Borusan Group is a conglomerate engaged in manufacturing (steel pipe and flat steel), distributorship (automotive and heavy construction equipment), logistics and technology. Group's consolidated sales for 2002 are 691 mn$.

The Borusan Group's origins trace back to İstikbal Ticaret, which was founded in 1944 to import steel products and to export dried fruits. In 1958, Borusan first ventured into steel production under the name of Borusan Boru. Thus, the products that İstikbal Ticaret had once imported began to be produced in Turkey.

The establishment of Kerim Çelik, Borusan Mühendislik and Supsan followed the founding of Borusan Boru. In 1972, the decision was made to integrate all Borusan companies under a single management structure: Borusan Holding. At the same time, the Steel Group's operations were expanded with the founding of Birlik Galvaniz.

In 1984, Borusan became the BMW Group cars exclusive distributor throughout Turkey, adding distributorship to Borusan Holding's range of operations (Borusan Otomotiv)

In 1989, growth of the Steel Group continued and Borçelik, Turkey's first privately owned producer of cold-rolled flat steel products, was founded.

In 1994, Borusan Holding secured the distributorship for Caterpillar construction equipment and power systems first in Turkey, and then in Azerbaijan, Georgia and Kazakhstan (Borusan Makina and Borusan Güç Sistemleri)

In 1997, Borusan's management systematized the Group's long-term vision and objectives in The Group Strategic Plan. The plan was designed to build on the steady growth that had begun with the Steel Group and moved on to include distributorships, calling for the restructuring of existing operations and a program of new investments.

The first step toward the realization of these goals came in 1998, when the Group entered into a strategic partnership with Mannesmann. With this alliance, Borusan became one of Europe's five largest producers of welded-steel pipe.

The Group's strategic plan called for a division of Borusan's operations into four primary business areas: steel, distributorship, logistics and technology.

The Group's three flat steel products companies, Borçelik, Birlik Galvaniz and Kerim Çelik, were integrated under a single management with a common vision. With the merger of Bortrans, Boru Nakliyat and Borusan İhracat-İthalat into Borusan Lojistik, the restructuring process necessary to create an integrated logistics supplier was completed.

In accordance with the strategic plan, in 2000 Borusan Teknoloji was established with the mission of making investments in the information technology and telecommunications sectors. Borusan Teknoloji's business model calls for it to invest in companies with high growth potential, providing them with both funding and management support. To date, Borusan Teknoloji has invested in three companies: Bnet, Pargem and TIME Communications.

Another important investment made in 2001 was the US$ 140 million invested in Borçelik, in coordination with Sollac Mediterranée a subsidiary of the Group's French partner, the Arcelor Group, which is the world's largest steel producer.

In 2002, Borusan finalized the take over of 35% share in Bamesa Aceros, a Spanish steel service center company with operations in 9 plants in Spain, Mexico, Portugal and Turkey from Arcelor. Bamesa Aceros has an annual turnover of 500 mn $ and processes 1.5 mn tons of steel annually.

Borusan Holding oversees the capital allocation and management of the Group's companies. Borusan Holding sets corporate standards and policies in areas such as business development, finance, human resources and communications and information technology. Following the establishment of these policies and their distribution to the Group's business units, Borusan Holding monitors their implementation. The primary function of Borusan Holding is to ensure effective coordination among Group companies. The objective is to create added value by ensuring that group companies make the optimal use of synergy resulting from common knowledge and skills.

Borusan Holding has initiated a number of projects to increase managerial competency throughout various Group operations. These are, "6 Sigma", which targets improved productivity and customer satisfaction; "SAP R/3 ERP", which focuses on Corporate Resource Planning; "Value Based Management", the "360º Competency Project", which works to improve human resources planning, training and development; and the "Strategic Communication Model", used in managing the Borusan brand.

Of primary importance among these projects is 6 Sigma, which the Group has adopted as a way of life. A business methodology, the stages in the application of 6 Sigma to business processes are: "define, measure, analyze, improve and control". The first steps in the implementation of 6 Sigma were taken at the end of 2001, and the Group expects to be able to begin measuring its adoption levels and contributions to profitability as of year-end 2003.

In the new millennium, Borusan Holding will continue to follow its vision of "To be one step ahead by doing the best in our business."