Press Releases

COURTROOM VICTORY IN USA BY BORUSAN MANNESMANN

Borusan Mannesmann has won the lawsuit brought against the US Department of Commerce, in the International Trade Court.

The US Department of Commerce is now obliged to reduce the compensatory tax rate of 15.89%, which was decided to be imposed on Borusan Mannesmann, to 2.39%.

Borusan Mannesmann, which consolidated its prestigious position established in oil well pipes market in USA over the years with its factory put into service in Houston in 2014, has won a courtroom victory against an unjust tax rate imposed on itself by the US Department of Commerce, as a consequence of intense lobby activities of local steel pipe manufacturers.

The US Department of Commerce is now obliged to reduce the compensatory tax rate, which was decided to be imposed on the products of Borusan Mannesmann based upon the claims that it is subsidized by Turkey, from 15.89% to 2.39%. The interpretations and instructions of the International Trade Court, which was litigated by Borusan Mannesmann as a part of its legal struggle against an unjust decision, obligate the US Department of Commerce to reduce the tax rate to a great extent.

Semih Özmen, the Chief Executive Officer of Borusan Mannesmann, evaluated the recent developments as follows:

As a result of pressures of local companies, which are our competitors, in USA applied to Department of Commerce, the Department had taken a wrong and unjust decision. By means of our belief in law, we continued to struggle to protect interests of our partners and country. We have spent quite a lot time and money, but we have successfully concluded our rightful struggle.”

Lobby activities of the local manufacturers lead injustices

A group of local companies, which are competitors of Borusan Mannesmann in the market, applied and made a complaint to the US Department of Commerce in 2013. As a result of their application, Anti-Dumping was imposed on 9 countries, including Turkey, exporting Oil Well Pipes, and compensatory tax investigation was opened against Turkey and India.

In the first stage, the Department set the tax rate on Borusan Mannesmann as 0.31%, in the preliminary examination. This rate which is regarded as "0" as per the international rules did not impose any tax obligation on the company. However, as a result of lobby activities of the local manufacturers, a petition signed by over 150 Members of Parliament in USA was submitted to the Department of Commerce. Then, the Department raised the rate this time to 25.76%. The final decision of the Department concluded as compensatory tax rate at a level of 15.89% in July 11th, 2014.

Borusan Mannesmann which has been making a legal struggle appealed this decision in the International Trade Court. The interpretations and instructions of the court judge have obliged the US Department of Commerce to recalculate the tax rate. The tax rate at a level of 2.39% presented on February 22nd, 2016 by the Department was approved by the court and entered into force.

Borusan Mannesmann has won a new tender of 152 million dollars in USA -March 2015

In the past December, Borusan Mannesmann who won the tender of gas pipeline project of 130 million dollars, to be constructed in State of Texas in USA has announced to put its signature under a new project of 312 kilometers this time after this big success. Within the scope of new tender of 152 million dollars, won by Borusan Mannesmann, the gas flowing through the natural gas pipeline to be constructed in the State of Pennsylvania in USA will meet the needs of 7 million houses.

March 19, 2015, Istanbul

Borusan Mannesmann continuing its operations with the vision of being an international actor in the field of steel pipe has put its signature under a new and important success in the market of USA energy line pipes. Within the scope of new tender of 152 million dollars, won by Borusan Mannesmann, the gas flowing through the natural gas pipeline to be constructed in the State of Pennsylvania in USA will meet the needs of 7 million houses.

The project with the total project length of 321 km will be the largest project in terms of tonnage ever got by Borusan Mannesmann from USA up to today. The pipes with diameter of 76.2 cm and 106.7 cm will be manufactured in the Spiral Welded Pipe production facility of Borusan Mannesmann in Gemlik. The production will be made by its 2-step welding technology at the Borusan factory in Gemlik, with its cutting-edge technology, which is the one and only in Turkey and one of the 5 most advanced factories in the world. The pipes which will be commenced to be produced in the last quarter of 2015 will be shipped from Borusan Gemlik Port, dispatched to Philadelphia Port in USA, and from there carried to Pennsylvania overland. The entire shipment of the project is expected to be completed by August in 2016.

Semih Özmen, the President of Executive Committee of Borusan Mannesmann, who makes a statement about winning the tender, said the following:

As Borusan Mannesmann, we take a new step each passing day. As the employees of Borusan Mannesmann, all of us take great pride in such successes. We will continue earning similar successes in USA and world market. We made a strong enter into this market with Elba Express project in 2007. Since that day, we have been maintaining our success in this market with tenders we have won from several customers. In recent December, I announced you a pipeline project tender we won in USA again. Today, having got a new tender with high price indicates the USA market’s confidence in Borusan. This new project we have taken will be the third international project we put our signature over and over following the natural gas pipeline project in Texas, USA, along with TANAP (Trans Anatolian Natural Gas Pipeline Project) Gas Pipeline project of which the tender we have won within recent 6 months. The international references we have attained in major pipeline projects we have carried out up to the present, our experienced project management team and also of course our production competence ensure us to be the most preferred supplier in pipeline projects not only in Turkey and Europe but also in America.

Borusan Mannesmann is in the position of the one and only supplier of the leading pipeline operators of USA producing in Turkey.

Borusan Mannesmann has won the energy pipeline tender of $ 130 million in USA-December2014

As being one of the strategic growth areas of the company, Borusan Mannesmann has undertaken supply of pipes to be required for NGL Pipeline Project in length of total 449 km to be constructed within the boundaries of State of Texas in the United States of America, within the framework of the company’s operations for major energy line pipes they have positioned.

Within the scope of work of about USD 130 million of total contract price, the spiral welded steel pipes to be produced in the Gemlik facilities will be primarily dispatched to Houston/Texas Port in USA, and from there shipped to 3 different stock sites within the boundaries of the State of Texas. The production and shipment of pipes within the scope of project will be completed within the year 2015. In comparison with the similar tender they have won at home and abroad, the project in question will be the longest pipeline project with its 449 km, which they will make production up to today. Besides, Borusan Mannesmann will make the production of spiral welded natural gas pipeline of 24.5 meter for the first time.

As they announced through the Public Disclosure Platform earlier, Borusan Mannesmann has become one of the supplier of TANAP (Trans Anatolian Natural Gas Pipeline Project) project, and is also in the position of preferred supplied of major projects in overseas market which is intended to be an element of being a global steel pipe manufacturer.

