Chairman's Message

Our Primary Agenda: Sustainability

With the slogan "Tosyalı for Sustainable Living," we have set sustainability as our primary agenda for many years, and we have accomplished numerous initiatives that are recognized as best practices worldwide. With sustainability-focused investments in Türkiye as well as in Algeria, Libya, Angola, Senegal, and Spain, we are steadily advancing towards becoming one of the world’s leading green steel producers.

Over the past five years, Tosyalı has invested more than 6 billion USD, with the majority of these investments being directed toward sustainability. Our investments in R&D, advanced technologies, circular production, and clean energy sources such as solar and hydrogen continue unabated. As the company with the largest rooftop SPP (Solar Power Plant) in the world, we are continuing to expand our solar energy investments. We have taken the first step for one of the world’s largest self-consumption solar power projects, with a capacity of 1.2 GW, by initiating the first phase in Osmaniye. We will produce our own solar panels in Osmaniye and install them in solar power fields across eight different provinces, starting with the first project. This will allow us to meet nearly 50% of our self-consumption from solar energy. In addition, we continue to focus on hydrogen, a clean energy source, at our facilities. Our second Direct Reduced Iron (DRI) plant in Algeria is the world’s first commercial-scale plant capable of operating with 100% hydrogen, thanks to its advanced technology, which uses both natural gas and a small modification for hydrogen use. In addition to our hydrogen-compatible DRI plants, we are also conducting research and development activities on various technologies related to hydrogen usage in production. All of these investments are strengthening our position in energy usage, making us more robust and independent, while also further solidifying our status as one of the world’s foremost green steel producers.

In our sector, we are one of the first companies to report on the EU Green Deal's Carbon Border Adjustment Mechanism (CBAM) with actual values and share these low values with our customers. In our products made solely with our own raw materials, we achieve nearly 50% lower carbon emissions in product-specific emissions compared to our competitors and accepted benchmarks. In many of our facilities, we have obtained Environmental Product Declarations (EPD) for all product categories, which are crucial in the production of green steel and demonstrate our carbon footprint. We have documented that we are one of the lowest carbon footprint producers. As a reflection of all these sustainability-focused investments, we introduced our Tosyalı V-Green brand, which consists of certified green steel products, marking another pioneering achievement in the world. We will continue our sustainability-focused investments in the coming period, further strengthening our position as a global green steel producer.

Growing with Eco-Efficiency-Focused Investments

At Tosyalı, our eco-efficiency-focused investments in Türkiye and various parts of the world continue to be the key factor for ensuring our long-term, healthy, and stable growth. With this vision, despite the devastating earthquake, we began production in 2023 at Tosyalı Demir Çelik İskenderun Facility, which is the largest industrial investment in Türkiye in recent years. With an investment value of 2.5 billion USD, this facility not only eliminates Türkiye’s 4 million tons of flat steel imports but also significantly contributes to the export of value-added steel. Tosyalı Demir Çelik İskenderun Facility, which is a global benchmark in design engineering, enables us to introduce nearly 500 different grades and sizes of new products to the market. Particularly, with this investment, we have increased the supply of qualified steel products for the automotive and white goods industries, which have traditionally been met through imports, addressing a key domestic need. The facility stands out globally with its Industry 4.0 compatibility, use of advanced technologies, and green steel production capabilities. Thanks to the Quantum Furnace technology, a first in Türkiye, it produces significantly lower carbon emissions. With the use of advanced technologies, more efficient scrap utilization, and renewable clean energy sources such as solar energy, the facility consumes 30% less electricity and 15% less natural gas. Thanks to all the sustainability-focused investments, our facility generates 70% less carbon footprint compared to blast furnaces and 20% less compared to traditional electric arc furnaces. Tosyalı Demir Çelik İskenderun Facility is recognized as one of the pioneering investments in both Türkiye and globally, particularly for high-quality green steel production.

As a global steel company, one of the driving forces behind our success has been Tosyalı Algérie production complex. Today, at our Tosyalı Algérie facility, we have a total of 17 mega factories and a fully integrated port. With over 5,000 employees and a total liquid steel capacity of 8 million tons spread across 5 million square meters, we are the largest integrated steel plant in Africa. Apart from Algeria's hydrocarbon-based sectors, we are the largest company and exporter in the industrial sector. In the 5-stage Tosyalı Algérie production complex, we recently launched our slab production facility and the second DRI plant as part of the ongoing 4th phase investments. Building on the success of our DRI production plant, which has set world production records for consecutive years, we are proud to have inaugurated our second DRI plant in 2024. This plant is the first commercial-scale facility in the world capable of operating with both natural gas and 100% hydrogen, thanks to a minor modification. This accomplishment has allowed us to create the largest twin DRI production plant in the Mediterranean basin, covering Europe and North Africa, with a DRI production capacity exceeding 5 million tons, positioning Tosyalı as a global leader in DRI production. Following the success of our second DRI, we also produced our first hot rolled coil in the flat steel category at Tosyalı Algérie and began exporting it to global markets. Furthermore, as part of 4th phase investments, we have completed and commissioned a new Pelletizing Facility with a capacity of 4 million tons, a new steel mill investment with an annual capacity of 2.3 million tons, and a new Enrichment Plant with a capacity of 4 million tons. Once all our investments are completed, Tosyalı Algérie will become a fully integrated and fully independent facility with an annual production capacity of 9.5 million tons of flat and long products, producing steel in all segments. It will not only be one of the most important and strategic integrated steel production hubs in the Mediterranean and Africa but will also become one of the world’s leading green steel producers, playing a pivotal role in the global green transformation of the steel industry.

