Abengoa’s Turkey Waste Investment Could Rise to $300 Million
Stock Chart for Abengoa SA (ABG)
Abengoa SA (ABG) will spend $120 million on two steel-dust-waste treatment plants in Turkey and the investment could rise to $300 million if it decides to expand capacity and build an aluminum waste treatment plant.
The Spanish engineering company’s Befesa Medio Ambiente SA unit will build the plants in the western and southern industrial provinces of Izmir and Adana, Befesa Chairman Javier Molina Montes said in a news conference in Istanbul today. The factories will each have a steel dust treatment capacity of 110,000 metric tons a year, he said.
Befesa has potential to expand its plants, which will start operations in the second half of 2014, Turkey’s Economy Minister Zafer Caglayan said at the conference. Befesa plans to recycle about 45 percent of the steel dust produced in Turkey’s annual steel production of nearly 24 million tons, Montes said.
“We will start building the plants in early 2013 after getting required permits,” Montes said.
The plants will convert steel dust into as much as 80,000 tons of zinc oxide annually, according to a statement distributed at the news conference. All production will be exported for as much as $100 million a year to the European Union, China and South Korea, Montes said.
Befesa, which entered the Turkish market by acquiring a stake from Silvermet Inc. (SYI), a Toronto-based mineral exploration company, in 2010, is also studying Turkey’s aluminum market and may decide to build an aluminum waste treatment plant should the market prove feasible, Montes said.
Ilker Ayci, head of the Turkish government’s Ankara-based agency to promote foreign direct investment to the country, said Befesa’s investment will help Turkey to reach this year’s target of at least $16 billion of foreign direct investment, unchanged from last year.
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