Borusan Mannesmann Has Been One Step Closer to be a Global Company
December-2014

An endorsement of USD 130 million has been acquired since April 2014 in the factory established by Borusan Mannesmann to manufacture OCTG pipes and small-diameter line pipes in Houston, TX, USA. Borusan Mannesmann aims to be one of the first 5 manufacturers in USA territory which is one of the most competitive markets in the world.
December 11, 2014, Houston. An endorsement of USD 130 million has been acquired from sales since April in Baytown / Houston established by Borusan Mannesmann to manufacture pipes used in shale gas drill and energy lines in USA which is the largest shale gas market in the world. In line with the sound performance of the facility which was constructed 1 year before than planned and began to produce, Borusan Mannesmann aims to be among the first 5 companies in USA involving 10 major producers in this field.
Production facilities with cutting-edge technologies
The factory in Houston, which has been an important step to realize Borusan Mannesmann's vision to be a global actor in Turkey, was established with an investment amounting to USD 150 million. In the facilities equipped with the cutting-edge technologies of the sector, very special and high-quality pipes are produced for oil and rock gas drilling process.
The factory includes 4 facilities: Pipe Production Hall, Heat Treatment Facility, Examination Facility, and Threading Facility. For these facilities, machinery has been procured from 24 separate suppliers in different countries, and these devices are installed and put in place. Completion of these operations requiring great coordination and effort, and commencing production of the factory in a short period such as one year are assessed as great success by sector representative and experts.
The foundation of the factory laid in April 2013 commenced to produce April 2014. When proceeding into full capacity, the facilities will make production of 300,000 ton in a year, and 300 people will be employed. Currently there are 7 blue-collar and 14 Turkish people, 232 employees in total, in Houston factory.
Agah Uğur: “We aim to be among the list for the first five”
CEO of Borusan Holding Agâh Uğur told the following in his assessment of investment for USA:
“Borusan Mannesmann has been one step closer to be a global company from a local pipe producer in one of the most competitive markets in the world. The factory which was established from scratch following the acquisition of Vobarno Pipe Factory in Italy is a milestone in itself in our 70th establishment anniversary. Borusan Mannesmann will be one of the 5 major companies producing such kinds of special pipes in USA in the near future. A Borusan Mannesmann target for 70% of its endorsement from overseas sales in Turkey is no longer away from us.”
President of Executive Committee of Borusan Mannesmann Semih Özmen talked as follows: “The weight of shale gas in the world energy sector is increasing, and USA constitutes to be the biggest market in this field. Formerly we had had 40% of exports to USA. Now, we have reached further. We have accomplished to be a local producer in this market and arouse attention of the sector with our quality and technology. It is the proof that American Metal Market which is the respected publication of the American steel sector deems our company to be awarded with the "Technology Supplier of the Year" prize. I whole-heartedly celebrate all of our workmates who has contributed in this success. Borusan Mannesmann will continue to advance to its global targets with sound steps.”
The USA market is not strange to Borusan Mannesmann

The relationship of Borusan Mannesmann with the USA market began with exportation of pipes manufactured in Gemlik factory in 1988 and used in oil wells. The company which began to export oil line pipes to USA in 2000’s exported line pipes over 200,000 ton to this country between 2007 and 2009.

In the same period, the oil and natural gas drilling from shale was also developed, and this process has become more economic. While the demand for pipes is rapidly raised along with increasing of exploration and drilling operations, Borusan Mannesmann exported by producing 116 thousand tonnes of pipes for the USA market in 2011. In the same year, it was decided to establish a new factory from scratch having invested in USA, and for this purpose a land of 500 decare was purchased in Houston.

AMM announces winners of 5th annual Awards for Steel Excellence

American Metal Market presented a total of 15 Steel Excellence Awards to 13 companies and one individual at a dinner held Tuesday, June 17 in New York celebrating best-in-class initiatives that introduced real and quantifiable change to the steel industry.

The fifth edition of the Annual awards program celebrated the efforts of individuals and companies whose ingenuity, dedication and difference-making savvy distinguished 2014’s honorees from their peers over the past year.

Since the debut of the Steel Excellence Awards program in 2010  AMM has faced the same set of questions leading up to the Awards dinner: What constitutes high achievement in the steel industry? What distinguishes a steel organization or executive excellent? What does it take to be the best-in-class along the steel supply chain? The AMM Awards for Steel Excellence program addresses those questions on a  annual basis and, in the process, has steadily grown to the point that the Award is now  a  high-profile, much-sought-after honor within the industry.

This year as every year, a panel of distinguished judges called on a wide-ranging level of expertise to evaluate a record number of nominations using a point-based qualitative approach to identify demonstrated excellence among nominees drawn from mills, distributors and other service providers with operations in North America. The judges’ assignment:  Identify and evaluate advancements that have delivered real change to the steel industry..

AMM congratulates the winners, listed below, and salutes their best-in-class initiatives.

Best Innovation: Product – New Star Metals Material Sciences Corp.
New Star Metals Material Sciences Corp. (MSC), developed Light Weight (or Lightweight?) Steel Laminate, a lightweight metal composite that is both highly formable and weldable and can offer substantial mass savings versus monolithic steel. The MSC Lightweight Laminate solution addresses many of the concerns of making sweeping changes to vehicle design over a short period, reduces risk and minimizes compromising performance.

Best Innovation: Process – ArcelorMittal
Steelmaker ArcelorMittal is transforming automaking through such advances as the door ring outfitting Honda Motor Co.’s 2014 Acura MDX. The vehicle’s hot-stamped, laser-welded door ring, a three-year innovation achieved using ArcelorMittal’s Usibor 1500—a patented aluminum-silicon-coated steel product with a high ultimate tensile strength—and ArcelorMittal Tailored Blanks’ innovative laser-welded blank technology, achieved an optimal balance in weight reduction, safety, performance and cost.

Best Mergers & Acquisitions – Reliance Steel & Aluminum Co.
Reliance Steel & Aluminum Co. made its largest acquisition to date last year when it acquired Metals USA Holdings Corp., a move that company officials said was designed to reinforce Reliance’s leadership position in the metals service center industry. The acquisition, valued at about $1.24 billion, added 48 service centers across the United States to Reliance’s stable of operations.

