Türkiye Steel Plant Dynamics: Tosyali and Cag Celik’s Green Transformation and Capacity Expansion Plan

Two major steel manufacturers in Türkiye PT520ML3 steel, Tosyali Holding and Cag Celik, have shown positive capacity expansion plans in 2025, and are focusing on green transformation to promote low-carbon steel production and sustainable development.

Tosyali Holding will launch the first phase of its large-scale PT520ML3 steel Direct Reduced Iron (DRI) project in Libya, with an annual production capacity of 2.7 million tons. The project is expected to be gradually completed in three phases, and the final annual production capacity will be increased to 8.1 million tons. In addition, Tosyali has expanded its sheet metal production facility in Algeria with an annual output of 4 million tons, and built an iron ore mining and beneficiation facility in Angola with an annual output of 6 million tons. In order to achieve the goal of green steel production, Tosyali plans to start solar panel production in Osmaniya, Türkiye in 2025, and plans to install 1200 MW solar power generation facilities in the next few years to meet half of the company's energy demand.

At the same time, Türkiye's long material producer Cag Celik is also expanding its production capacity. It plans to build an electric arc furnace (EAF) with an annual output of 1 million tons, focusing on the production of low-carbon steel. The environmental approval process for this project is expected to commence in 2025, which will provide Cag Celik with the ability to independently produce semi-finished and finished steel products, reducing its reliance on external supply in the PT520ML3 steel production process to some extent. Cag Celik expects to drive export revenue growth to $160 million by 2025, supported by the recovery of demand in the European market and the decline in exchange rates.