Toyota Tsusho chairman visits Indus Motor plant

Tuesday, May 20, 2008
By our correspondent

KARACHI: Toyota Tsusho Corporation (TTC) Japan’s Chairman M Furukawa recently visited the Indus Motor Company.

Senior officials of the IMC briefed him on the assembly-line processes and was gave a presentation highlighting IMC’s performance and achievements. He also reviewed on-going expansion projects of the company, which include a press-plant for making car-body parts, automation of production lines, etc.

Furukawa praised the quality of Toyota and Daihatsu vehicles assembled at the plant and also appreciated the company for increasing its production capacity. Furukawa also presented an award to IMC’s management on achieving the milestone of over 50,000 vehicles sale for 2007. He reiterated TTC’s ongoing commitment and support to IMC for further expanding production facilities.

Indus Motor Company chairman Ali S Habib thanked Furukawa for visiting Pakistan and appreciated Toyota Tsusho Corporation’s role in supporting Indus Motor’s both in becoming a major auto-manufacturer as well as a significant contributor to the economy of Pakistan.

http://www.thenews.com.pk/daily_detail.asp?id=113520

Call to tap engineering sector’s potential



Tuesday, May 20, 2008
By our correspondent

LAHORE: Member National Assembly and Pakistan Muslim League (N) leader, Ahsan Iqbal has said that the engineering sector has huge potential, which needs to be tapped. However, only those businesses would be able to advance that would be knowledge-based.

Ahsan Iqbal was speaking at a ceremony held in connection with the first anniversary of Etimaad Engineering Plc here the other day. He stated that the world has now become a global village and the level of competition is galloping fast with every passing moment. Therefore, the success of every nation lies in how they transfer their individual excellence into a collective one.

He stated that “we have to work for enhancing exports especially in the field of engineering as it has a lot of potential, and work for the promotion of a quality culture in the country.” Speaking on the occasion President & CEO of Etimaad Engineering, Mazharudin Ansari said “we are already playing our humble role in overcoming the power shortage through our involvement as construction contractor of 160MW Attock Gen Limited in Rawalpindi and 220MW Orient Power plant at Balloki.”

He said that their company offers total commitment to play its part in overcoming the current power shortage in the country. Thereby, acting as an engineering, construction and a project management company owned and managed by experienced professionals should.

He noted that his company is working on collaborations with reputable international companies to utilise expertise and verify design parameters. His company also offers in-house engineering, procurement and construction (EPC) capabilities to offer fast track solutions to meet Pakistan’s power in a cost effective way and to put up fast track power projects.

http://thenews.jang.com.pk/daily_detail.asp?id=113514

Consortium plans steel mill at Kalabagh

Four mills join hands to use indigenous iron ore for steel production

Tuesday, June 10, 2008
By Aftab Maken

ISLAMABAD: A consortium of four steel mills will establish an integrated steel mill at Kalabagh, The News has learnt. The planned steel mill would have annual capacity of producing one million tonnes of steel using indigenous iron ore excavated from Kalabagh and Chiniot.

Kalabagh and Chiniot have known deposits of iron ore that have not yet been excavated and utilised by the local steel industry, as importing iron ore, iron and steel scrap was cheaper than mining local ore a capital-intensive venture.

With global steel and iron ore prices skyrocketing the steel makers have finally decided to excavate and exploit local reserves. Pakistan Steel Mills is already using ore from Caghi, Balochistan.

The consortium comprising four companies include Mughal Steel, Star Cotton Corporation, Pak Steel and Ittehad Steel Mills. They have already incorporated a company under the name of ‘Indus Consortium Mining & Steel Industry (Pvt) Ltd’ with Securities and Exchange Commission of Pakistan (SECP), sources in the ministry of Industry & Production (MOIP) told this correspondent.

The company has also submitted an application to the DG (Mineral), Punjab for the grant of lease for 2000 acres at Kalabagh and 1000 acres at Chinot, they added.

Pakistan Steel Mills (PSM) is the only integrated mill in the county with a capacity of 1.1 million tonnes per annum. PSM was making steel prtoducts from 100 per cent imported ore and coke India, Iran and Australia. However, in last few years it has started using ore from Chaghi and imports ore only to meet the shortfall in local supply.

The steel industry of Pakistan consists of steel smelters, re-rollers, PSM, foundries, ship breakers and line pipe industry.

Increase in the international prices of iron ore, coking coal, metallurgical coke forced policymakers to either reduce import tariff or explore new venues to meet steel demand said an official of the Engineering De elopement Board (EDB).

