Mughal Iron and Steel Industries Limited has announced to invest Rs 1 billion to improve and expand steel re-rolling process, billets and in-house power generation capacity, subject to board and banks’ approvals.
Mughal Iron &Steel Industries Ltd, one of Pakistan’s largest steel producers at 1.1 MnT.
In a statutory filing made on Monday, Mughal Iron and Steel Mills Limited intends to increase its melting capacity by 396,000 MT at a cost of Rs 500 million together with installation of CCM and shearing machine in respect of “Hot/ Direct rolling” at cost of Rs 470 million, the company told the stock exchange.
Company secretary Muhammad Fahad Hafeez said in a notification to the Pakistan Stock Exchange that the board of directors has resolved to conduct BMR (Balancing, Modernization and Replacement) of its existing bar re-rolling mill.
“The BMR will involve addition of new re-rolling stands, finishing lines and other improvements to the existing mill in order to enable it to adhere to high and faster re-rolling process with state of art PLC control system. This will result in improvement efficiency of the re-rolling process,” he said.
“As a result, the total gross installed power generation capacity of the captive power plant will be enhanced to 27.9 megawatts. The said enhancement is expected to play a fundamental role in meeting increased demand of billet to support the existing re-rolling activities. The total cost of the projects would be approximately Rs1 billion”, he added.
Pakistan’s Amreli Steel also plans to expand rebar capacity – The company Board has approved the 2nd expansion plan estimating the total expense of PKR 2 billion within the next two years. The expansion will increase its annual capacity to 275,000 MT pa against current capacity of 180,000 MT pa.
Ferrous Scrap Imports to Pakistan to increase further – Amid increasing steel capacities, ferrous scrap imports to the country have also moved up. Imports are expected to reach 5-6 MnT in FY18 compared to 4-5 MnT in previous fiscal.
With upcoming capacities in line with infrastructure projects lined up, ferrous scrap imports to the country is expected to rise further.
As per data, Pakistan imported 393,676 MT ferrous scrap in Jan’18 as against 306,745 MT ferrous scrap imports during Dec’17 registering significant growth of 28% M-o-M in Jan’18. Notably, scrap imports recorded in Jan’18 hit last 8 months’ high since Jun’17.
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