In 1950s, paired with the increasing weight of industrial production in economy, Turkey’s economic and social structure also underwent a significant transformation. On one hand the volume of agricultural loans extended to farmers, the number of dam constructions, and the size of the irrigated lands increased, and on the other rate of urbanization accelerated, which translated into a huge demand for flat steel in many industries, such as tin, tubes and pipes, railway cars and agricultural equipment industries. It was almost impossible to meet this huge demand with foreign currency reserves which were depleting quite fast in the face of on-going investments.
First Step Taken in 1954
In 1954, a commission led by Sümerbank, was created with representatives of competent Ministries to discuss the need for establishing the national steel and iron industry. In 1959, a delegation of the Ministry of Industry and U.S. company Koppers launched a feasibility study and started to explore options on how to found a new company.
Koppers Associates SA, İş Bankası A.Ş., Iron and Steel Plants Directorate General, and Ankara Chamber of Commerce and Industry were among the founders of the flat steel production company. These organizations signed a protocol at the end of 1959 and selected a commission responsible for drafting and implementing a bill for the company to be established, Founders’ Agreement, and Articles of Association.
First Flat Steel Production Plant in Turkey
Founders’ Agreement was signed on 12 February 1960 for establishment of the first flat steel production plant in Turkey. Under Law No. 7462 enacted on 28 February 1960, the Council of Ministers was authorized for the establishment of a joint stock company named Ereğli Demir ve Çelik Fabrikaları T.A.Ş. (Erdemir). The Company, registered officially on 11 May 1960 was ready to meet the demand of the existing manufacturing industry in Turkey and to contribute to the development of new industries.
Construction and installation works started in 1961 and only after 42 months, we started our production on 15 May 1965 with a production capacity of 0.5 million tons of crude steel and 0.4 million tons of flat steel.
New “Ayşe” Commissioned in 2008
In 1996, we completed one of the largest industrial investments in Turkey : the Capacity Expansion and Modernization Projects KAM I and KAM II. In 1998, we completed our new port, which is one of the largest in Turkey, and in 1999 we opened our tin/chromium coating plant. In 2008, we commissioned Ayşe, our new Blast Furnace No.1 which is completely designed and manufactured by our engineers and workers.
Committed to Continuous Growth
We turned into a group of companies through organic growth and acquisitions of domestic and international companies. Erdemir Group is composed of Ereğli Demir ve Çelik Fabrikaları T.A.Ş., its flagship company, and İskenderun Demir ve Çelik A.Ş (İsdemir), Erdemir Madencilik San. ve Tic. A.Ş (Ermaden), Erdemir Mühendislik Yönetim ve Danışmanlık Hizmetleri A.Ş. (Erdemir Mühendislik), Erdemir Çelik Servis Merkezi (Ersem), Erdemir Romania S.R.L. and Erdemir Asia Pacific Pte.
Since 27 February 2006 Erdemir is continuing its operations as a part of OYAK, one of the largest groups in Turkey, with its vast experience in international markets, robust financial structure, and modern management policies.