A policy institute for the development of engineering sector in the country EDB is also encouraging and facilitating the PSM to increase the use of local iron ore and coal in the blend for manufacturing steel, the same official added.

Giving the details of the agreement for increasing steel production, the official said that a private firm AMCO Minerals would supply 15,000 tonnes of iron ore from Chaghi. It is already supplying 5,000 tonnes to the PSM. Similarly, another iron ore supplier from Chaghi is in negotiations with PSM administration for supplying ore.

The PSM has signed an agreement for the supply of 60,000 tonnes of iron ore concentrate with Saindak Metals and a similar supply agreement of 65,000 tonnes of Sharigh coal has also been signed, the official added.

The smelting capacity in the country is around four million tonnes of ingots and billets. The total number of re-rollers is 276 with an estimated capacity of 4 million tonnes whereas the ship breaking industry supplies around 600,000 to 900,000 tonnes of ship plates to the re-rolling industry.

http://www.thenews.com.pk/daily_detail.asp?id=117578

Euro-II 125cc bike to be launched

LAHORE, June 26: Italian auto giant Piaggio on Thursday signed a memorandum of understanding with a local motorcycle manufacturer here for launching of the first-ever Euro-II 125cc motorcycle in Pakistan and setting up an international standard service centre in the provincial metropolis.

Speaking at the signing ceremony of MoU at the Lahore Chamber of Commerce and Industry, Piaggio Senior President Riccardo Mastronardi said that the Italian auto giant would bring European technology to Pakistan which would give a big boost to the motorcycle industry in the country.

He said that Piaggio was one of the leading motorcycle manufactures in the world and Vespa scooter was its masterpiece.

Piaggio’s coming back to Pakistan for joining hands with a motorcycle manufacturer made the point that Pakistan was known as an investment-friendly country in Europe.

HKF Engineering Chief Executive Officer Haroon Arshad said that the Euro-II standard motorcycle would be launched on August 14 this year in collaboration Piaggio.

LCCI President Muhammad Ali Mian said that auto industry was one of the important sectors of economy which was not only providing direct jobs to more than half a million people but also contributing to the national exchequer in a big way.

He said that Piaggio would benefit from investment because Pakistan was a rapidly growing market of middle class which had registered growth of about 7 per cent in yester years outpacing its neighboring countries.

ECC likely to approve incentive package for petrochemical unit

* Unit will be established at Port Qasim n Initial investment is of 1.470 billion euros
* Tariff protection to be provided by amending FTAs

By Sajid Chaudhry

ISLAMABAD: Economic Coordination Committee (ECC) of the Cabinet today (Tuesday) is likely to approve incentive package for a petrochemical unit to be established at Port Qasim with an investment of 1.470 billion euros, official sources told daily Times Monday.

ECC meeting, first of the new fiscal year 2008-09, to be presided over by the Prime Minister Syed Yousuf Raza Gilani is scheduled at Karachi, provincial capital of Province of Sindh.

According to the official sources, a private company in collaboration with foreign invertors has proposed the government for setting up of petrochemical unit at Karachi and has demanded incentives as well as tariff protection.

According to the official sources, the company would invest Euro 470 million in first phase for producing Polyethylene (PE), Polypropylene (PP). In the second phase an investment of Euro 1 billion would be made to establish production facility of Naphtha Crocks and few other products.

The company has requested the government of Pakistan to allow this new industry a tariff protection of 20 percent against the imports of similar items in Pakistan, along with duty and tax-free import of plant, machinery and allied items.

The investor has asked the government to ensure 20 percent import duty gap between raw materials imported by proposed unit and final products imported in to Pakistan so that a reasonable tariff protection is available to the investor.

The Proposal, that would be considered in the ECC meeting today, also include that tariff protection should also be provided by amending Free Trade Agreement or Preferential Trade Agreement signed by Pakistan.

ECC would be given up date on Pakistan’s economic indicators especially during the tenure of the present government (March-June) period. Other issues that would also be considered in the meeting include Rs 30 billion R&D support for the textile sector, sugar, cement and wheat and wheat flour prices situation and their availability in all parts of the country.

Provision of electricity to the export oriented industries according to their requirement would also be reviewed. ECC is also expected to devise a mechanism for providing subsidy on items announced in the budget 2008-09. It is also expected to accord approval to the investment proposals of the local companies intending to invest abroad to broaden their operations.

As against the past practices, ECC meetings and federal cabinet meetings from now onwards would be convened at all provincial capitals to create harmony among all federating units.

