28.05.2026 14:32
AK Party Group Chairman Abdullah Güler stated that the Sivas Iron and Steel Factory, which has been idle for years, is a company with criminal organization connections. Güler announced that the factory has not been in production for 8 years, its electricity has been cut off for 3.5 years, and it has approximately 5 billion liras in Social Security Institution (SGK) and tax debts. Noting that the Savings Deposit Insurance Fund (TMSF) is carrying out temporary management at the facility, Güler stated that an investment of around 50 million dollars is required for the factory to resume production.
Sivas Iron and Steel Factory (SİDEMİR), once among Turkey's largest industrial enterprises, has come back into the spotlight. Statements made by AK Party Group Chairman Abdullah Güler have revealed the factory's current situation.
Acquired by businessman Erol Evcil in 1998 as part of privatization, SİDEMİR operated for many years as one of Turkey's key industrial facilities with an annual steel production capacity of 720,000 tons. The plant, which produced construction rebar and wire rod, was exporting to many countries from Europe to America.
However, due to financial issues in recent years, production has come to a halt.
"INCLUDED IN CRIMINAL ORGANIZATION CASE"
Meeting with journalists in Sivas, Abdullah Güler stated that the factory is involved in a criminal organization trial in an ongoing heavy penal case in Bursa. Güler said, "The Sivas Iron and Steel Factory is listed in the Bursa Heavy Penal Court as one of the companies under the control of a criminal organization. The court has issued a confiscation order for assets acquired through crime. This decision was made not only for SİDEMİR but for dozens of companies linked to the same structure." Güler also noted that the local court's ruling has not yet been finalized and the case will proceed to the Court of Cassation.
"NO PRODUCTION AT THE FACTORY FOR 8 YEARS"
Highlighting the expert reports in the court file, Güler stated that the factory has been completely idle for a long time. Güler said, "There has been no production at the factory for 8 years. The facility's electricity was cut off 3.5 years ago due to debts. Although some people claim work is being done at the factory, there is no active production environment. Because heavy maintenance has not been carried out, the infrastructure has also deteriorated significantly."
TMSF IN TEMPORARY MANAGEMENT
Stating that the Savings Deposit Insurance Fund (TMSF) has assumed temporary management to prevent further damage to the factory, Güler said the TMSF does not have the authority to make investments. Güler said, "The court appointed the TMSF as temporary management to prevent the damage from growing. The TMSF is only responsible here for preserving the current situation. It does not have the authority to invest in the factory or restart production."
DEBT BURDEN OF 5 BILLION LIRAS
Expressing that SİDEMİR is under a huge accumulated debt burden, Güler stated that the facility's Social Security Institution (SGK) and tax debts have reached approximately 5 billion liras. Güler said, "The facility has not paid SGK premiums for about 20 years. It has approximately 2.5 billion liras in SGK debt. Similarly, there is approximately 2.5 billion liras in tax debt."
"INVESTMENT OF 50 MILLION DOLLARS NEEDED"
Stating that a significant investment is required for the factory to resume production, Güler announced that about 50 million dollars in resources are needed for maintenance, repair, and renovation work. Güler said, "A strong investor is needed for SİDEMİR to rise again. Restarting a facility of this scale requires serious costs."
RESPONSE TO "LET THE STATE TAKE OVER" CALLS
Addressing demands for the factory to be operated by the state, Güler emphasized that the facility belongs to the private sector. Güler stated, "Some groups say 'Let the state take it over and operate it,' but this is a private sector facility, not state-owned. The process continues in court. First and foremost, a sustainable investment model needs to be established."
DEBT CANCELLATION NOT ON THE AGENDA
Abdullah Güler also stated that canceling the factory's tax and SGK debts is not possible.