OYAK General Manager Süleyman Savaş Erdem stated that they will make a transformative investment of $3.2 billion, primarily from foreign financing. Erdem said, “The secret of OYAK’s success story lies in its ability to lead the change. Erdemir and İsdemir, pioneers in the iron and steel sector, have become global players thanks to OYAK’s power and strategic moves. They will lead the sector in our country on the green transformation journey.”
Erdemir and İsdemir, the industrial giants in Turkey and part of the OYAK Group Companies, have announced the Net Zero Roadmap to contribute to Türkiye’s 2053 net zero emission target. Shaping their green transformation steps, they aim to reduce carbon emissions per ton by 25% by 2030, 40% by 2040, and achieve net zero emissions by 2050, compared to the base year of 2022. Erdemir and İsdemir, Türkiye’s leading producers in the sector, will continue to play an active role in the steel sector through their green transformation compliance efforts.
Shaping the future business world
OYAK General Manager Süleyman Savaş Erdem highlighted OYAK Group Companies’ sustainability investments and efforts to reduce emissions. Erdem said, “With the announcement of carbon emission reduction targets in many countries, industries worldwide are formulating roadmaps accordingly. Companies investing in the future commit to net zero emission targets and embark on realizing the necessary regulations. These steps, taken for a greener and more sustainable world, also ensure that companies maintain their competitiveness in global markets. It is important to be able to implement the strategies determined for the ultimate goal of net zero emissions. For this, the capabilities, process and governance to realize this transformation are needed as much as the design of a net zero emission roadmap.”
Emphasizing that OYAK has shaped the future business world with the transformation and restructuring in the last eight years, Erdem continued:
“The secret of OYAK’s success story lies in its ability to lead the change. In this era of change and transformation, we act with sustainable growth, responsible production, and a people-oriented approach in all sectors. With our exemplary achievements, we focus on creating sustainable value in every field, continuing our activities with a sense of responsibility towards the economy, environment, and society. We are increasing our investments in sustainable production by adhering to our environmental and green transformation principles.”
Sustainability-conditional external financing
OYAK General Manager Erdem stated that an investment exceeding $3 billion is planned as part of Erdemir and İsdemir’s green transformation journey. Erdem said, “Erdemir and İsdemir, two of our country’s most valuable industrial assets, have successfully charted a roadmap for green transformation. We are committed to a transformational investment of $3.2 billion in Erdemir and İsdemir by the end of 2030 to achieve our short-term goal of reducing carbon emissions by at least 25% per ton of crude steel produced. These projects include the installation of a Solar Power Plant (SPP) with an annual electricity generation capacity of 1,710,000 MWh. We plan to utilize foreign financing sources, primarily with sustainability conditions, for these projects. Our companies’ green transformation plan and net zero emission target will serve as a model for the iron and steel sector in our country and shape the future of the sector. This transformation in steel production, which plays a crucial role in aspects of life such as buildings, automobiles, white goods, and electronic equipment, will pave the way for all sectors in this field. Erdemir and İsdemir’s crude steel capacity is set to reach 13 million tons by 2030. Since 2016, Erdemir and İsdemir have been actively working and investing in green transformation, continuing to lead the sector with the upcoming initiatives.”
Green transformation steps and processes are planned
Serdar Başoğlu, OYAK Mining Metallurgy Financial Management and Financial Affairs Group Vice President, emphasized that they have acted responsibly as a leading player in the sector for 58 years. Başoğlu said:
“Our companies Erdemir and İsdemir, holding significant economic value for our country and region, have crafted a roadmap, demonstrating their commitment to taking steps for green transformation. We have strategically planned the essential steps to complete the green transformation in our companies, meeting the expectations of customers, investors, and other stakeholders, along with outlining the processes to implement these steps. As OYAK Mining Metallurgy Companies, we analyze our greenhouse gas emissions, identify sources causing the increase, and plan actions to mitigate them. In this context, preliminary studies for emission reduction, such as energy efficiency initiatives, increased use of scrap in production, and utilization of HBI (hot briquetted iron), have been carried out. Additionally, we have shaped our net zero roadmap through feasibility studies, keeping abreast of the development of low-emission steel production technologies. Embarking on our green transformation journey with the goal of achieving net zero emissions by 2050, we will take decisive steps towards a sustainable future through improvement and investment activities focused on reducing carbon emissions and enhancing energy efficiency.”
Addressing questions from the press, Serdar Başoğlu noted that 70-80 percent of the $3.2 billion investment will be sourced externally, utilizing easily accessible financial resources for the green transformation.