Dr. Ishrat-ul-Ibad, Governor Sindh and Qaim Ali Shah, Chief Minister Sindh would also participate in the ECC meeting on special invitation.

http://www.dailytimes.com.pk/default.asp?p..._1-7-2008_pg5_7

Aisha steel mills to commence operations in 2009

By Moonis Ahmed

KARACHI: Japan’s Metal One Corporation, a subsidiary of Mitsubishi Corporation, will have a 26 percent stake in the under construction Aisha Steel Mills (ASM), a joint venture firm being set up in Pakistan to meet the growing demand of steel, CEO Haseeb-Ur-Rehman told Daily times.

“Besides the Metal one corporation, Japan based Universal Metal Corporation, Arif Habib Ltd would have a 25 percent stake in the venture being established at Karachi with a cost of $100 million,” Heseeb informed. “The plant is expected to be completed in two years and it will have an initial capacity of 220,000 tonnes per annum,” he added.

Steel is a basic raw material used from nails to skyscrapers, bridges and in the large scale manufacturing industry. Steel usage is one of prime barometers of growth of an economy.

Establishment of new steel mills will provide cheap raw material for the whole economy, which depends on its imports and suffered from the higher steel prices in the international market. Local automobile assemblers claim that higher steel prices are contributing to the rising cost of production.

After the set up of Aisha Steel Mills, the local auto assemblers would get a relief as the mills would especially produce steel to help local auto industry, Haseeb said. “The steel mills will cater to the growing demand of cold-rolled coils (CRCs) in the country and will satisfy the demand of the automotive and engineering industries, as well the home appliances sector,” he said.

Haseeb remarked that set up of the mills in Karachi would be the largest plant of its kind in the country in terms of producing value added cold rolled coils sheets.

The capacity of the mills will be later increased to 350,000 tonnes.

Annual demand for CRCs in Pakistan is about 450,000 tonnes, most of which is met through imports, analysts said. ASM would be the second Pakistani firm to manufacture CRCs after the state-run Pakistan Steel Mills.

Experts say that Pakistan needs big projects to pursue the self-reliant policy in the steel making as our neighboring countries are doing in steel production. Our neighboring countries, excluding Afghanistan are taking into consideration the importance of steel production especially.

China has been the biggest steel producers of the world, and India is the on the fifth spot. Unfortunately, Pakistan is not even in the list of top 30 steel producers of the world.


http://www.dailytimes.com.pk/default.asp?p...0-8-2008_pg5_18

im interested in working in an oil company(as an engineer)..any ideas etc??? who to call??

Schlumberger,OMV,MOL Petronas Cargellie and many more in Pakistan

Fertiliser project at advanced stage of construction: Rs 40 billion invested
RECORDER REPORT
MULTAN (September 16 2008): Fatima Fertiliser Company Limited (a joint venture of Fatima Group having industrial experience of more than 50 years and Arif Habib Group with strong experience in financial services sector in Pakistan) is said to be implementing a fully integrated (NP, NPK, CAN and Urea) Fertiliser Manufacturing Complex having the installed capacity to manufacture 1.58 million tones of fertilisers per annum requiring natural gas of 110 MMCFD.

The project will produce 1.068 million tones of fertiliser per annum, resulting in an idle capacity of 512,000 tones of fertiliser per annum as only 75 MMCFD gas has been allocated thus far. The financial close of the project was achieved within the time-frame allowed by the ECC of the Cabinet in its decision dated August 16, 2006.

The ECC approved the timeline to commence production by November 2009. The management has plans to bring the Complex into production within the timeline approved by the ECC. A team of highly competent professionals having rich experience of fertiliser sector is managing the affairs of the Company.

The Complex is now at an advanced stage of construction at Sadiqabad District Rahim Yar Khan. There is over 3600 labour force working at the project and construction works are 62 percent complete. Investment in Plant and machinery and other infrastructure facilities worth $575 million or about Rupees 40 billion has already been made with major plant arrived at project site and under shipment against firm letters of credit.

Implementation of this project will substitute import of heavily subsidised fertiliser with local manufacturing, resulting in saving of foreign exchange of more than US $1350 million and reduction of import subsidy burden on the exchequer by about $855 million annually.

Key Contractors of the Complex are Sojitz Corporation (Japan), CNCEC (China), UHDE (Germany)) Kawasaki Plant Services (Japan) M.W.Kellogg (UK), SNGPL and Nespak. Syndicated Term Finance Facility has been extended to the project by a consortium of 16 leading domestic and foreign banks operating in Pakistan. Independent technical consultants for the lenders to the project Stone & Webster Consultants Limited (UK) are regularly monitoring the progress of the project which would commence production as per agreed and approved time line.

http://www.brecorder.com/index.php?id=8079...m=&supDate=

Reporting on sept 15, 2008
Fatima Fertiliser Plant: ministry accused of not monitoring progress

ISLAMABAD (September 15 2008): The Ministry of Industries and Production has been accused of not properly monitoring progress on Fatima Fertiliser Plant at Sadiqabad despite the fact that its delay is costing the national exchequer an estimated Rs 3 billion annually, official sources told Business Recorder.

