Posted on 31 May 2023
Turkish steelmaker Tosyali and United Arab Emirates' largest producer, Emirates Steel Arkan (ESA), are in final-stage negotiations for a joint hot strip mill project in UAE, informed sources tell Kallanish.
Tosyali senior official Mete Sahin has been visiting UAE for some time and is expected to visit Abu Dhabi, where ESA is located, next week.
"The negotiations between the two companies have matured, and the final investment decision is expected to be met soon and announced," a source not willing to be identified tells Kallanish. "A delegation from both parties visited together potential HRC buyers [tubemakers, re-rollers] for a market survey in UAE in May."
Apart from Turkiye, Tosyali operates in Algeria and has investment plans in Senegal and Angola through its subsidiaries. On the other hand, ESA has been mulling its Phase-3 hot strip mill investment for some time. The firm is also likely to invest in upstream capacity together with a Japanese steelmaker.
Last year, ESA partnered with ITOCHU Corporation and JFE Steel Corporation, a subsidiary of JFE Holdings, to consider the construction of a ferrous raw material production facility in Abu Dhabi. This would become an integral part of a global low-carbon-emission iron supply chain.
"Tosyali chairman Fuat Tosyali has been mulling an investment in UAE for some time,” says a source familiar with the issue. "The group founded a company in UAE last year that is mainly used for feedstock (billet) imports to its facilities in Turkiye."
Last month, ESA announced the company's intention to acquire a stake in German conglomerate thyssenkrupp AG's steel unit (see Kallanish passim). The move was considered a strategic decision for flats investment and exports from UAE.
Neither Tosyali nor ESA replied to request for comment before deadline.
Source:Kallanish
