Kardemir Çelik lands €22.4M loan to modernise rolling mill
What's the deal? Izmir-based steel producer Kardemir Çelik SanayiDealroom has a profile for this one. Try Dealroom → has secured loan approval to finance a €22.35 million rolling mill modernisation project. China's state-owned export credit insurance agency Sinosure approved the facility on November 9, 2026.
What's the endgame? The investment aims to strengthen the company's competitiveness in international markets and improve its cost structure. It runs alongside a new large section rolling mill, under construction since the first quarter of 2026, with production due to start in 2027.
Why now? Kardemir is pushing toward higher-value steel products as Turkish mills navigate a tough market. Domestic capacity utilisation sat at 64% in January–September 2026, while exports to the EU fell 23% amid tighter quotas and carbon-related trade rules.
The numbers: In the first nine months of 2026, net profit fell 28.41% year on year to US$194.3M, even as sales revenue rose 16.25% to US$4.44B. Operating profit edged up 4.27% to US$438M.
What could go wrong? The loan approval is a financing milestone, not proof the modernisation will pay off. Returns depend on execution and whether new products can win customers beyond pressured export markets.
The signal: The deal reflects a broader bet by Turkish steelmakers on moving up the value chain as traditional export routes tighten. Kardemir has separately secured financing for solar projects to cover about 10% of its electricity use, adding an energy-cost and decarbonisation layer to its investment program.
Read more: steelorbis.com
Image credit: Generated with Gemini