"The first target set by the Economic Co-ordination Committee (ECC) for this unit to come into production by August 23, 2006 could not be met and delay in production of urea by Fatima Group cost the national exchequer an estimated Rs 3 billion per annum," the sources added.

The Fatima Fertiliser Plant, a joint venture of Fatima Group and Arif Habib Group, was discussed in the previous Parliament because of close ties of its sponsors with former prime minister Shaukat Aziz.

The government had allocated 75 mmcfd of feed gas from Mari Gas Field with the agreement that the plant would start commercial operations in August 2004, a deadline given by the ECC.

The ministry had recommended that since the company has failed to set up the urea and phosphatic fertiliser project within the stipulated time given by the ECC in August 2004, the allocation of 75 MMCFD of feed gas from Mari Gas Field may be revoked and allocated to the already qualified bidders.

Sources said the ministry had also proposed that in case of extension in the completion period to August 31, 2008, the government should impose penalties as noted in the agreement.

The issue resurfaced in the ECC meeting on September 10, when Ports and Shipping Minister Qamar-Uz-Zaman Qaira raised his voice against the much delayed projects, saying that the consortium had got gas allocation for fertiliser plant, which is to be commissioned in 2009 in accordance with the extended deadline. The ECC has directed the Industries Ministry to review gas allocation to Fatima Fertiliser as the sponsors have, so far, erected the boundary wall only at the site of the plant.

The minister also said that old machinery was lying inside the boundary wall, which indicates that the proposed plant is unlikely to be operational even within the extended deadline line of December 2009.

According to sources the, minister was of the view that the Ministry of Industries and Production should submit a report to the ECC in its next meeting. The government should further extend the deadline to 2010 and if the sponsors do not complete the project in time, gas allocation should be cancelled and the earmarked gas of 75 mmcfd should be allocated for power generation.

Earlier, the ministry had recommended that if the Fatima Fertiliser delays its production beyond August 31, 2008, it must pay a penalty equal to 1 percent of the import subsidy paid by the GoP on the installed capacity of 240,000 tonnes of urea, which was to be produced during the first month of the production, 2 percent for the second month and so on up to a maximum of 10 percent.

http://www.brecorder.com/index.php?id=8076...m=&supDate=

TUSDEC to set up industrial automation institute

Tuesday, September 30, 2008
By our correspondent

LAHORE: Technology Upgradation and Skill Development Company (TUSDEC) is setting up Pakistan Institute of Industrial Automation (PIIA) as a training centre that will produce workforce for the industry, fully competent in operation, installation and maintenance and system design of PLC (Programmable Logic Controllers)-equipped and other automation machines.

This was explained at the first meeting of the working group of PIIA. According to a statement, the meeting was presided over by TUSDEC chairman and attended by representatives of Original Equipment Manufacturers (OEMs), textile industry, process industry, government officials and academia.

Briefing on the institute, the TUSDEC CEO said it is the need of the hour to produce automation experts who could work on any branded automation and control system. Their expertise should not be restricted to any one particular brand.

He said the graduates from the institute will also be able to assist in the automation of existing industrial plants through in-depth knowledge of PLC and automation system design. He said the Pakistani industry lacks manpower skills possessing requisite knowledge of PLCs and automation and in particular the ability to suggest, design and install automation solutions.

The participants of the meeting opined that there is a huge demand for automation experts in the industry and current institutes do not cater to their growing demands. They also emphasised the need to make sure that the personnel possess adequate certification as automation experts.

http://www.thenews.com.pk/daily_detail.asp?id=138661

Rationalise 3G spectrum auction process, telecom industry asks govt



Tuesday, November 25, 2008
By our correspondent

ISLAMABAD: Representatives of the telecom industry on Monday discussed with government their concerns regarding the auction of 3-G Spectrum by Pakistan Telecommunication Authority (PTA) and the current taxation policy for the telecom sector.

The government has assured the telecom industry of its full cooperation in launching of the new technology, says a press statement issued here.They apprised the public sector participants that Pakistan’s Telecom Industry has matured enough to move to the technology of 3-G Spectrum, which is a part of its natural evolution and growth process.

