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INTRODUCTION
5
ERDEMİR GROUP
2014 ANNUAL REPORT
An estimated 3.3% growth for the Turkish economy in 2014.
Despite the volatility in international markets during 2014, the Turkish
economy again stood out with its resilience. The raft of proactive
macroprudential policies and measures taken went a significant way towards
protecting Turkey’s economy from the instability in international markets,
and the Turkish economy benefited from export-driven growth throughout
2014. A jump in food prices resulting from the drought conditions pushed
inflation to above the target levels, while the spectacular decline in oil prices
brought relief to the economy. The 50% plunge in oil prices has led to a
significant narrowing in the current account deficit of our country, which is a
net importer of energy.
A global increase of 0.8% in un-processed steel production in 2014.
There was a slowdown in the growth of steel production in China, which
single-handedly meets 50% of global steel production, and Chinese
manufacturers increasingly turned their attention to exports. On the other
hand, South Korea notched up an 8.3% increase in its production of un-
processed steel, leaving Russia behind to take 5th place among the world’s
biggest 15 steel producers.
34 million tons of un-processed steel produced in Turkey
The contraction in Turkey’s un-processed steel sector that was seen in 2013
continued, albeit more slowly, in 2014.
Turkey was the 8th largest steel producer in the world, while the industry’s
capacity utilization ratio edged down from 62% in 2013 to 61% in 2014. In
contrast, iron ore based production of un-processed steel from integrated
plants increased by 3.5% when compared to the previous year, to reach 10.3
million tons. Having demonstrated rapid growth for 4 consecutive years after
the 2008 global financial crisis, total consumption of processed products
in Turkey decreased by 1.8% to 30.7 million tons in 2014. Our industry offers
vigorous growth dynamics, with increasing rates of urbanization and big-
ticket projects in Turkey set to remain the main drivers of steel consumption
going forward. Turkey’s steel inventories are relatively low when compared to
the levels seen in developed countries, indicating the potential growth of our
country’s steel industry.
Another robust and sustainable performance from the Erdemir Group in 2014
The Erdemir Group, a subsidiary of OYAK, was able to once again maintain
a prominent place in the sector by virtue of its remarkable performance and
achievements in the global steel industry during the year. Erdemir Group
added 101 new customers to its portfolio during 2014 and increased its sales
by 2% to US$ 5.3 billion.
5.3
AFTER THE ACQUISITION BY
OYAK, ERDEMİR GROUP ADDED
101 NEW CUSTOMERS TO ITS
PORTFOLIO DURING 2014 AND
INCREASED ITS SALES BY 2% TO
US$ 5.3 BILLION.