CEM USTUN, MMK-ATAKAS COATED STEEL MARKET IN TURKEY
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1 CEM USTUN, MMK-ATAKAS COATED STEEL MARKET IN TURKEY
2 Agenda Identifying sectors driving biggest demand Examining transition in demand for colour coated steel in cladding and roofing. Entering niche markets- white-goods and brown goods
3 Demand Roofing & Cladding Containers Appliances ( Heating, Ventilation, Air Conditioning, Laundery, Refrigeration, Cooker, Brown Goods) Cold Storage Room Garage Doors Rainwear Automotive ( Body, Trailers, Truck Caps, Filters ) Metal Furniture (Shelving, Electric Boxes, Lighting Fixture)
4 Demand
5 Supply Biggest supplier is MMK-Atakaş ( ) mt yearly production in Đskenderun mt yearly production in Đstanbul ( to be started in the end of this year) Tezcan mt annually Coatcoil mt annually Corus mt annually
6 Supply Demand
7 Supply Demand
8 About MMK-Atakaş JV of MMK Group and Atakaş group %50 MMK %50 Atakaş Greenfield investment Groundbreaking in billion usd investment cost Two production locations and one sea port
9 About MMK-Atakaş Production mt Crude Steel - Đskenderun mt Hot Rolling Mill - Đskenderun mt Pickling Đskenderun mt Cold Rolling Đskenderun mt Galvanizing - Đskenderun&Đstanbul mt Color Coating - Đskenderun&Đstanbul Only integrated PPGI producer of Turkey
10 About MMK-Atakaş Aiming to export half of PPGI production (Europe, middle-east, north africa) promote steel construction replace GI with PPGI in roofing-cladding
11 Biggest Demand - Roofing & Cladding Sandwich Panel Production M2 yearly domestic production (2010 Estimate) Nearly mt Export to middle-east market Less weight with more resistance Fire Safe Heat,water and sound isolation
12 Biggest Demand - Roofing & Cladding Single Layer Panel Production Around mt per year Increasing number of producers (After MMK-Atakaş investment 9 companies invested on single layer panel production) North part of Turkey Protection from rain East part Protection from snow West and south Heat Isolation
13 Transition In Demand - Roofing & Cladding Single Layer Panel Production Conversion from GI panel to PPGI panel Visuality Better corrosion resistance Energy effiency Environmental benefits Long life
14 Transition In Demand - Roofing & Cladding Metal Roofing Formed easily, enabling textures Flexible building - Mixture of different colors Special coatings which reflect infra-red light Solar reflectivity %40 less energy for cooling (*) Recyclability Replacing Concrete Wood
15 Transition In Demand - Roofing & Cladding Steel Constructions Currently %20 of the all domestic constructions are steel construction. This ratio is more than %50 in developed countries %5 of all houses are isolated houses. Energy comsumption of houses for heating is %72 of all household consumption. Promotion is required for more steel constructions Mainly airports, industrial buildings and shopping malls.
16 Niche Market - Appliances Pre-painted & Post-painted Cheaper Better corrosion resistance compares (Even on cut-edge) Outsourcing Saves manpower Remove bottlenecks Reduce work-in-process inventory Reduce material stock
17 Niche Market - Appliances Special Coatings Antimicrobial Fingerprint Resistance Anti-Static
18 Niche Market - Appliances Resistance to change process Finished investment on painting line Weldability Visible cut-edge Joining Risk of scratch during transportation and handling
19 Niche Market - Appliances Collaboration during product development process Designing process to hide cut-edge parts Designing process to enable joining with adhesive bounding or screws or bolts. Long term business relations for reducing cost
20 Niche Market Others Metal Doors - Currently post-painting HVAC Galvanized Material is used in domestic market in vantilation Air conditioning embracing the PPGI products Heating is using post painting process Metal Furniture File Cabinets Desk Cubical Dividers
21 Future Increasing demand for PPGI Construction Appliances Transition from GI to PPGI Over-supply after 2011 More customer-oriented services Decreasing profit margin Increasing export volume
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