Best Operational Improvements – Severstal North America:  Columbus
After recently making assessments of several processes at its Columbus, Miss., plant, Severstal North America Inc. implemented a number of improvements to address supply chain, chemistry, safety and environmental issues. For scrap purchase and use optimization, the company began using a value-in-use model analysis to smooth out highs and lows of purchasing scrap and to insure more consistent in its buying practices.

Technology Provider of the Year – Borusan Mannesmann Pipe USA, Inc.
Turkish steel pipe manufacturer Borusan Mannesmann — with U.S. headquarters in Houston — built a $150-million electric-resistance welded pipe mill and accompanying heat treatment plant in Baytown, Texas, the first Turkish-owned plant in the United States. The company began building the new state-of-the-art ERW rolling mill last year. Construction of the greenfield mill was completed in record time, with the “ergonomically sensitive” project beginning in April 2013 and the first product rolling off the production line in March 2014.

Financial Services Provider of the Year – Bank of America Merrill Lynch
Bank of America Merrill Lynch has a long history of providing asset based and cash flow financing for middle market to large corporate companies in the steel industry, both domestically and globally, along with other bank products and services such as treasury solutions, foreign exchange, etc. Its capital markets and investment banking capabilities provide its clients access to the private placement, institutional term loan, high yield and convertible debt markets along with M&A advisory services. Its commodities risk management offerings include hot-rolled coil, iron ore, natural gas, power, diesel and base metals such as nickel. . And, on the equity capital markets side, Bank of America Merrill Lynch was a bookrunner on the initial public offering of TMS International Corp., the follow-on offerings for U.S. Steel Corp. and Steel Dynamics Inc. and the convertible offerings for Steel Dynamics and AK Steel Corp.  and it provides equity research coverage for many companies in the industry.

Information Technology Provider of the Year – Schneider Electric
As an expert in mining, minerals and metals, Schneider Electric Industries SAS provides solutions to maximize production, increase overall efficiency and optimize asset utilization. Schneider Electric’s Energy Management Information System (EMIS) for the iron and steel industry helps steelmakers accomplish this through an integrated energy/production system that delivers monitoring, data analytics and decision-making. It can help reduce energy-specific consumption through integration of power, control and energy efficiency

Environmental Responsibility/Stewardship – AEP River Operations LLC
AEP River Operations LLC executives said the company’s environmental objectives can be summed up in two words: zero harm. The company has made a commitment to protect and enhance the quality of the environment as it conducts its business. AEP River Operations complies with all applicable environmental laws, regulations and requirements, and audits its performance regularly to verify compliance

Logistics/Transportation Provider of the Year – AEP River Operations LLC
As a highly coordinated team of shore-side and vessel teammates, AEP River Operations LLC offers pace-setting service in barge transportation of dry bulk commodities and project cargo throughout the inland waterways. Historically, AEP River Operations has transported about 70 million tons of dry bulk cargoes annually. As a leader in the river transportation industry, its fleet of nearly 3,000 hopper barges ranks as one of the newest and most dependable in the industry.

Scrap Company of the Year: Small/Midsize Company – Columbus Scrap Material Co.
Columbus Scrap Material Inc. is a fast-growing provider of ferrous and nonferrous metal recycling services with five facilities in Mississippi and Tennessee. Its customers are primarily industrial manufacturers ranging in size from Fortune 500 accounts to regional and local businesses, as well as daily peddler customers, while its consumers include multibillion-dollar foundries and steel processing facilities.

Scrap Company of the year:  Large Company – Scrap Metal Services LLC
Scrap Metal Services LLC is a supplier of ferrous and nonferrous scrap commodities to both domestic and international consumers. SMS has seen revenue growth of more than 270 percent over the past five years. The growth in number of employees and other measures also has been significant, and company forecasts for the next five years are bullish.

Service Center:  Small/Midsize Company – Berlin Metals LLC
Berlin Metals LLC uses an annual, formal customer satisfaction survey as its basis for setting improvement objectives. The 2013 survey showed that 98 percent of respondents would strongly recommend the company, with 95 percent saying the company had earned their support. Berlin Metals requires front-end involvement of mill sources for each specification and application to provide the foundation for advanced product quality planning to ensure that initial orders with new accounts perform as required.

Service Center:  Large Company – Steel Warehouse Co.
Steel Warehouse Co., established in 1947, is a family owned service center specializing in high-strength heavy-gauge, pickling and cut-to-length temper passed hot-rolled steel sheet and heavy-gauge hot-rolled steel slit coil. It handles precision slitting and blanking for cold-rolled and coated steel, and operates a narrow strip cold mill that produces cold strip product. The company, a producer of U.S. Army-approved SWC Shield armor, operates several plants in Cleveland; Houston; Calvert, Ala.; Portage and South Bend, Ind.; the Quad Cities; Chattanooga and Memphis, Tenn.; and Monterrey, Mexico.

Steel Producer of the Year – Nucor Corporation
During the past year, Nucor Corp. made considerable progress on its strategy to enhance the company’s competitive position in a changing global steel industry and to expand its penetration of the automotive, energy, transportation, agricultural and industrial equipment markets. To maintain its competitive advantage, Nucor embarked on projects designed to give it greater control over its raw material costs and allow it to produce a larger variety of higher-margin products. Since the last cyclical peak in 2008, Nucor has invested $8 billion in projects that are part of this strategy. The company achieved a major milestone in the execution of its strategy with the start-up of its $750-million direct-reduced iron (DRI) plant in Louisiana. The facility, the largest DRI plant in the world and the first operating in the United States since 2009, is yielding more tons per hour than any DRI plant in the world.

Industry Advocate – Michelle Galanter Applebaum
Michelle Applebaum founded and served as Managing Partner of Steel Market Intelligence Inc., a five-member research and consulting company in Chicago after serving the industry over a distinguished career as a steel analyst. Michelle held positions as a Mining Analyst of Citigroup CIB and as Research Analyst of Citigroup Inc, Research Division. Prior to this, she spent over 20 years at Salomon Brothers Inc., Research Division. During her years on Wall Street, she was the top-rated Steel Industry Analyst according to the Institutional Investor All-Star poll for a dozen years. She is regularly quoted in publications such as The Wall Street Journal and The New York Times and has made frequent appearances on business programs on CNN and CNBC. She holds an M.B.A. in Accounting and Finance from the Kellogg School of Business and a B.S. in Economics from Northwestern University.

