OYAK ERDEM‹R - ERDEMİR

• BOF modernization to produce the liquid steel volume
required to meet our production targets.
• Calcination Plant No.8 construction to supply calcine
needed to reach our production output targets.
• Scrap Preparation Plant construction to prepare scrap
metal for use in the BOF when that modernization project
is completed.
• New Slab Casting Plant No.2, which has the same
capacity as Slab Casting Plant No.1.
• Slab Heating Furnaces No.1 and 2 construction to supply
the new flat steel Hot Strip Mills with pre-heated slabs.
• Hot Shearing and Slitting Lines construction to custom
cut flat steel coils to the sizes required by our customers.
• Steam Boilers No.6 and 7 construction to meet increased
steam consumption needs as result of production output
increases.
• Turbo Generator modernization in the steam regulation
and automation systems to reduce steam used per unit
of electricity generated.
• Construction and installation of a new 380 kV main
transmission line from Erzin to Iskenderun (the ETL line)
and accompanying Switching Plant to meet higher energy
consumption needs resulting from the plant’s capacity
and product portfolio expansion.
• Air Separation Plant No.7 construction to meet our
oxygen, nitrogen and argon consumption requirements,
in line with plant expansion.
New Hot Strip Mill construction at our ‹skenderun plant,
the core investment in transforming the facility for
manufacturing flat steel products, reached its final stage
and is expected to become operational by spring of
2008.
Investments in Mining
Steel producers with access to their own dedicated
iron ore resources enjoy competitive advantage in the
current market environment of ever increasing raw
material costs and supply bottlenecks. Taking this fact
into consideration, Erdemir Group’s mining arm obviously
plays a very strategic role for sustaining our Group’s
success with its 14 separate iron ore mines, producing
50% of domestic iron ore output and operating the
only pelletizing plant in Turkey.
We plan to strengthen our backward integrated position
by adding a new pelletizing plant at Hasançelebi, with
2,0 million tons per annum pellet output. Engineering
and design is already complete for this investment and
the plant is expected to commence operation in 2010,
significantly reducing both our risk to external supply
shocks and our raw material costs.
Investments at Romania Plant
Brand new Continuous Annealing Furnace No.2 and
Slitting Line were installed and commenced operations
at our plant in Romania during 2007.
Investments at K›r›kkale Plant
A wide range of modernization projects were undertaken
at our pipe manufacturing facility at K›r›kkale during
2007.
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