It was urged that the government may like to formulate policy framework to handle this process smoothly and in consultation with the Telecom Industry, so as to safeguard their business interests in Pakistan. It was further requested to rationalize the process of auctioning of the spectrum for this new technology into Pakistan.

The Secretary Investment, Ashraf Hayat responded while saying that the government has to strike a balance between securing the interest of consumers and ensure survival of players. While referring to the Taxation Policy of the government, it was informed by the private sector that total cost of mobile ownership in Pakistan has become one of the highest in the world due to imposition of activation tax, 21 per cent GST, import duty of Rs500 and handset duty of Rs250. It was requested that actual retailers and distributors of mobile sets in the country be also embedded into this tax regime and the import duty be subsequently withdrawn by the government.

In response, representative from Federal Board of Revenue informed the participants that there are some conceptual problems regarding the understanding of the taxation system. He said that Pakistan ‘s Telecom industry earlier has always enjoyed a tax exemption regime which includes exemptions on custom duty, sales tax, federal excise duty, import of plant and machinery etc. He referred to activation tax and said that it is like Sales Tax which is to be paid at import and supply stage. As far as Import duty is concerned the Industry was heavily exempted upto the time of current year’s budget. Again, the rate of import duty, irrespective of the total value, was kept at flat rate of Rs500. This was done by the government in order to attain national objectives, which were to cut down imports.

The Secretary Investment assured the private sector to take up their genuine issue and concerns with the Ministry of Finance and Federal Board of Revenue and if the Industry may like to approach them directly, they will be backed by the Ministry of Investment. The private sector appreciated efforts of the Ministry of Investment for providing a platform to have a productive dialogue with the government to present their concerns and issues directly to the policy makers.

From the public side, participants included Nisar Masoor Chief Customer Officer, Federal Board of Revenue, Mushtaq Ahmad Member Telecom, Minister of Information & Technology, Arif Inam, Director General, (Commercial Affairs), PTA, Aslam hahab, Director General, (Licensing) PTA and Arif Agha Director (Economic Affairs), Pakistan Telecommunication Authority.

The Telecom Industry was represented by Aamir Ibrahim, VP Mobilink, Maj. Gen. ® Hamid Hassan Butt, GM Coordination Ufone, Moqeem Ul Haque GM Strategy Ufone, Irfan Wahab Khan, Executive Vice President Telenor, Qazi Muhammad Idris, Director Public & Govt. Affairs, Telenor, Ahmad Faisal Sr. Manager Regulatory Affairs Zong and Syed Ahmed Suhail Pirzada Consultant Zong.


http://thenews.jang.com.pk/daily_detail.asp?id=148712

Engineering goods’ share in total exports rises to 4pc

Thursday, November 27, 2008
By Mansoor Ahmad

LAHORE: Local engineering industry, lacking technology, increased its share in total exports from Pakistan from 2.4 per cent in 1999-2000 to 4.1 per cent in 2007-08, which is still only 0.12 per cent of the global engineering trade.

World engineering goods trade exceeds $6 trillion while the engineering goods exports from Pakistan were 708 million in 2007-08. The exports though increased three times from the $203 million exports of engineering goods achieved in 1999-2000, and are still negligible when compared with global engineering trade.

Engineering experts said that some of the low valued engineering industries of the country have achieved required efficiencies to capture some markets in developed economies that have stopped producing low value added products due to high labour costs.

However, the entrepreneurs say they have not been able to exploit this potential due to various policy flaws. They said steel is the basic raw material of the engineering industry but it is available in Pakistan above the global rates due to the protection provided to Pakistan Steel Mill.

They said more than two thirds of the steel used in the country is imported. Its cost increases because the government provides protection to the local mill that produces less than one third of the steel and steel products. The shortage of power and energy and their high rates are the other factors, they added.

http://www.thenews.com.pk/daily_detail.asp?id=149318

Engro Polymer uses new PVC pipe

KARACHI, Nov 26: The Engro Polymer and Chemicals Limited (EPCL) has become the first company to use locally manufactured 20-inch diameter PVC pressure pipe for supply of raw water.

This has been developed by the EPCL’s Lahore-based customers, Shafi Sons Engineering (Pvt) Ltd.

It has opened new horizons for manufacturing of larger diameter PVC pressure pipes in Pakistan as they can now replace more expensive piping material currently being used in potable water pipe schemes, says a press release.

Engro Polymer and Chemical Limited is currently undergoing a capacity expansion and back integration project worth about $250 million to enhance capacity to 150,000 tons per annum.

http://www.dawn.com/2008/11/27/ebr19.htm