Turkey has often been referred to as the "bridge between East and West" because of its geographic boundaries spanning two continents--Asia and Europe. Covering over 300 thousand square miles and having a population of over 61 million people, Turkey is one of the most industrialized countries in the Middle East. It's growing modernization and industrial growth make it an increasingly important player in the world economy. Although agriculture is by far the biggest economic contributor, one of the fastest growing industries is that of iron and steel. In 1994, Turkey exported over $1,719,000,000 in iron and steel products. Most of it was sold to Germany, Russia, and the United States.
Turkey's largest steel producer is Eregli Iron-Steel Works (also known as Erdemir) with gross annual sales surpassing $500,000,000. With the rising demand for Turkish steel, the company is on an aggressive path for increased modernization and expansion of its steel plants. Point in case is the recent decision to build a second, totally new, cold rolling mill located at Eregli, a small village on the Black Sea coast approximately 3.5 hours drive from Istanbul. The new mill will increase production from nearly 2 million metric tons of steel annually to 3 million metric tons.
One of the key elements of the new investment is the plant's electrical distribution system. The specification sent out for bid consisted of 4 substations, including 80 cubicles at 13.8 kV and 22 at 2.4 kV. It also called for a local and remote monitoring and control system. Although not specifically stated in the specification, this part of the plan was expected by the Erdemir engineering department to be implemented with programmable logic controllers (PLCs), computers, and the usual forms of digital metering and relays.
Several manufacturers were sent copies of the specifications and were under serious consideration. These included AEG, ABB, GE, Siemens and Westinghouse. The existing switchgear of the older distribution system had been primarily supplied by GE and Westinghouse; and having experienced favorable performance from the American designs, the specifications for the expansion were modeled around them.
Much has changed since the original distribution system was installed. Technology, particularly digital intelligence, has changed. Although most power engineering products are at such a mature level of development that little change has occurred, the electronics associated with these products has changed as often and profoundly as witnessed in the computer industry. This would, of course, affect the bid. The specifications were general enough to leave room for imagination and innovation.
Another less obvious change has been more gradual. It concerns the way we do business. It's global in nature. Certainly every bidder on the list is truly international. With our modern communications, it is not unusual for a bidding process to involve teams of personnel on all sides of the globe. Given the fact that the key components of the system are based on American designs, certainly the global aspects of our commerce provides the offices and representative companies located in Europe and Turkey easy access to their U.S. contacts. This too affects the bidding process.