UPDATE 3-Erdemir sees Turkish steel growth easing
(Adds Oyak Group CEO comments)
Togahan Ozkan
ISKENDERUN, Turkey, Oct 10 (Reuters) - Growth in the Turkish steel market is expected to slow in 2008, steel major Erdemir (EREGL.IS) Chief Executive Oguz Ozgen said on Friday, amid a slowdown in the Turkish economy.
Despite lower growth expectations for steel, it was too early for Erdemir to revise its 2008 profit targets, Ozgen told reporters at the company's new Isdemir plant.
Ozgen declined to say why steel growth would slow, but economists say the Turkish economy is already seeing an easing of growth and worsening conditions in the European Union are expected to trim Turkish exports.
Earlier Oyak Group, majority owner of Erdemir, said Erdemir's flat steel production capacity would rise to 8.8 million tonnes per year due to Isdemir in southern Turkey coming on-line this month.
Erdemir's total capacity stood at 5.3 million tonnes prior to Isdemir beginning production.
Erdemir has invested some $3 billion to start producing flat steel products in Iskenderun.
Shares in Erdemir traded 8.1 percent lower at 4.55 lira, underperforming a negative Istanbul stock exchange index.
Oyak Group, a Turkish conglomerate, took control of Erdemir in a 2005 privatisation.
Oyak Group, owner of Turkish steel maker Erdemir (EREGL.IS), will make foreign acquisitions in 2009 in foreign mining sectors, the Group's chief executive said on Friday.
Oyak is also interested in participating in Turkey's nuclear power plant construction project, if conditions are suitable, Oyak chief executive Coskun Ulusoy told reporters at a press conference. (Editing by Peter Blackburn)
