DYNAMIC WORKFORCE, INNOVATIVE APPROACH

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 with investments in total USD 530 million in years 1994, 2003 and 2008. Borçelik has three cold-rolling and three hot-dip galvanized lines. As Turkey’s biggest galvanized steel producer, Borçelik offers the highest quality products 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.

Turkey’s Biggest Galvanized Steelmaker, 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 highest quality galvanized steelmaker.

Strategic Positioning

Borçelik has strategically a solid vision which is to become the number one down-stream steel solutions provider for key segments in our territories thru customer proximity, efficiency and innovation. Borçelik’s competitive advantages are as follows:

• Extensive experience and know -how through the being the first private steel maker in Turkey
• Turkey’s biggest galvanized steelmaker, offering the highest quality
• Turkey’s market leader in the hot-dip galvanized steel industry
• Main supplier to leading industrial companies
• 1.5 million tons of production capacity under the Borçelik brand coupled with 500,000 tons of metal processing capacity which provides flexibility and market penetration advantage under steel service center activities with 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, a global leader in the steel sector

Sustainable Financial and Operational Results

As of the end of 2019, Borçelik achieved sales of 1.7 million tons and reached a total export volume of 216,000 tons. Negative impact of USA Section 232 investigation is compensated by various diverse export markets for achieving better results. With its well-known commercial capabilities and a dedicated focus in value-added operations, Borçelik managed to achieve a 15% increase in its profitability results and continued to add value to its stakeholders in 2019. Borçelik performed 13% of Turkey’s cold-rolled and galvanized steel exports in 2019. The Company exported to 32 countries while continuing to extend strong support to the Turkish economy in 2019 as it is the major supplier of leading export brands of Turkey.

Borçelik reached a high capacity utilization rate as in previous years in 2019. The strong export performance of automotive and white goods sectors helped maintain the market share in domestic market sales and also, strong export position of Borçelik in 2019 result in high percentage of utilized capacity.

R&D, innovation and digitalization initiatives continued in 2019 with internal focus on cost reduction, productivity, health and safety and external focus on new products industry 4.0 incentives and enhanced customer service.

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, maintains strong market share performance in 2019 and continued to add new sectors and customers to its sales portfolio.

Innovative Power of Turkish Flat Sector

Innovation, research and development, digitalization studies, and new product developments are core business opportunities in the flat steel sector to create competitive advantage and value-added brand perception.

Borçelik R&D (research and development) had roughly USD 3 million of expenditure in 2019. This corresponds to a 10% increase compared to 2018. Borçelik’s R&D expenditure consists of physical investment in test equipment, prototypes, engineering software purchases, software maintenance costs, consultancy and consumables, all dedicated to R&D projects.

In 2019, Borçelik R&D continued previously started projects and launched new ones. Of these, 13 projects were concluded and closed and 5 new ones were launched. Focusing on quality and value-added projects are the policies of project management. In this regard, the academic contacts and relationships have expanded, as has contact with other R&D centers of Turkish industry stakeholders. The Borçelik R&D test center is also enriched with new testing capabilities, especially on the corrosion side, one of which is the first in Turkey (Svet equipment).

In 2019, 7 projects came from the innovation department and Borçelik made 7% of its sales from these projects. “Galvanoks” was added to Borçelik’s product portfolio in 2019, and with the existing “GalPlus” two new trademarks were offered to the market as part of the innovation initiative.

Four major projects were initiated for strengthening the digitalization initiative of Borçelik. The first was Advance Planning, which aims to create a frictionless supply chain and reviews all processes in purchasing, planning, sales, and delivery. The second was the SAP S4/HANA transition, which aims to have leaner, more efficient and faster processes in sourcing, production and delivery areas. The third was Robotic Process Automation, which aims to automate processes after reviewing the two projects above. Last but not least, was Digimon, which aims to create a predictive maintenance platform in order to reduce breakdowns in production.

One Coil One Sapling

We are presenting one sapling to the nature for each coil we manufacture, because a livable future is possible only with love and respect shown to the green.

Borçelik recorded 538 thousand tons of shipment under the Kerim Çelik brand as of year-end 2019.

As a part of this project, the saplings grown in the greenhouse of 2,000 square meters within the factory complex will be given to nature, and by doing so, the future will be protected. Having given to nature a total of 600,000 saplings over 10 years, Borçelik has already re-forested an area equal to 2% of the total green-field area which has burnt out in the country over the last 10 years.

