Kocaer Çelik, one of Turkey's leading steel manufacturers, demonstrated a resilient performance in the first quarter of 2025 despite challenging global market conditions. The company's deputy chairman and general manager Mehmet Çakmur announced that its sales volume increased by 21 percent year on year in the first quarter, reaching 150,000 mt.
In an interview with Bloomberg HT, Mr. Çakmur highlighted that, while global steel prices declined by approximately $100/mt compared to the previous year, the company maintained strong operational metrics. Revenues reached TL 4.5 billion, with EBITDA margins improving by nearly 300 base points to 14 percent. Notably, the company achieved a 106 percent increase in net profit while maintaining disciplined debt management.
The company's strategy of focusing on value-added products continues to pay dividends, with these specialized products now comprising 49 percent of its total sales, up from 42 percent in the previous year. Mr. Çakmur indicated that the company expects to maintain its profitability, supported by facility modernizations completed in 2024 and the introduction of 14 new products in 2025, some of which are being produced in Turkey for the first time, and that it aims to increase its share of value-added sales to 70 percent by 2030.
Kocaer Çelik's export-oriented business model remains robust, with 75 percent of production directly exported to markets across America, Europe, and the MENA region. Supported by sales via Turkey’s inward processing regime, nearly 85-90 percent of the company's products reach international markets.
According to the general manager, the company is particularly focused on expanding its presence in the US market, where recent trade policy changes have created more favorable competitive conditions. Trump's second-term policies have cancelled other countries’ exemptions from Section 232 tariffs, eliminating previous bilateral trade disadvantages and creating a level playing field that benefits Turkish exporters.
Looking ahead, Çakmur expressed optimism for continued growth, targeting a 10 percent increase in sales volume for 2025. The company is exploring expansion opportunities in various regions, starting with distribution channels before potentially establishing service centers and production facilities. Despite ongoing challenges in global steel markets, particularly related to China's economic slowdown, Kocaer Çelik expects to maintain its current profitability levels while the broader industry anticipates improvement in 2026.