OREANDA-NEWS. June 02, 2015. Sumitomo Corporation (Head office: Chuo-ku, Tokyo / President & CEO: Kuniharu Nakamura) and Sumitomo Corporation Dis Ticaret A.S. (Head office: Istanbul / Chairman Noboru Saka) have agreed with MKS Transformer Equipments Industry and Trade Joint Stock Company (Head office: Sekerpinar Industrial Zone, Kocaeri, Gebze, / President: Korhan Akgun / hereinafter “MKS”), which is a silicon steel processing company in Turley, to acquire a share in MKS.

MKS has facilities such as slitting lines, core cutting lines and core stacking lines, to process a mother  silicon steel coil, which is mainly used for iron core of electrical transformers. As MKS has facilities to accomplish continuous process from slitting to core stacking, it is possible to process  siliconsteel as per customer’s needs and deliver “Just In Time”. Sumitomo Corporation aims to expand sales of  silicon steel of Nippon Steel & Sumitomo Metal Corporation, who is the major supplier of the steel to Sumitomo Corporation, to Turkish domestic market and its neighboring countries, by utilizing facilities, location and expertise of MKS.

In global trend of energy-saving and environmental protection, Eco design requirement, which is a regulation of efficiency of transformers, will enter into force from Jul. 2015 in European Union. The regulation increases the demands of high quality  silicon steel, and export of such high quality  silicon steel to Europe is remarked.  
Also, it is expected that demand of electricity in Turkey will increase average 7% per year due to its population increase, economic growth and industrial conversion to heavy industries. Such environment increases the necessity to build/equip new power plants and grids. At the same time, Turkey has several production sites of transformers invested by European heavy electric companies.
In addition, demand of electricity in Middle East and Africa will be increased, due to its increasing population. Turley is a good location to target those markets to export transformers and its steel cores.

Sumitomo Corporation already has  silicon steel processing/sales companies in United States, Mexico, China, and Indonesia. As we acquire a share in MKS, now main markets of  silicon steel can be reached by our processing sites. Sumitomo Corporation aims to expand sales of electrical steel further globally.