Borusan mill may start ahead of schedule

CHICAGO - Construction of Borusan Mannesmann Boru Sanayi ve Ticaret AS’ oil country tubular goods (OCTG) and line pipe mill in Baytown, Texas, is ahead of schedule.

Buddy Brewer, chief executive officer of Houston-based Borusan Mannesmann Pipe US Inc., told AMM Sept. 6 that threading operations should be completed by late November or early December, with the pipe mill potentially running ahead of a planned April 2014 start up. Heat-treatment operations are officially slated to get under way in July 2014, "but we expect it to be well ahead of that," he said.

The $150-million, 300,000-ton-per-year facility had been expected to be completed in the third quarter of 2014.

The project is moving along thanks to an "outstanding performance" by employees and contractors as well as good weather, Brewer said. "It’s been an extraordinarily quiet tropical storm season so far and a dry summer. Texas is still in drought conditions. That’s terrible for farmers and everyone else, but it’s great for construction."

The Baytown mill will produce OCTG in American Petroleum Institute (API) grades N80 through Q125, as well as in custom-engineered grades, and is expected to displace about 85 percent of Turkey’s exports of the products to the United States.

Istanbul, Turkey-based Borusan Mannesmann was eyeing Texas for the new mill months before Turkey was targeted in a broad trade petition filed by domestic producers against imported OCTG.

Congressman backs Borusan in dumping probe

NEW YORK — A congressman has written to the U.S. International Trade Commission (ITC) asking it to consider Borusan Mannesmann Boru Sanayi ve Ticaret AS’ $150-million investment in a new oil country tubular goods (OCTG) mill in Baytown, Texas, during a dumping and subsidy trade case against Turkish producers.

"I appreciate any consideration you can grant in this example of foreign investment and job creation," Rep. Gene Green (D., Texas) said, noting that the project would be "beneficial for ... Texas and for the U.S. by creating more private-sector jobs and increasing local, state and federal revenues."

Borusan’s proposed plant, expected to start production in 2014, will employ more than 300 people and use domestic steel, according to Green.

A source close to Borusan said the company was surprised at the trade complaint against Turkey. "They’re 100-percent confident that they’ve not been dumping pipe. They’ve played by the rules; they’ve played fair from the very beginning. They don’t receive any kind of subsidies," he said, adding that the Turkish company’s pricing was "absolutely top tier of the imports."

Borusan, which accounts for the most significant share of Turkish OCTG shipments to the United States, has already faced some challenges from the filing, according to the source. "It’s time and resources that they could utilize in far better places than (Washington)," he said.

The case could change the Istanbul-based company’s plans for its new mill, the source said. For example, while Borusan previously was looking to supplement its domestic offerings with some imported material once the mill was up and running, it is now considering bringing additional production capacity to the United States. "That’s not what they wanted," he said.

Borusan Mannesmann Strengthens Its Market Position in North America

Turkey’s leading steel pipe manufacturer, Borusan Mannesmann, will invest 150 million USD in the United States to establish a steel pipe manufacturing plant to cater to the energy sector. This plant is set to start production in 2014 and will make Borusan Mannesmann a global player in the industry.

December 24, 2012, Istanbul. Borusan Mannesmann, one of the foremost manufacturers of the European steel pipe industry, prepares to make a strategic investment in line with its vision of becoming a global player. Supplying the U.S. market with pipes used in the energy sector for several years, Borusan Mannesmann now aims to become a local manufacturer in order to be closer to the market and its customer base.

To this end, a pipe manufacturing plant with an annual production capacity of 300,000 tons will be established in the United States. With an investment of 150 million USD, the plant will focus its output on OCTG and ERW line pipes. The target revenue for the US-based company is estimated at 500 million USD.

Scheduled to start production by mid-2014, the plant is designed to produce the thick-walled and high-strength pipes suitable for state-of-the-art, advanced OCTG technology used in „shale gas‟ production. Final decision on the location of investment is not finalized yet but Texas and Oklahoma are the leading states to attract the investment through their incentive programs. The facility will be built on nearly 125 acres of land and provide 350 people with employment when it becomes operational.

A first in the Steel Pipe sector

Agâh Uğur, Borusan Holding Group CEO, comments on the subject as follows:

“Borusan Mannesmann is among the leading players of steel pipe market in Europe. One of its top goals is to become a global player in the pipe industry. This investment is not only a way to insert Borusan Mannesmann into the U.S. market; it is also the first step to becoming an international manufacturer.

As a Turkish firm that has made a name for itself through its success in exports, Borusan Mannesmann now strengthens its global presence with an investment in the competitive, yet widely recognized market, of the United States.

Borusan Mannesmann grows and expands by focusing on production for high value added sectors such as energy and automotive. In a first for the Turkish industry, we are now becoming the first Turkish company to invest in the steel pipe sector in the United States with this venture. This is our second overseas investment after our automotive pipe manufacturing plant in Italy. We have a strategic and long-term view of the American market due to its size and quality approach. Favorable changes to the energy policies in the United States, as well as the advancements in the shale gas technology, were the factors that hastened our investment decision at this time of global recession."

Underlining that, "OCTG and line pipes are a promising future market," Borusan Mannesmann , Board Chairman Semih Özmen added:

"Investing in a product that requires the use of advanced technology such as OCTG pipes requires significant know-how and expertise and our new CEO, Buddy Brewer, is among the few individuals with the experience and knowledge to carry this through. Not only that, Borusan Mannesmann is among the few firms with the strength to make such an investment."

Successful rise in the U.S. market

To date, Borusan Mannesmann has realized many oil and natural gas pipeline projects in Turkey, Central Europe, and North Africa. The Elba Express and Line 300 natural gas pipeline projects brought the company prestige in the U.S. market. Over the last three years, Borusan Mannesmann has become one of the largest international companies that export to the United States the pipes used in oil and natural gas exploration and extraction.

Thanks to breakthroughs made in the technical and commercial fields, Borusan Mannesmann has increased exports from 90 million USD in 2009 to 184 million USD in 2012. With 40 percent of its exports currently destined for the United States as well as this noted significant increase, Borusan Mannesmann is well on its way to accomplish its goal as a strong local and international player in the market.

