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AL OOK FOR IRON-STEEL SECTOR IN TURKEY by HC120520102521

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									A LOOK FOR IRON-
STEEL SECTOR IN
    TURKEY
Muhammet Ali Baştın 2001431005
Eyüphan Özyurt      2001431036
Soner Turhan        2001431034
        IRON-STEEL SECTOR
   Turkey is one of the few countries that possess
    a vast and diverse mineral resource base.
   Excluding resources of oil and coal are about
    4.500 mineral deposits in Turkey.
   The Turkish iron and steel industry was
    dominated by state-owned or partially state-
    owned integrated facilities and dominantly
    private sector electric arc furnace plants
      HISTORY OF IRON-STEEL
             SECTOR
   Turkey’s first steel factory was established in
    1928 for military purposes

   Turkey has 3 integrated plants

   In 2002, the İskenderun Iron and Steel Factory
    was tied to Erdemir
     THE STRUCTURE OF IRON –
          STEEL SECTOR
   The Turkish iron-steel sector has completed its
    infrastructure, capital structure and technology.
    It is highly competitive in the world, both in
    terms of price and quality
   Next to big companies, many small and
    medium-sized enterprises produce iron and
    steel.
The Sector Companies in Turkey
   Iron and steel production was first started in
    Kirikkale, which is now known as MKEK, in 1928
   The first integrated plant, Karabük Iron and Steel
    Works (KARDEMIR) began to operate in Karabük in
    1937
   Eregli Iron and Steel Works (ERDEMIR) started
    production in 1965.
    In 1977, Iskenderun Iron and Steel Works
    (ISDEMIR)
Size and Capacity of Companies
   The production capacity of the Turkish iron
    and steel industry reached to 4.2 million tons
    in 1980
   At present, Turkish steel sector, with its
    around 15 million tons of crude steel
    production and 9.5 million tons of total export,
    ranks in the 15th in the global steel output
                                    Products in Sector
1000 tons                           2002                       2003                       2004
Products               Production      Consump.   Production      Consump.   Production      Consump.

Tinplate               146             234        179             239        220             287
Galvanize              489             637        588             772        904             1016
Cold Rolled            1116            1186       1375            1615       1443            2188

Hot Rolled             2130            3386       2146            3858       1915            3891


Plate                  53              287        46              269        50              391
Other                  65              140        90              129        100             174
Total Flat Steel       3999            5870       4424            6882       4632            7885

Total           Long   11230           6906       12265           7605       13932           8619
        Steel


Seamles Pipe           3               85         3               103        4               142


Grand Total            15232           12861      16692           14590      18568           16646


           www.mesteel.com
                     Other Products
   Steel Products                       Coke Products
    * Blooms                              * Coke Plant Products
    * Billets                             * Ammonium Sulphate, Pressed
    * Beam Blank                          Naphthalane, Tar Paint
   Rolling Mill Products                 * Carbolic Oil, Grude Benzole,
    * Hot Rolled Round Steel (Bars)       Refine Washed Oil
    * Hot Rolled Round Steel              * Crude Tar
    (Deformed Bars)                       Other Products
    * Steel Nip Beams                     * Pig Irons
    * Steel Npu Profiles                  * Granule Slag
    * Equal Angles                        * Oxygen, Nitrogen, Argon
    * GI Profile
    * Rails
    * Billets
       THE CONDUCT OF IRON –
           STEEL SECTOR
   The iron and steel market is
    large and set to grow further
   Turkey was the world’s 13th
    steel producer with a total
    production of 18.3 million
    tonnes in 2003, with an
    impressive growth rate of
    11.1% over 2002
    Foreign Trade Of Iron Steel Sector
   Turkey exports almost half of its total
    production, it meets domestic demand for flat
    products mainly through imports

   Economic crises in Southeast Asia and Russia
    and the recent one in Turkey has had negative
    effects on the sector, exports have recovered
    Foreign Trade Of Iron Steel Sector
   Turkey exports steel products to about 151
    countries and its major export partners are
    USA, Italy, Greece, Israel, UK, Germany and
    the Middle East.
   Turkey's number one steel export partner; the
    US, has currently launched the Bush Plan
    which entails the implementation of new tax
    and tariffs up to 30 percent on steel imports
State Planning Organization (SPO)
       PERFORMANCE OF THE
             SECTOR
   1. Profitability of Sector’s Companies
   2. Growth of Sector’s Companies
   3. Other Ratios about Sector Companies
  Profitability of Sector’s Companies
                    NET PROFIT(2005/6)   Ratio Of Profitability %
     COMPANY
                          YTL                     YTL
EREGLI IR.STE.CO
                        300.172.619               4.49

IZMIR IR. STE.CO
                         8.946.166                3.39

KARDEMİR IR. STE.
                        11.693.804                1.97

TOTAL
                        320.812.589               2.40


FINNET2000
   Growth of Sector’s Companies
                                     Tot Asset in
             Total Assets in 1999
  COMPANY                             (2005/6)      Growth Ratio %
                     YTL
                                         YTL


 EREGLI         629.360.108         6.678.181.758       1077



 IZMIR           91.928.004         264.095.463          287



 KARDEMİR       111.679.568         593.256.776          531


FINNET2000
                 Debt Ratios (2005/6)
             Debt         Short-term        Capital Sufficiency       Long-term
COMPANY
           Ratio(%)   Debt/Total Debt (%)      Ratio( %)          Debt/Total Debt(%)



EREGLİ       46.02           53.46                67.32                  46.54



IZMDC        38.48           76.59                72.21                  23.41



KARDEMİR     77.45           40.97                56.35                  59.03



AVERAGE      84.55           71.14                56.78                  28.86



FINNET2000
      Other Profit Ratios (2005/6)
          Gross
          profit     Net Profit       Cost of       Profit/Capital   MV/    Net Profit 2005-
COMPANY
          Margin     Margin (%)   Sales/Net Sales       Ratio        BV        6/Equity
           (%)



 EREGLİ      16.03     14.74          84.27             6.68         0.63        6.68




 IZMDC       -1.65      4.33          101.65            4.69         0.90        4.69




 KRDMR       11.36      4.72          88.64             3.50         1.48        3.50



FINNET2000
           Price-Earning Ratio,Market
                Value,Book Value
          Net Profit      Paid-in
                                         Equity       MarketValue     Market Value            P/E
Company        year         Capital                                                   MV/BV
                                         YTL               YTL           USD
               2004        YTL




EREGLI    496,189,112   487,872,000   4,542,585,909   4,366,454,400   3,234,410,667    0.96   8.8



IZMDC     12,716,310    62,250,000    189,899,229     195,465,000     144,788,889      1.03   15.3




KRDMR     10,163,825    115,935,970    70,637,582     106,661,092      79,008,216      1.51   10.4



FINNET2000
               CONCLUSION
   Erdemir’s privatisation
   Mortgage Market,will effect the Iron-Steel
    sector positively
   Turkish steel producers are one of the best
    suppliers for the restructuring investments in
    Iraq and Middle East
   The iron and steel industry will continue to
    grow
!!!THANKS FOR YOUR ATTENTION!!!

								
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