To the “Give a Breath to Future” tree planting campaign organized by the Turkish Ministry of Agriculture and Forest, we have contributed by planting 5,000 saplings in the memory of 25th Anniversary of our foundation in Borçelik Memorial Forest located in Yalova/Altınova/Havuzdere Village.

Sustainability is the Main Priority

Sustainability is a priority in the steel sector and the sector closely follows the U.N. Sustainable Development Goals. Safety and health, technological developments to reduce the carbon footprint, modernization of processes and social responsibility are major topics in sustainability in the steel sector.

Environmental sustainability is one of the main drivers of Borçelik’s strategy and Borçelik makes responsible decisions that will reduce its negative impact on the environment. Borçelik aims to design and carry out all its activities with the intention of preserving natural resources and using energy efficiently, preventing pollution and leaving a cleaner, livable environment for future generations.

In order to achieve this, Borçelik measures, continually monitors, reports and improves its performance indicators on its environmental footprint. Borçelik carries out many projects and studies every year to improve the efficient use of natural resources in production (water, consumables, etc.), to improve energy efficiency (electricity and natural gas), to reduce its amount of waste, and to increase the use of recycled materials.

Continuous OHS

The Company’s occupational health and safety policy aims to stop unsafe working, continuously improve dangerous situations and create a culture that gives feedback on unsafe practices. Therefore, risk-assessment, hazard hunting, and behavior-based safety management (Number Ten) tools have been implemented for a while. Employees participate in each of these tools. In conclusion, the goal is to continuously improve the safety culture.

In 2019, much training was carried out, in OHS Training, Number Ten Observer and Captain Training, and Corporate Orientation OHS Training in particular.

Borçelik Technical Academy

Borçelik Technical Academy (BTA) was established in 2014 with the initial intention of designing and delivering technical training to Borçelik employees to develop/improve their competencies and hold corporate technical information. BTA has extended these internal training activities beyond the scope of Borçelik employees over time and has focused on the training of potential future employees of Borçelik. As a part of this target, BTA has collaborated with vocational high schools in its region and has been involved in many corporate social responsibility projects. BTA has supported these vocational schools, their students and their trainers with coaching programs, training of trainers programs, common projects, and intangible support programs.

In 2019, Borçelik Technical Academy (BTA) decided to go one step further in these activities to be more active in vocational training and create a new business line through a vocational qualification certification.

Borçelik Technical Academy aims to ensure the creation of a qualified workforce in the country by experience from all sectors in which an active role is taken and to be a training and certification institution that performs all the activities in a reliable, high quality, ethical and legal frame

Borçelik Technical Academy will establish training and certification units in its internal structure with this accreditation process. The communication activities to be conducted on the Borçelik Technical Academy brand are intended to be started by 2020. With this system model to be established, it is aimed to provide a financial contribution to the development of vocational education activities.

Borçelik delivered 1,500 hours of training in 153 sessions under the Borçelik Technical Academy, as part of continuous training for employees.

Borçelik Technical Academy included 80 vocational school students in the coaching and professional training program and delivered 450 hours of voluntary training to 35 volunteering coaches, as part of the Student Development Program.

Borçelik Technical Academy included five 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.

Awards

Borçelik was granted to prestigious awards in 2019 as a result of its achievement.

• According to the results of the “Top 500 Industrial Enterprises of Turkey 2018 Survey” conducted by the Istanbul Chamber of Commerce, the Company climbed from the rank of 22nd in 2017 to 19th in 2018.
• According to the Capital 500 – the Top 500 Companies of Turkey – survey, the Company is excelled to ascend from the 61st to the 58th on the list, and in the Fortune 500 survey published for the 12th time this year, company is excelled to ascend from the 51st to the 44th on the list. Borçelik is going to continue the efforts to further move up the ranks in these very important surveys.
• The project “No Job Too Tough For Women” was awarded a prize in the Corporate Social Responsibility Programs of the Turkish Confederation of Employer Associations this year
• The Company was awarded the second best project prize in the Big Data and Analytics category in the Smart Production Technologies Awards organized by International Data Corporation (IDC), a global technology counseling company.
• Bursa Nilüfer Organized Industrial Zone (NOSAB) and NİLSİAD awarded the Company its prizes for the largest turnover, the highest number of exports, the greatest employment and the support given to women employment
• The Company was recognized by the Bursa Chamber of Commerce and Industry (BTSO) as “Champion of the Bursa Metal Sector” in the “Adding Value to the Economy 2019” awards.
• In the Haier Europe 2019 Suppliers Meeting, organized by Haier, the largest white goods manufacturer in the world, Borçelik was awarded the “Best Industrial Cooperation” prize.