BIPO PERFORMS FOR VAN

Borusan Culture and Arts will donate the proceeds of Borusan Istanbul Philharmonic's (BIPO) November 17th concert with pianist Gülsin Onay towards the search and rescue works of the Van earthquake which occurred on October 23, 2011 Sunday.

The proceeds of BIPO's November 17 concert at the Lütfi Kırdar ICEC will be donated to the Chairmanship of Emergency and Disaster Management of the Prime Ministry's Van Earthquake Relief Fund thereby allowing all the audience who bought tickets to contribute to this humanitarian action.

Ahmet Erenli, General Manager of Borusan Culture and Arts said:

"We share the heartfelt pain our citizens in Van are suffering. May the deceased rest in peace, their loved ones endure this calamity and the injured recover from their wounds in the soonest period possible. While contributing to the cultural life of our city and country, we also wish to be a part of the humanitarian efforts spent towards the recovery of our citizens in Van. It is for this very reason that the Borusan Istanbul Philharmonic will be on stage on November 17, 2011. The proceeds will go to the relief fund to be used for the earthquake victims. We wish them patience and endurance and genuinely hope the city will be reinstated to a habitable environment soon."

GÜLSİN ONAY PLAYS saygun

Date:17 November, 2011, Thursday

Venue: Lütfi Kırdar Internatioanl Convention and Exhibition Centre

Time: 20.00

Ticket Prices: 100 / 70 / 50 / 30 TL

Program: Sascha Goetzel conductor

Gülsin Onay piano

Mussorgski: Kovantchina operası Introduction (Rimsky-Korsakov)

Saygun: Piano Concerto No.1, Op.34

Bartók: Concerto for Orchestra, BB 123, Sz. 116

BORUSAN HOLDING SIGNED THE 2°C COMMUNIQUÉ AGAINST GLOBAL WARMING

Borusan Holding signed the 2°C Communiqué, which calls governments to action to create solutions at international climate change negotiations and to take necessary measures to transition to a green economy.

Commenting on the Communiqué, Borusan Holding CEO Agah Uğur pointed out that climate change is one of the most important problems the world has come face-to-face with and that Borusan as a corporation will take place in every aspect of the fight against climate change.

Borusan Holding took its place among pioneering global companies, by becoming one of the first signatories of the 2°C Communiqué within the scope of its sustainability approach.

Leaders of the business world from different industries, led by "Corporate Leaders Network for Climate Action, participated in the preparation of the Communiqué, of which the 5th edition was published this year. The Communiqué was prepared in 2007, before the United Nations Climate Change Conference, for the first time and received great support from the business world as well as non-governmental organizations. Since 2007, the revised Communiqué was published just before the United Nations Climate Change Conferences that take place every year and it won support from an increasing number of global signatories each time.

With the Communiqué, leaders of the business world are stating the great importance they give to climate change, sustainable development and green economy. In addition, the actions that will ensure green development are detailed in the Communiqué and it's brought to attention that the global warmth increase should be kept to 2°C maximum.

Stating that they give great importance to sustainability and that they will participate in every aspect of the fight against climate change, Borusan Holding CEO Agah Uğur commented on the subject:

"Climate change is one of the most important problems in the history of humanity. If public and private sector authorities don't take the necessary precautions in time, humanity's sustainability will be in danger. We believe the parties coming to an agreement at the UN Climate Change Conference which will take place in Durban will contribute to the successful ending of Rio + 20 meetings."

Global warmth increase should be limited to 2°C

2°C Communiqué points out that according to International Energy Agency's (IEA) data, global carbon emissions will reach the highest level ever recorded and stresses that if things continue as they are, the 2°C yearly increase limit will be exceeded. The Communiqué also puts forward its will of working with governments in developing solutions against climate change and calls governments to bring to life the following operations:

  • Collaboration is needed on the subject of climate change. The decisions made at the Durban meeting provide an important opportunity to achieve consensus at the Rio+ 20 meeting. This collaboration will also start the flow of funding.
  • Creating effective market mechanisms to determine carbon prices will contribute to achieving long-term stability. Governments need to implement national market based solutions.
  • Urgent funding is needed for the low-carbon and climate-resistant development model. The funding of the transition period is important because countries prioritize poverty, development and creating low-cost new business areas when it comes to using resources.
  • The innovation efforts toward new technology, ability and processes need to be encouraged. According to International Energy Agency's (IEA) study, in order for carbon emissions to be reduced by 50 % by 2050, governments need to support R & D work and the proliferation of new technologies, starting today.
  • Encouraging energy and resource efficiency will help fast and cost-effective reduction of greenhouse gas emissions and it needs to be a prioritized goal.
  • Precautions should urgently be taken to protect and increase current forest areas.
  • Governments need to develop policies and do planning with a holistic point of view in order to provide infrastructure services that are resistant to climate change and with low carbon.

Borusan Group and Sustainability

In addition to having a comprehensive corporate social responsibility program on the subjects of arts, culture and education, Borusan Group:

  • Signed UN Global Impact in 2006,
  • Became the second member of World Business Council for Sustainable Development (WBCSD) in Turkey in 2010,
  • Was one of the first 3 companies to sign the Cancun Communiqué in 2010,
  • Prepared a sustainability report in 2010, which was classified as an exemplary report by the UN,
  • Has been working to create an inventory of the greenhouse gas that its operations create,
  • Has been executing projects to increase energy efficiency,
  • Has made it a principle to respect the environment, nature and habitat in all its operations.

BORUSAN CONTEMPORARY ATTRACTS A STREAM OF VISITORS

Borusan Contemporary, opened by the Minister of Culture and Tourism Ertuğrul Günay on Saturday, September 17th, visited by around 2000 guests on its first weekend. Art lovers toured with interest the 'Seven New Works' exhibition, which included video works of seven artists, and the 'Segment #1' exhibition, bringing together selected works from the Borusan Collection. Perili Köşk with its historical architecture, and the unique examples of contemporary art can be visited free of charge on the weekends until 1 October 2011.

Turkey's first office museum Borusan Contemporary attracted great attention from art lovers. Around 2000 guests including the invited guests for the opening visited 'Perili Köşk' (the Haunted House or the Kiosk with Fairies), one of the leading examples of Istanbul's cultural heritage, hosting Borusan Holding's headquarters since 2007.

