime product sales in 2018.

Shipments of The Natural Gas Pipeline Tender in US, which was granted in the last quarter of 2017 were completed.

Borusan Mannesmann achieved a phenomenal success, winning the pipeline supply contract for the 368-km-long natural gas pipeline to be built in Texas. The project with a contract value of USD 173 million is the largest-ever tender awarded to the Company and all pipes were produced at outstanding quality standards in Gemlik Plant, which has the world’s latest spiral pipe manufacturing technology. The shipments were completed in the first quarter of 2019, as planned, and Borusan Mannesmann once again demonstrated its leading position among steel pipe manufacturers in the global market with this project.

The USD 75 million investment plan proceeds in accordance with its planned schedule and budget

Following the approval of a fixed asset investment plan of USD 75 million in the last quarter of 2017, which intends to generate sustainable competitive edge and accelerated growth in the company’s core growth areas, namely automotive sector and high value added standard pipe segments, the first phase of the investment plan that aims to enhance the welded steel pipe production capacity of the Halkalı Plant was completed in line with the planned budget and time frame in 2018. Upon the establishment of the integrated production line equipped with latest technologies, the required quality and productivity tests were completed successfully, and commercial production commenced.

Ongoing studies at the Halkalı and Gemlik plants involving the other stages of the investment plan proceed in accordance with the planned time frame. The Company continues the investments with determination and firm steps, adapting to changes in competition and the economy.

Turnover driven by innovation increased to 18% of the consolidated prime sales revenue

Adopting a growth strategy focused on high value-added products, Borusan Mannesmann takes forward the contribution of newly-developed products and services every year. The share of the revenues generated from innovation reached 18% of the consolidated prime sales revenue in 2018. Moreover, a major portion of Lean 6 Sigma projects realized throughout the year intended to build customer satisfaction and loyalty by developing products and services and reach the customers directly.

The Company was granted numerous awards in 2018.

In March 2018, Borusan Mannesmann came in first in the Spirally Welded Pipe Exports category and ranked second in the Longitudinally Welded Pipe Exports category, as part of the Stars of Steel Exports Ceremony, held by the Steel Exporters Association, which recognizes companies with the highest volume of exports in 2017.
As part of the ‘Energy Efficiency in Industry Projects’ Contest, organized by the Ministry of Energy and Natural Resources, Borusan Mannesmann Boru ranked first in the sub-sector of the main metal industry by reducing energy consumption with an average of 54.5% during the last three years.
The “Borusan Mannesmann Augmented Reality OHS R&D Project,” carried out under TÜSİAD’s Accelerated Program for Digital Transformation in Industry, was awarded by the TÜSİAD High Consultative Council, as part of TÜSİAD’s ‘Success Stories in Digital Transformation in Industry’.
In the Global 100 Awards held for the second time in 2018 by Platin, a prestigious business publication, Borusan Mannesmann won the Industry 4.0 Sector Award in the Metal category. The Global 100 Awards are granted according to the results of a study conducted in collaboration with Platin and independent market research company Ipsos, and based on balance sheet data on Borsa Istanbul and ISO-500 2017 data.
Borusan Mannesmann won three awards in the “Golden Glove” and “Golden Suggestion” categories of the 2018 OHS Contest held by the Turkish Employers Association of Metal Industries (MESS).

Borusan Mannesmann won three awards in the “Golden Glove” and “Golden Suggestion” categories of the 2018 OHS Contest held by the Turkish Employers Association of Metal Industries (MESS).

Company Profile

Borusan Mannesmann

Operational Information

Prime Product Sales: 833,000 tons
Prime Product Total Revenue: USD 949 million
Prime Product Gross Profitability: USD 157 million
Investments: USD 43 million

Production

Manufactures 4,000 types of pipe, with diameters ranging from 4.6 mm to 3.048 mm and wall thickness from 0.7 mm to 25.4 mm.
Produces water pipes, general use pipes, natural gas and petroleum line pipes, industrial pipes and profiles, construction pipes, drilling pipes, boiler pipes, and spirally welded pipes.
Borusan Mannesmann is the only European producer of large-diameter petroleum and natural gas pipes. The Company manufactures spiral welded steel pipes with exterior diameters ranging from 508 mm to 3,048 mm, for water, natural gas and petroleum lines. The Company has the capacity to match customers’ special requests for PE, FBE, PP, Epoxy and concrete-covered pipe types.

Manufacturing Capacity

Annual production capacity of 1.1 million tons, comprised of about 750,000 tons of longitudinally welded and 300,000 tons of spiral welded steel pipe.

Sectors Served

A wide product range in longitudinally welded steel pipe, backed by high-quality service focused on the construction, energy and automotive sectors.
Spiral welded steel pipe solutions focused on domestic and foreign infrastructure projects for water, petroleum and natural gas lines and construction industry.

Service Locations