|KÜRÜM INTERNATIONAL SH. A.|
|Field of Operation
||Production of hot-rolled steel re-bars and lime (fragmented-hydrated)|
|Number of Employees
||12% White Color, 88% Blue Color|
||700 thousand tons steel re-bar|
510 thousand tons billet
|Production in 2011
||464 thousand tons steel re-bar|
295 thousand tons billet
|Sales in 2011
||329 thousand tons (Steel-bar 87%, Commodity 13%)|
|Turnover in 2011
||256 million euro|
Kürüm in Albania
The strategic and commercial importance of Albania, Kürüm Holdings hub for foreign investment and expansion plans, continues to grow in Southeastern Europe. The Holding also places great importance on this country with regards to future development. In addition to producing iron and steel products, Kürüm International also produces lime and industrial oxygen in Albania.
Besides the above referenced production facilities, the Company significantly expanded its service network in Albania with Kürüm Durres, which became a fully owned Kürüm Holding subsidiary in 2009. Kürüm Holding plans to continue its operations with the same forward momentum in Albania, which has attracted increasing attention from a number of countries due to large-scale investment projects and high growth potential. While enhancing its sector dominance in the regions economy, Kürüm Holding is also entering into new sectors; in fact, the Holding is set to become one of the leading industrial powers in the Southeast European market.
Kürüm Internationals facility occupies an area of more than 219,410 square meters and is equipped with cutting-edge technology. The Company is the sole iron and steel manufacturer in Albania and ranks among the most prominent corporations in the country. Through world-class production quality and a reliable brand image, Kürüm International strengthens its market position year after year not only in Albania, but also throughout Southeastern Europe. The Company sells approximately 68% of its products to Albania and the remaining 32% to the neighboring countries, Serbia, Kosovo and Macedonia.
The close proximity of Kürüm International facilities to its market and the resulting logistical advantages provide the Company with numerous opportunities to expand its production capacity, market share and service network to the surrounding region. The high cost of imports for iron and steel products and certain advantages obtained in input costs are among the key factors that make Albania an essential country to invest in from the perspective of Kürüm Holding subsidiaries.
Kürüm Holdings growth and development strategy in the Albanian market is based on the following three concepts:
Reducing input costs;
Improving and diversifying the quality of products and services; and
Developing sustainable and lasting business partnerships in the region.
Kürüm International has largely consolidated its position in the market through a consistent pricing strategy, strong cooperation forged with retailers and an effective premium-based marketing and sales strategy.
Kürüm International has widely penetrated the Serbian market by both selling its products and buying scrap, the most important raw material input. In 2011, the Company continued to pursue its growth strategy in the region, operating from Albania. The Company increased its revenue from exports by 21% in tonnage.
Established to conduct Kürüm Holdings operations in Albania, Kürüm International signed a Contract of Concession related to privatizations with the countrys Ministry of Public Economy and Privatizations. After operating the Elbasan Steel Production Facilities on the basis on this agreement, Kürüm International acquired full ownership of the facilities from the Albanian Ministry of Privatization in 2009, taking an important step in terms of its corporate development. With this strategically important acquisition, Kürüm International became a 100% Turkish company operating in the iron and steel sector abroad and the largest Turkish industrial investor in the Balkans. This initiative is clear proof of the Companys ability to turn the economic crisis into a market opportunity.
Comprised of one meltshop and three rolling mills and located on a parcel of 219,410 square meters, of which 88,410 square meters are covered, the Elbasan Steel Production Facilities have an annual capacity of 700,000 tons of hot-rolled steel re-bar and 510,000 tons of liquid steel. The facility has the capability to meet Albanias total long-term product requirements.
Operating in the area of steel re-bar production at high quality standards for over a decade, the Company made significant investments to increase product diversification and quality. To this end, a scrap processing unit was transferred from Germany to Kürüm International Elbasan Steel Facilities in order to clean scrap of non-metallic contamination; to increase its density; and to effect energy savingswhile raising productivity. The unit became operational at the end of 2011, after the completion of all testing procedures.
In 2010, the rolling mill at Kürüm Internationals Albanian steel facilities was completely renovated to reach an annual production capacity of 450,000 tons of exportable goods. As the temper furnace of this rolling mill was heated with fuel oil, the Company obtained the necessary permits to make the system compatible with LPG/ Natural Gas. Subsequently, LPG tanks were constructed and installed while all testing procedures were completed.
Another important initiative undertaken to increase the capacity of Kürüm Internationals Elbasan Steel Production Facilities was the improvement of the Continuous Casting Machine. With this project, production of 150-mm billets has already commenced; in addition, production of 130-mm billets is also possible should there be demand.
Making ambitious investments to expand its product range and further increase production quality, Kürüm International sharpened its competitive edge in 2011. The Company has additional improvement plans for 2012. In parallel with the expected recovery of the real economy in 2012, Kürüm International plans to transfer its infrastructure and technology superiority to its growth and expansion strategy.
Kürüm International is comprised of one meltshop and three rolling mills. The Company converts billets produced in its meltshop into construction bars at its rolling mills located on the premises. While most of the raw materials required for the meltshop are supplied by the domestic market, the Company also sources raw materials from Montenegro, Macedonia, Serbia, Kosovo, and other countries. Kürüm Internationals rolling mill facilities increased its production to 295,333 tons in 2011, up from 235,882 a year earlier. Additionally, billet production increased by 19% compared to the previous year, to reach 463,620 tons.
Kürüm International realizes 48% of its total sales, including billets, in Albania. As a result, the Company supplies 80% of the countrys total market demand. The Companys exemplary performance in the Albanian market is a result of its ability to offer Kürüm Holdings quality excellence in all areas and regions.
At Kürüm International, production operations are in compliance with EN 10080 (B500CEurope), DIN 488 (B500A-Germany), D.M. 14.01.2008 (B450C-Italy) and ASTM A615A (G60-US) international product standards; in addition, the Company holds ISO 9001: 2008 Quality Management System, ISO 14001 Environmental Management System and OHSAS 18001 Occupational Health and Safety Management System certifications. In the coming period, by further strengthening its proactive marketing policies, Kürüm International plans to extend its successes in the Albanian market to other countries in the region.
Lime Production Facility
Kürüm International owns the only slaked (hydrated) lime production center in Albania that employs state-of-the-art technology. With a production capacity of 72,000 tons per year, the lime-processing facilities provide 70% of the countrys demand for lime.
The raw materials needed for production at the facilities are sourced entirely from the local market, providing the Company with a significant competitive advantage.
The environmentally friendly de-dusting unit and auxiliary equipment were put into service in 2011. With the completion of this initiative, the plant became compliant with EU emission standards requirements.
Kürüm Internationals lime products is produced at a quality level exceeding EU standards and in 2011 continued to be used in larger volumes in the electro-metallurgy industry.