Borusan Contemporary is a hotspot for foreign art professionals

İKSV Bienal VIP groups, including collectors, gallery owners, museum directors, curators and artists who came to İstanbul for the Bienal visited Borusan Contemporary. Collectors and art lovers who came to İstanbul with 'Art Travel' art tours and the collector guests of one of Switzerland's leading investment consultancy companies, Quilvest, were also among Borusan Contemporary's guests.

The New York Times Europe recommended Borusan Contemporary

The New York Times Europe, one of world's leading publications, carried İstanbul's colorful arts & culture life, which became more alive with Bienal, to its pages. The news story mentioned that 4 thousand art professionals and 700 journalists from all over the world came to İstanbul. And it emphasized that the office museum Borusan Contemporary is a must-see location within the scope of Bienal.

Borusan Contemporary opens with two different exhibitions

The "Seven New Works" exhibition, which included video art by Esra Ersen, Burak Arıkan, Gülsün Karamustafa, Cevdet Erek, Nasan Tur, Ergin Çavuşoğlu ve Aslı Çavuşoğlu attracted great attention. The works that are displayed at the exhibition drew attention by showing how diverse and different paradoxes are. The exhibition displays how a global content isn't possible in art just like in daily life.

Selected from the Borusan Collection, works by artists of different generations and cultures took place at the "Segment #1" exhibit. Visitors got the chance to observe the works at different parts of the building and in offices. They observed the best examples of modern art as well as Perili Köşk's unique architecture. Bringing up the different affinities of modern art, "Segment #1" drew attention by displaying a multi-voice exhibition model.

MINISTER OF CULTURE AND TOURISM ERTUĞRUL GÜNAY OPENS BORUSAN CONTEMPORARY

Borusan Holding's headquarters Perili Köşk is officially opened as Turkey's first office museum on weekends. Minister of Culture and Tourism Ertuğrul Günay opened the museum. The business and art world, as well as the press, attended the event.

Borusan Holding's headquarters Perili Köşk (the Haunted House or the Kiosk with Fairies) was transformed into Turkey's first office museum in the field of contemporary art. The Museum, which is named Borusan Contemporary, was opened by the Minister of Culture and Tourism Ertuğrul Günay. Over one thousand guests from the business and art worlds attended the event, including Semahat Arsel, Ömer Koç, Faruk Eczacıbaşı,Tezcan Yaramancı, Hamdi Akın, Erol Aksoy, Murat Özyeğin, Serra Tokar, İnci Aksoy, Erol Evgin, Dilek Hanif, Siren Ertan Çarmıklı, Jale Yılmabaşar.

Minister of Culture and Tourism Ertuğrul Günay toured the museum at the opening event, hosted by Borusan Holding Chairman Ahmet Kocabıyık. At Borusan Contemporary, "Segment #1" exhibition, which included examples of elite contemporary visual arts selected from the Borusan Collection, and the "Seven New Works" exhibition, bringing together the work of 7 artists, won the admiration of the guests.

Borusan Contemporary will operate as an office space during the week and will be open for art lovers' visits on the weekends. The museum can be visited free of charge until 1 October 2011.

TURKEY’S FIRST OFFICE MUSEUM

The 100-year-old Yusuf Ziya Paşa Mansion in Rumelihisarı which is home to the headquarters of Borusan Holding becomes Turkey's first office museum in contemporary art field under the name of 'Borusan Contemporary. Perili Köşk will serve as an innovative exhibiton space for the public at weekends while continuing its function as office space on weekdays.

Borusan Contemporary Art Collection, one of Turkey's prominent corporate collections, will also be exhibited in the office museum regularly. As a parallel event to the 12th Istanbul Biennial, Borusan Contemporary will be open on September 17th with two exhibitions, ''Seven New Works and Segment #1''.

Borusan is committed to pursue its cultural investments with the aim of contributing to the public's recognition and awareness of contemporary art.

The Yusuf Ziya Paşa Mansion, one of the most prominent examples of Istanbul's cultural heritage with its unique architecture, and also Borusan Holding's Headquarters since 2007, will be transformed into an office museum under the name ''Borusan Contemporary''. The Yusuf Ziya Paşa Mansion was built in 1910 and in time the building became colloquially known as Perili Köşk. Today, it is to become a global art center.

Borusan Contemporary Art Collection which is the only member of the Association of International Corporate Collections of Contemporary Art (IACCCA) from Turkey, is preparing to welcome its visitors for the first time with its most exquisite examples of contemporary visual art.

During the press conference held for the opening of Borusan Contemporary, Mr. Ahmet Kocabıyık, the Chairman of Borusan Holding made the following statements:

''Borusan Contemporary will have two basic missions: First to share the Borusan Contemporary Art Collection with the public, and secondly to increase people's interest in contemporary art in Turkey. The most important feature of our collection is that it includes examples of new media art. As in Borusan, we work with the possibilities brought to us by contemporary tendencies in all fields, we tried to add the newest and the most experimental pieces of contemporary art to our collection. We are pretty much aware of the risks involved in investing in the experimental works of today's artists, but this is also an extension of our business life principles. Nevertheless, this risk gives us the opportunity to get closely acquainted with the experimental features of a young and different form of art as an outcome of pursuing the values of our time. Furthermore, we want to share our artistic experience with our nation especially with young people. We are very pleased to have this opportunity.''

Agâh Uğur CEO, Borusan Holding continued as follows:

"It sounds more accurate to say that we decided on the foundation of Borusan Contemporary together with all Borusan employees. We took our employees' opinions when the idea of transforming Perili Köşk into an office museum first came up and we discovered that they would be very excited to work in an office museum environment. Also most of our employees joined in the art volunteers program for office museum. Thanks to the support of Borusan family, we are very happy to launch another social responsibility project in the contemporary art field. ''

Office on weekdays, museum at the weekend!

Perili Köşk will function as Borusan Holding's Headquarters on weekdays and Borusan Contemporary at the weekend. Selections from the collection will be exhibited in the office environments and there will be gallery spaces for temporary exhibitions. Annual schedule will include 3 temporary exhibitions inside Borusan Contemporary where there is also a shop and a café for the visitors.

