Borusan has decided to evaluate options regarding the relocation or sale of its Gemlik facilities. According to the disclosure made on the Public Disclosure Platform (KAP) by the company, the decision was taken in anticipation of border carbon regulations expected to become restrictive for international competition.
“The announcement mentioned the acquisition of ‘Berg Pipe,’ a company based in the United States (‘US’), in April 2023 as part of the company’s infrastructure and project business unit involving large-scale pipe production. With changing market conditions, industrial dynamics, and the strategic goal of becoming a local player in target markets, the Board of Directors, along with the acquisition, expressed concerns about oversupply in large-diameter pipes in Turkey and nearby regions, as well as the strengthening protectionist policies in foreign markets.
Due to expectations of potentially forthcoming regulations like border carbon taxes in the near/medium term, which could further restrict international competitiveness, the statement highlighted the consideration to either partially or entirely relocate the machinery and equipment used in the production of large-diameter pipes within the infrastructure and project business unit at the Gemlik Facilities to our facilities in the US, where we maintain a strong expectation of market demand. This includes considering direct investment or partnership in another geography or evaluating options for the sale of the facilities to potential buyers, while initiating efforts towards the sale of the related land and buildings where the machinery and equipment are located.”
This statement outlines the considerations and intentions of Borusan regarding potential actions related to their Gemlik facilities and the relocation or sale of equipment based on market expectations and regulatory considerations.