Yildirim, investor who came to Kosovo in times of crisis

The Yildirim international conglomerate is one of the major investors who recently succeeded Kosovo through the purchase of the Ferrnikli metallurgy giant, which is located in Drenas. On June 7th, Ferronikli announced that Yildirim would buy all the shares of the company, which by that day were owned by the investment group. BALFIN in Albania.

In announcing the company's media, Yildirim and Balfin companies were said to have taken all necessary measures for a smooth transition of ownership.

“Y group ILDIRIM, an international conglomerate based in Turkey, has signed agreements on the purchase of the company “NewCo Ferrnikli”, one of the biggest Ferronikli producers in Europe.

All shares of the “All necessary measures have been taken for a smooth transition”, the company's announcement said.

Ferronikli, an important asset to Kosovo economy

Ferronikli is one of the most important exporters, producers and employers for the state. Over the years, it has represented most of Kosovo's exports, reaching 30% of the country's overall exports. By employing about 900 employees directly and about 1,000 others indirectly, the company is the largest private investment in Kosovo's heavy industry.

Ferronikli is the second largest payment of the mining rent after KEK and one of the main assets of Kosovo's economy. Ferronikli, as one of the most successful companies in heavy metallurgy, presents the only opportunity to enable and employ various engineering frameworks at local universities, with which there is co-operation agreement, including Pristina University (UP).

In Kosovo's economy, Ferronikli has an important role, in the sense of added value and influence on Bruto Local Production (GDP). The entire production of the company is exported to Europe and Asia. Ferronikel is an important taxpayer for the state. In 2020 alone, the company has paid close to 4m euros indirect taxes on Kosovo's budget. In addition, Ferronikli is also important for other private sector companies, for the local lignite production company “Kosova Trugoli”, as well as vital for the public railway company in Kosovo “Trainkos”.

How will Yildirim affect Kosovo's economy?

With the global economy in crisis, metal markets have become fluctuating. The effects of the crisis, like any other heavy metallurgy factory in the world, have also afflicted Ferronikli in Kosovo, forcing him to cut off production for half a year, as the cost of the stock prices became unbearable for the company. The Turkish conglomerate Yildirim, with long expertise in the heavy industry, comes with a view to Ferroniklin making success stories, with the ambition that the frozen plant at the level of European heavy metallurgy factories.

Although the new owners have failed to disclose much details about the plans, the possibilities are that through investments, the plant will start commitment to activate the second line of production. The release of the second production line would result in increased number of workers. That would mean hundreds and possibly thousands of other jobs on the actual number of employees in the company.

In addition to employment, increased production capacities would also contribute local production and exports, much needed for the Kosovo economy, which suffers from the indirect ratio between imports and exports.

Yildirim expert, a guarantee of success

As it has been known and through the announcement, the Yilmaden company operating under the umbrella of the Yildirim Group already owns the production of low-frox Metallural Cox in Colombia, as well as a metallurgy plant of Ferrovadium and Ferromolibden in the United States. %Y ILMADEN Holding employs over 7,500 employees in eight countries -- Turkey, Kosovo, Sweden, Kazakhstan, Russia, Albania, Colombia and the US. The company exports its products to more than 100 countries around the world through more than 20 distribution centers located around the world.

The Turkish group's long-standing expertise in metallurgy is expected to bring about the needed stability of the Ferronikli company, for which there is much investment to operate in the not so stable global market of Nikel and electricity, which for the factory is the highest cost of production. The Yildirim group, through the Yildamen subcompany, established in 2014, has created a valuable luggage in the metal and mining sector that could be useful for a new age of development.