Education inside the office museum

Educational programs that aim at adults and children of all ages will be planned in parallel with the exhibiton schedule. The museum's multidisciplined and multidimensional approach will be reflected with the involvement of various curators in the process.

Opening with two new exhibitions

The museum's opening is planned as a parallel event to the 12th İstanbul Biennial on September 17, 2011 and the opening exhibitions will be Seven New Works, a temporary exhibition, and Segment #1, presenting works selected from the Borusan Contemporary Art Collection.

Seven New Works is curated by Mario Codognato and Sylvia Kouvali while Segment #1's curatorship is undertaken by Dr. Necmi Sönmez. Both exhibitions can be visited until December 11, 2011.

Seven New Works

Video works by Esra Ersen, Burak Arıkan, Gülsün Karamustafa, Cevdet Erek, Nasan Tur, Ergin Çavuşoğlu and Aslı Çavuşoğlu commissioned by Borusan will be exhibited in the Seven New Works exhibition. Latest works by the artists each dealing with a diverse range of topics and issues, reflect on the multiplicity of possibilities and contradictions. The exhibition illustrates the point that art, like contemporary life, cannot reach a unity of expression and universality of content, but rather exhibits the territoriality and segmentation of the ray of interest and investigation that exists.

''Segment #1''

In Segment #1 installed in the other parts and office spaces of the building, pieces by artists from different generations and cultures included in the Borusan Collection will be exhibited. Presenting a multivocal exhibition model, Segment #1 revives the current arts' different tendencies.

Borusan Contemporary Art Collection

Dating back to the 1980s, the collection focused on prominent artists of the 90s and leading representatives of Turkish modern art such as Bedri Baykam and Kemal Önsoy. The collection was mainly composed of paintings and printings, whereas at the beginning of the 21st century, with its new center at Perili Köşk it gained a more international dimension and it is growing steadily.

Today Borusan Collection comprises approximately 600 artworks in diverse media such as oil paintings, sculptures, video art, installations, new media, prints, light art and photography. Printings by Jim Dine, Donald Judd and Sol LeWitt, the light art examples by Brigitte Kowanz, Keith Sonnier, François Morellet and Doug Aitken, paintings by Peter Zimmermann, Gerwald Rockenschaub and Markus Linnenbrink, sculptures by Liam Gillick, Beat Zoderer, and Martin Walde are all part of the collection. In the new media field, works of Zimoun, Rafael Lozano-Hemmer, U-Ram Choe, Daniel Rozin and Daniel Canogar stand out in the collection. Monika Bravo, Marina Zurkow, Kutluğ Ataman and Manfred Mohr come into prominence with their video works.

Turkish contemporary art is represented in the collection by leading names such as Abdurrahman Öztoprak, Bülent Evren, Ekrem Yalçındağ, Ardan Özmenoğlu, Erol Akyavaş and Nuri Bilge Ceylan.

THE ANCIENT CITY OF EPHESUS WILL JION THE WORLD LEADERS OF TOURISM

The Ephesus Foundation, in the process of being established under the guidance of Borusan Holding, aims to contribute to the development of the Ephesus ancient city and to its international promotion. In order to promote the Foundation, which is aimed to become active soon, a meeting, hosted by Ahmet Kocabıyık, took place in Ephesus. Ertuğrul Günay, the Minister for Culture and Tourism, Dr. Beatrix Karl, Republic of Austria Federal Minister for Science and Research participated to the meeting, as well as Sabine Ladstatter, the academician who conducts the digging at the site and Bülent Eczacıbaşı, Chairman of Eczacıbaşı Holding and Founding Member of the Foundation Board.

May 17, 2010, The ancient city of Ephesus, with its unique history - going back more than 10,000 years - and geographical position is among the most important cultural and historical assets of not only Turkey, but of the world. New projects like Terrace Houses and recently increasing promotion efforts – albeit it is a slow process – played their part in the increasing popularity of Ephesus Ancient City, which is pushing its limits to go beyond the figure of annually 2 million visitors. The Ephesus Foundation, the establishment process of which continues under the guidance of Borusan Holding, aims to increase the pace of archaeological digs in the ancient city and to support its promotion at the international level in order to bring the Ephesus Ancient City up in the list of world’s leading tourism sites.

On the occasion of starting Ephesus Foundation’s activities, a meeting, hosted by Ahmet Kocabıyık, the Chairman of Borusan Holding, took place. Ertuğrul Günay, the Minister for Culture and Tourism, Dr. Beatrix Karl, Republic of Austria Federal Minister for Science and Research participated to the meeting, as well as Sabine Ladstatter, the academician who conducts the digging at the site and Bülent Eczacıbaşı, Chairman of Eczacıbaşı Holding and Founding Member of the Foundation Board.

At his opening speech, Ahmet Kocabıyık, who initiated the project, laid down the purpose of the Foundation as making Ephesus a showcase to present to the world the modern applications of the science of archaeology.

Kocabıyık said:

"In addition to restoration and digs in various fields, enriching the experience of tourists is also among the targets of our Foundation. We have prepared a comprehensive initiative and action plan ranging from alternative trekking programs to night tours and from social and cultural activities to efforts aiming to increase the interest in Selçuk. We sincerely believe that this initiative will increase the pace of digs in the Ephesus Ancient City, contribute to the international promotion of this site, which will attract sponsors, and shape the infra structure, which will help the tourists to have an unforgettable experience at Ephesus."

Describing the Ephesus Foundation’s mission as “creating funds in order to develop and protect the ancient city and presenting it to the world”, Ahmet Kocabıyık continued:

"For this project, which is very important for our country, we expect the support of everyone, whatever the size of their contributions. Reaching our target and fulfilling our mission is possible only if the society owns this project in the widest fashion possible. Ephesus is one of the most important ancient cities of the world. The Ephesus Foundation aims to increase awareness about this important cultural heritage of world. I would like to express my gratitude to Mr. Bülent Eczacıbaşı, Chairman of Eczacıbaşı Holding, who worked hard for the establishment of the Foundation and is here today with us."

Kocabıyık concluded his speech as below:

"The Ephesus Foundation aims to support our country’s cultural heritage and potential for tourism, as well as to create value for the platform of international archaeology. We believe that as the Ephesus Ancient City, with its historical value, becomes a center of attraction for the world population, its importance as a bridge in cultural and economic co-operations will also increase. I would like to thank to the Honorable Minister Karl and Mr. Landstatter, as well as our other Austrian friends who helped to unearth Ephesus’ cultural value."

