China's Yongjin to Build USD257 Million Plant in Türkiye to Export Steel to Europe

(Yicai) March 24 — Chinese steelmaker Yongjin Technology Group and its partners will invest CNY1.9 billion (USD257 million) to establish a stainless steel plant in Türkiye to meet local demand and export products to Europe.

Yongjin will construct the factory with an annual output of 400,000 tons of cold-rolled steel sheet and strip in the Yalova Machinery Specialized Organized Industrial Zone in northwestern Türkiye, the Zhejiang province-based company announced recently.

Construction is expected to take 24 months. One of the two production lines will make 80,000 tons of high-end products per year and the other one will produce 320,000 tons of general-purpose products.

To fund and operate the factory, Yongjin will form a joint venture with two Chinese partners. Yongjin will hold an 80 percent stake, while the other two investors will have 15 percent and 5 percent shares, respectively.

The project will allow Yongjin to leverage Türkiye’s strategic location and favorable trade conditions for the European market, expand its international presence, and strengthen its global brand, the company stated.

Yongjin is a leading producer of cold-rolled stainless steel products that are used across sectors such as home appliances, automobiles, and medical equipment. It operates five production bases in China, two in Vietnam, and plans to begin construction of a new factory in Thailand soon.

In 2023, Yongjin produced over 2.8 million tons of cold-rolled stainless steel. Its overseas sales tallied CNY4.1 billion, making up over 10 percent of its total. Moreover, the annual report identified Arçelik A.Ş., the Turkish owner of home appliance brands Beko and Grundig, as one of its key international clients.

Yongjin’s stock price  [SHA: 603995] climbed 0.5 percent to close at CNY21.26 (USD2.90) in Shanghai today after rising as much as 1.4 percent intraday while the Shanghai Composite Index closed 0.2 percent higher.

Editor: Emmi Laine