As part of our investments in Africa, we have partnered with United Steel Company for Iron and Steel Industry (SULB) to establish the world’s largest DRI plants in Benghazi, Libya, with a total capacity of 8.1 million tons. Together, we formed Tosyalı SULB Steel Industries. We have already begun investments for the first phase of this integrated iron and steel facility, which will consist of three phases, with the first phase having a capacity of 2.7 million tons. Our plant will not only meet the HBI (Hot Briquetted Iron) needs of both the local region and Europe but also strengthen our position as a global producer of green steel.

Another investment of ours in Africa is in Angola, where we are expanding our operations in collaboration with Sonangol, the state-owned oil company of the Republic of Angola. In addition to our existing iron ore investment, we are partnering to establish an integrated iron and steel plant, further growing our presence in the country.

We continue to integrate companies that can add value to us with a focus on efficiency into the Tosyalı portfolio. In this context, at the beginning of 2024, we acquired STS, one of Spain’s leading steel pipe manufacturers. Thanks to the efficiency improvements made post-acquisition, we achieved a 12-fold increase in production in the first phase. Additionally, by acquiring Baştuğ in the final months of 2024 in Türkiye, we have added 2 million tons of liquid steel capacity to our group. 

We create value for all our stakeholders with a responsible ecosystem approach

As Tosyalı, we not only produce iron and steel but also reach a wide impact area with nearly 50 facilities across three continents and exports to over 100 countries. In order to facilitate the transformation needed for a sustainable future in this vast ecosystem we touch, we work with the Responsible Ecosystem Management approach, focusing on priority areas such as supply chain, water risks and management, circular production, and responsible investments. Together with our human resources, suppliers, and business partners, our primary goal is always to create work that benefits the environment, society, and the world. We strive to build an innovative, productive, and responsible ecosystem in line with sustainability principles, continuously developing all our operations according to corporate governance standards. We maintain uninterrupted communication with our suppliers and business partners, enhancing the value our products and services create for people, the environment, and society through their experiences and feedback. We recycle every material in our ecosystem — air, water, and even dust — through circular production. We consider expanding our social investments in all the countries we operate as a moral obligation and continue to mobilize all our resources towards this cause. Believing that the prerequisite for being a good company is leaving a better future for the next generations, we prioritize social projects that will add value to community life in all the regions we are present. We make societal investments to improve education, healthcare, worship, arts and culture, environmental protection, and sports, while enhancing solidarity. With the belief that raising awareness about sustainability in society will accelerate change and transformation, we support sustainability in art.

We aim to be one of the top three most preferred companies by talent in the industry

As Tosyalı, we view our human resources as our most valuable asset that will carry our organization into the future. With this understanding, we focus on creating a work environment that not only generates economic value but also environmental and social value, contributing to the construction of a sustainable future. Through Tosyalı Academy, we continue to organize training programs that will ensure the continuous development of our human resources, enhance their competencies, and foster a work environment where development becomes an integral part of the job. We are committed to becoming one of the top three most preferred companies by talent in the industry. We see inclusivity and diversity as some of the most important elements for the future of our business. We provide equal opportunities and make the suggestions and evaluations of our human resources an inseparable part of our business processes. As an organization aware of the creativity, innovation, and productivity that diversity brings, we continue to work towards increasing the proportion of female employees.

We will continue to progress towards our goal of becoming one of the top 20 steel companies in the world

As the world goes through a process where change and transformation are accelerating, and where challenges are accompanied by opportunities, sustainability, efficiency, and economies of scale will remain our top three priorities as Tosyalı. With a focus on sustainability, we will concentrate on low-carbon green steel production through investments in R&D, innovation, efficient process management, renewable energy sources, and AI-based advanced technologies. At the same time, we will prioritize efficiency, one of the key pillars of sustainability, enabling us to produce more with fewer resources. With the changing global economic order, we will use our capacities more efficiently and, with our new facilities, further enhance both the quality and diversity of our products. Thanks to our completely independent, dynamic, and efficient structure that resolves everything from mining to the final product within the Tosyalı ecosystem, we will successfully manage all forms of change and transformation. By drawing strength from this value chain and acting in line with the principle of eco-efficiency, we will continue to achieve sustainable growth in the coming period. Through projects that raise awareness of environmental and social issues and social investments that contribute to the happiness and well-being of people, we will resolutely continue towards our goal of providing a better life for all living beings. With the environmental, social, and economic benefits we create, we will generate value for all our stakeholders, as we did yesterday, today, and will continue to do tomorrow. With this strategic approach, we will steadily advance towards our goal of becoming one of the top 20 steel companies in the world within the next five years.

With over 70 years of experience, as Tosyalı, we will continue to work and produce for a sustainable future with the same determination. We would like to express our gratitude to all our stakeholders, especially our employees and business partners, for moving forward with us around these shared values and goals for a better world.

Sincerely,

Fuat Tosyalı

Chairman of the Board