Borçelik

Strategic Positioning
The first private and second largest flat steel producer in Turkey (1 million ton)
Biggest supplier of tailored products to large industries
Market share in cold-rolled (CR) products: 16%
Market share in hot-dipped galvanized (HDG) products: 19%
Strategic partnership with ArcelorMittal, the leader of the world steel sector

2007 Highlights
Growth in turnover 24%, in profit 36%
An important player in the steel production for the automotive, home appliance and radiator industries





Borçelik became the first company among the industrial companies and third in the
country to attain the ISO 10002 Customer Satisfaction and Customer Complaints
Management Standards quality certification.

According to the results of the customer satisfaction and loyalty studies, the Company
scored significantly higher than the global, European and Turkish averages.

The introduction of www.borcelikweb.com, an internet based business platform that
was designed according to previously determined customer expectations, was an
innovative application within the sector. The number of hits to website by registered
users has increased to more than 10,000 annually.

38 employees are actively involved in the management of the Voice of Customer
process. With more than 1,500 customer visits per annum, each customer is contacted
an average of 18 times throughout the year. In 2007, 622 people from 25 different
customer companies have received introductory product and service training.

Annually more than 1,500 employee suggestions are received for continuous
improvement opportunities.


Operational Highlights in 2007

Corporate Information

Shareholders

Production
Production activities in hot-dip galvanized steel, cold-rolled annealed steel
and pickled and oiled hot-rolled steel groups, which are vitally important
semi-finished inputs for the country’s manufacturers

Range of products consists of commercial, drawing, deep-drawing and extra-
deep drawing steel, as well as bake-hardening, structural grades,
rephosphorized, HSLA (high strength low alloy), enameling and dual phase

Production Capacity
A total capacity of one million tons

Capacity distribution:
500,000 tons cold rolled
420,000 tons hot-dipped galvanized
80,000 tons pickled and oiled hot-rolled steel

Birlik Galvaniz, whose hot dip galvanizing line was leased in 2004 and whose production and sales operations had been executed by Borçelik since then, was acquired by Borçelik in 2007 and is no more a corporate body itself.

Sectors Served
Borçelik’s major customer groups in the domestic markets include home appliance, automotive main and subcontractor industries, panel radiators, construction, color coating, pipes and profiles, packaging, metal goods, and Steel Service Centers

Location
Gemlik