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INTRODUCTION

13

ERDEMİR GROUP

2014 ANNUAL REPORT

Erdemir Madencilik San. ve Tic.

A.Ş. (Ermaden)

Divhan A.Ş., which was

established in the Divriği

township in the Sivas province,

was acquired by Ereğli Demir ve

Çelik Fabrikaları T.A.Ş. through

a tender held on April 15, 2004.

Its company title was changed

to Erdemir Madencilik Sanayi ve

Ticaret A.Ş. (Ermaden). Ermaden

owns 9 iron ore field and one

manganese field. The company

accounts for 50% of Turkey’s

iron ore production and meets

20% of the country’s demand

for iron ore. Ermaden is the only

pellet plant of Turkey to meet

the raw material demands of the

iron and steel industry. It also

manufactures by products to

be used for sinter in iron-steel

plants and hematite lump ore,

in addition to the production

of pellet. It aims to produce 3

million tons of pellet through its

Hasançelebi Iron Ore Enriching

Plant investment, in addition

to its existing 1.5 million tons

of pellet capacity and 750

thousand tons of lump ore

production capacity.

Erdemir Mühendislik Yönetim

ve Danışmanlık Hizmetleri A.Ş.

(Erenco)

Erenco, established in 2001,

provides a wide range of

engineering and project

management services from

the planning to the application

of Erdemir Group companies’

investments that are necessary

for them to achieve their targets

for profitability, product range,

and production of quality

products.

Erdemir Romania S.R.L.

Erdemir Romania joined

the Erdemir Group in 2002

produces electric motors, power

transformers, generators and

siliceous flat steel, which is

one of the main inputs for the

transformer industry. The plant,

which is located in Targoviste,

Romania, commands an

important position in Europe

in terms of electrical steels

production. Of the Company’s

production, 15% is used in the

Romanian market and 85% is

exported to European countries.

Erdemir Asia Pacific Pte. Ltd.

Erdemir Group established

“Erdemir Asia Pacific Private

Limited (EAPPL)” through a 100%

owned Erdemir participation in

Singapore to carry out Erdemir

Group’s commercial operations

in the Far East. The company

was established with US$

250 thousand of capital and

commenced operations on

October 1, 2014.

ERDEMİR GROUP CONTINUES ITS OPERATIONS

WITH ITS 7 SUBSIDIARIES AND ADDS VALUE

TO TURKEY’S SUSTAINABLE DEVELOPMENT.