Erdemir's Ambitious $825 Million Investment Plan for 2025
Key Ideas
- Erdemir plans to invest $825 million in 2025, focusing on green steel transition and modernization efforts, including a pelletization plant and an EAF.
- The company has significantly increased its yearly investment amount compared to the previous decade, aiming to reduce carbon emissions and enhance competitiveness.
- Erdemir aims to achieve zero carbon emissions by 2050, with ongoing projects like a coke battery, a solar power plant, direct reduced iron, and green hydrogen production facilities.
- Despite challenges from global excess capacity and cheap imports in 2024, Erdemir expects to reach its targeted EBITDA of $140/mt by the second half of 2027 through sustainability investments.
Turkey-based Erdemir, a subsidiary of OYAK Mining Metallurgy Group, is set to invest a total of $825 million in 2025 as confirmed by investment firm Ünlü & Co. A major portion of this investment will be directed towards green steel transition and modernization initiatives, including establishing a pelletization plant with a capacity of 3 million mt and an EAF with a capacity of 1.4 million mt. Erdemir's investment amount for 2025 has nearly tripled compared to the previous decade, highlighting the company's commitment to sustainability and innovation. The company aims to achieve zero carbon emissions by 2050 and has already made strides in this direction with recent projects like the commissioning of a coke battery and plans for a solar power plant and green hydrogen production facilities. Despite facing challenges such as global excess capacity and cheap imports in 2024, Erdemir remains optimistic about its financial prospects, targeting an EBITDA of $140/mt by the later part of 2027. The company's first quarter results in 2025 showed an EBITDA of $60/mt, indicating progress towards its long-term goals.