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Agreement to set up steel mill

By The News correspondent

KARACHI: A joint venture agreement was signed last week between Japanese companies and Arif Habib Securities Ltd to set up Aisha Steel Mill Ltd, which will be the largest steel plant of its kind in Pakistan and produce value-added cold rolled coils/sheets at around 220,000 metric tonne for engineering and automobile sectors. The total investment in the project is expected to be $100 million.

The project will be set up using state-of-the-art process equipment procured from renowned Japanese and European manufacturers: Push Pull Pickling Line & Cold Reversing and Skin Pass Mill will be supplied by JP Steel Plantech Co Japan, batch annealing furnace by Ebner Austria and Recoiling Line and Electrolytic Cleaning Line by Tanisaka Iron Works Ltd & Hotani Japan. The facilities set up under the project will be deployed for processing hot rolled coils into cold rolled coils (CRC) for thin gauges (0.15-1.50mm and maximum width of 1219mm) for use in the automobile and engineering sectors. Other uses of the product are electric appliances, motorcycle, bicycle and industrial applications.

The primary objective of the project is to reduce dependence by automobile and engineering and other ancillary industry on imported cold rolled coils thereby promoting industrialisation of the Pakistani economy. The availability of locally manufactured CRC will boost usage of steel and make the industry competitive. The investment will generate direct employment for around 450 for managing the project. Moreover, it will create indirect employment for 1,200 in the services and trade related sectors.

The Japanese parties to the agreement are Universal Metal Corporation, a steel processor and exporter of metals, Metal One Corporation, the largest metals trader of the world and a subsidiary of Mitsubishi Corporation, and Sojitz Corporation of Japan.

link http://www.thenews.com.pk/daily_detail.asp?id=51691

What would be the location, Karachi or any other place?

Because most of automobile industry is around Lahore.

I think its in Karachi.

Steel mills and related infrastructure is in Karachi. And its a port city, so logistics would be of a lesser hassle.

Much of it is located in around karachi , only one assembly plant oh honda near lahore , rest are in karachi.

Where in Pakistan is fine with me.

Great news.

A VERY GOOD NEWS.

THERE IS AN IMMENSE POTENTIAL OF STEEL EXPORTS IN THE WORLD MARKET , PAKISTAN SHOULD EXPLOIT THIS .

I recommend that STEEL MILLS be established at the source of raw iron which is at KALABAGH and a place in BALOCHISTAN. From their it should be shipped to industry .

This will also help the local people getting jobs and good pay .

VERY GOOD NEWS.

THERE IS AN IMMENSE POTENTIAL OF STEEL EXPORTS IN THE WORLD MARKET , PAKISTAN SHOULD EXPLOIT THIS .

I recommend that STEEL MILLS be established at the source of raw iron which is at KALABAGH and a place in BALOCHISTAN. From their it should be shipped to industry .

This will also help the local people getting jobs and good pay .

SDS .. if in upcountry .. it would mean .. iron ore will be sourced and used of Pakistani origin, if in Karach than it means the ore would be imported.

Either way, its a win, win situation!

must7,

1 : This is a Mini-Steel Plant as the Total Annual Output is 220,000 tonnes.

2 : This points out that it is a Re-Rolling Plant as it will take in Hot Rolled Coils and "process" them into Cold Rolled Coils.

3 : The Hot Rolled Coils are locally manufactured and Aisha Steel Mill Ltd. will not convert Iron Ore into Iron-Steel.

Please advise your views.

Peace

must7,

1 : This is a Mini-Steel Plant as the Total Annual Output is 220,000 tonnes.

2 : This points out that it is a Re-Rolling Plant as it will take in Hot Rolled Coils and "process" them into Cold Rolled Coils.

3 : The Hot Rolled Coils are locally manufactured and Aisha Steel Mill Ltd. will not convert Iron Ore into Iron-Steel.

Please advise your views.

Sorry I did not see the output details .. yes it is could be too small a mill to have a feasible iron ore production capacity, it could even be a re-rolling plant using scrap iron !

i think it would just produce steel from processed iron. SInce full fledge steel mills which convert iron ore to iron require billions of dollers such as karachi steel mills which was just being sold for few millions

SInce full fledge steel mills which convert iron ore to iron require billions of dollers such as karachi steel mills which was just being sold for few millions

before going into the details of the sale deed, I suppose you forget that from day 1 this mill was making losses until Gen. Musharaff took over and made the turn around by virtue of which the PSM was able to not only return back defaulted loans but in fact returned future loans as well !

even if steel mill was making losses its assets were still worth billions and now even more. May be it makes sense that General invested in the business to make it better so he cud sell it for higher price to pocket a big cash but it was stopped by supreme court. May be thats why he is so pissed off at CJ because he wasplanning for many years lol

even if steel mill was making losses its assets were still worth billions and now even more. May be it makes sense that General invested in the business to make it better so he cud sell it for higher price to pocket a big cash but it was stopped by supreme court. May be thats why he is so pissed off at CJ because he wasplanning for many years lol

Firstly what you call billions in real estate is also something which the Gen. General has brought to Pakistan. I mean earlier the price of real estate in Pakistan was mere peanuts .. it is only now that people can afford to buy houses in Crore's ! .. yeah I know the economic upgradation of the country has not touched the majority of the population but I wonder from where the middle class is able to pay real estate prices which we from overseas still find difficult to arrange !

The profit if it was being taken could have been for the privitization commission had the President taken the commission today it would have been news for the die hard Musharaff haters.

Also don't forget that such type of dealing was happening to the sale of UBL too, suppose you are a kid and don't remember that it was Gen. Musharaff (at that time CE) who called the T.V. comparior and got his privatization guy back and cancelled the deal ... which enabling the purchase of the bank by the AUH Group. Also don't forget that before Gen. musharaff UBL was in total doldrums and saving this back meant saving 40% of Pakistani economy ! Who go the comission !

I remember when PTCL was sold everybody was crying foul against Gen. Musharaff .. anti-govt. haters colours were shown when ETISALAT tried level best to run away from the take over !