The Director of Austrian Archaeology Institute, Associate Professor Sabine Ladstatter gave information about the work done up to now. Pointing out the fact that Ephesus is one of the few cultural treasures of world, Ladstatter continued; "The Ephesus Foundation’s multi dimensional support approach will help to attract more international interest on this cultural treasure."

The board will get sponsors from all over the world

Among the founders of the Ephesus Foundation are Borusan Holding, Eczacıbaşı Holding and Doğuş Holding as corporations and Ahmet Kocabıyık, Zeynep Hamedi, Nükhet Özmen, Alexander E. Gertner and Yasemin Pirinçcioğlu as individuals.

The highest organ of decision for the Foundation is the Board of Trustee’s, formed by founders. It appoints the 9 - member Board. The members of the Board are Borusan Holding Chairman Ahmet Kocabıyık, Eczacıbaşı Holding Chairman Bülent Eczacıbaşı, Doğuş Holding Chairman Ferit Şahenk, Borusan Culture and Arts Chairman Zeynep Hamedi, M&D Gertner GmbH Chairman Alexander E. Gertner, VIP Tourism Chairwoman Yasemin Pirinççioğlu, Director of Austrian Archaeology Institute and Associate Professor Sabine Ladstatter, Chairman of the Friends of Ephesus Association Dr. Albert Hochleitner and the Manager of Turkey Ephesus Museum Cengiz Topal.

The local founders will be meeting the expenses of the Foundation for the first year. In the coming years, it is planned to finance a significant part of its activities through international donations. One of the main duties of the Foundation Committee and Board is to use personal contacts in order to reach those people who are interested in Ephesus Ancient City and turn them into sponsors.

5 main areas of activities

The activities of the Foundation can be summarized under 5 headlines.

Financial support: The Foundation will support archaeological digs and provide financial support for the Museum. It is aimed to provide an unforgettable experience for the tourists visiting the archaeological site.

Guidance to the process of digging: The Foundation will add pace and help to accelerate the partially completed digs and the digs at the fields closed to visits.

Projects and plans will be prepared to complete the uncompleted digs under the guidance of local and international experts and necessary precautions will be taken to open these fields for visits during the digs.

Library and Archives: The Foundation will prepare a digital archive, which will include all the researches on the ancient city until now and all the digs done so far in Ephesus. It is also planned to prepare a library of copies of all the books and magazines published so far on Ephesus in Turkey or abroad.

Research: The Foundation will be supporting academic researches on the history of Ephesus, its architecture and different lifestyles existed in the ancient city at different historical periods.

Promotion: Promotion will be mainly conducted through web - based activities. These will include direct mailing to targeted groups, shopping on Internet and sending bulletins on the activities in the ancient city. International symposiums will be organized in order to increase consciousness on Ephesus. The Foundation will also be organizing cultural activities like concerts and exhibitions in different places and it will promote Ephesus actively.

Through these activities new sponsors will be found for Ephesus and the ancient city will climb up towards the top in the list of world’s tourism leaders.

Borusan Mannesmann INITIATED A NEW INVESTMENT FOR LINE PIPE MARKET

Borusan Mannesmann (BMB) has initiated an investment plan to commission a new production facility with an annual production capacity of 250,000 tons in Gemlik/Turkey. The new facility will produce large diameter line pipes and expected to be commissioned by 2011 with an investment cost of 90 million USD. The new investment will put BMB into a stronger position in the large diameter line pipe industry.

January 2010, Istanbul. Borusan Mannesmann (BMB), one of the leading European producers in the welded steel pipe industry, initiated a new investment plan, targeting current and future demand potential in large diameter line pipe industry. BMB will establish a new facility with an annual production capacity of 250,000 tons at Gemlik campus, where the company’s biggest production capacity is already located. The new facility, expected to cost about 90 million USD, will manufacture API grade large diameter line pipes to be used in energy industry.

The investment has been designed to be a state of art production facility with respect to production technology, capability, flexibility, plant lay-out. Additionally, the location of the investment, Gemlik/Turkey, is strategically important as the new facility will be adjacent to Borusan Port, which will bring competitive advantage in terms of both inbound and outbound logistic costs as well as efficiency improvement in inventory management.

BMB is now stronger in the large diameter line pipe market

The strong demand potential stem from oil and gas distribution projects in target markets combined with the strong brand recognition and market positioning of BMB has led to the investment decision.

Commenting on the new investment, Mr. Bülent Demircioğlu, Chairman of The Board says:

"One of the strategic targets of Borusan Mannesmann is to invest in high end product segments, thus increasing the value creation for our stakeholders. In order to utilize current and future market opportunities, we have decided to make an investment for line pipe market. In our target markets, being Turkey, Europe, North Africa, Middle East and America, many important projects are on the agenda and in scope of BMB. Nabucco and Southern Stream projects are the biggest ones among our targeted projects list. We have reinforced our position in this sector by being a reliable pipe supplier in many important projects such as Baku-Tbilisi-Ceyhan, Shahdeniz, Blue Stream. As a result of this investment decision we will become stronger and more competitive among our national and international peers. Our investment decision, in a time of global crisis, shows our trust and commitment to the promising future of our company as well as our country, Turkey"

Borusan Mannesmann is very experienced in international markets

Borusan Mannesmann has already undersigned important pipe line projects. BMB gained very important experiences in the production of high quality gas and oil line pipes by taking part in important projects such as Baku-Tbilisi-Ceyhan, Shahdeniz, Blue Stream, Iran-Turkey natural gas pipe line. Building on this credible reference list, BMB has successfully penetrated into Iran, Algeria, Europe and recently to USA markets.

BMB has successfully completed the Elba Express project in February 2009. The agreement with a contract value of 170 million USD, was signed at the end of 2007 and BMB was chosen as the “sole pipe supplier” for the delivery of FBE coated large diameter spiral pipes for Elba Express Project. Pipe delivery started in May 2008 and successfully completed in total of 9 months, earlier than the original time schedule. Upon the successful completion of Elba Express Project, BMB has achieved to win another important tender in the USA market. Currently, pipe deliveries for the new project continue successfully.