NEW YORK (AP) — ArcelorMittal, the world's largest steel company, said Monday it is teaming with Turkish steel producer Borusan to form a 50-50 joint venture in which they will invest $500 million to build a new hot strip mill in Turkey.
The mill, which will be located next to the companies' jointly operated Borcelik plant in Gemlik, on the Marmara sea coast, is planned to come online in first half of 2010 with a capacity of 4.8 million tonnes.
Slabs for this hot strip mill will mainly be sourced from ArcelorMittal, in order to ensure a regular supply of quality products to better serve the booming Turkish steel market.
Netherlands-based ArcelorMittal said the Turkish steel market is strong and expected to grow at a yearly rate of at least 6 percent over the next decade.
''Currently, Turkey imports large volumes of hot rolled coil, and it makes perfect sense to locate such a facility at Gemlik, which has its own port and an ideal industrial layout for such a purpose,'' said Agah Ugur, CEO of Borusan Holding.