Borusan Mannesmann to Build New EUR 15 Million Facility

Borusan Mannesmann Invests EUR 15 Million in New Facility Borusan Group subsidiary Borusan Mannesmann is preparing to establish a new facility in Romania with an investment of approximately EUR 15 million. The company will serve the automotive sector with this new investment, which will strengthen its position in Eastern Europe. Under the investment plan of Borusan Tube Products SA, the company has received approval for EUR 5.8 million in incentives from the Romanian Ministry of Finance and aims to begin production by the end of 2023. Borusan Mannesmann, leader in Turkey's steel tube market, is preparing to establish a new facility in Romania with an investment of approximately EUR 15 million in line with its sustainable and healthy growth targets. The facility, which will bear the name Borusan Tube Products SA and will begin construction work in March 2023, will carry out cutting and processing of cylinder tubes used in shock absorbers, reserve tubes and mono-tubes with special applications. Borusan Mannesmann aims to deliver more than 10,000 tonnes of short-cut shock absorber tubes to its customers by 2026 through the facility, which will have 4,800 m2 of production and storage areas. Additionally, with this investment, the company aims to create employment in the region. Upon completion of the facility, it will provide employment opportunities for more than 50 people in the first phase.

"Eastern Europe will be our main market"

With the new facility utilizing technologies such as short cutting, brushing and in-line washing, Borusan Mannesmann will serve shock absorber manufacturers in the automotive supply chain. Zafer Atabey, General Manager of Borusan Mannesmann, made the following statements on the matter: "We have taken an important step to strengthen our position in Eastern Europe. Together with our existing customers, particularly in Romania and Poland, we will have potential projects in Slovakia and the Czech Republic as well. With these investments, we are taking an important step towards making Eastern Europe our main market. With our facility where construction work will begin in the coming days, our target is to start production by the end of 2023 and deliver the final products to our customers."

EUR 5.8 million incentive from Romanian Ministry of Finance

Borusan Mannesmann purchased land valued at EUR 805 thousand in the city of Ploieşti, Romania at the beginning of 2022 for the facility investment. Within the scope of the investment, the company received approval for EUR 5.8 million in incentives from the Romanian Ministry of Finance, accelerating the facility investment.