Those who wanted to sell one of Pakistan’s greatest strategic assetts (Pakistan Steel Mills: A crucial strategic Assett) at bargain prices to the Bharati conglomerates have been defeated. Pakistan is once again marching ahead by developing the steel mill. The PSM was established with Russian help after 1971 when Zulfiqar Ali Bhutto was able to resurrect the deal made by President Ayub Khan. The steel mill has been instrumental in producing steel for the heavey mechnical complex, and Pakistan’s military industrial complex which produces tanks, planes, missiles, ships and subs.
Very few third world countries produce steel. Establishing steel manufacturing in Pakistan was a major feat. Acquisition of steel manufacturing technology in the 60s and 70s was like acquiring a nuclear processing plant plant today. From 1947 to 1973 Pakistan struggled with all Western powers to establish a steel plant in Pakistan. No country, not even the US, or the SEATO or CENTO allies sold a steel plant to Pakistan. American, British and French private firms were prohibited from exporting plants and steel manufacturing technology to Pakistan.
ISLAMABAD: China Metallurgical Group Corporation (MCC) has shown its interest to invest $2.2 billion for the expansion and revamping of Pakistan Steel Mills (PSM).
A 12-member delegation of MCC headed by Ms Huan met here on Thursday with the Federal Minister for Industries and Production Mian Manzoor Ahmad Wattoo and discussed various proposals in detail.
According to MCC, they will set up a new plant within two years as the first phase of the expansion project. The construction of the new plant will cost around $1.2 billion and on completion it will be capable of producing 2 million tonnes of steel per annum.
In the second phase the MCC will revamp and modernise the existing PSM plant. The second phase according to MCC will take another two years to complete and would cost around $1 billion.
They said that the revamping will raise PSM’s production capacity to 3 million tonnes per year, which today stands at 1.1 million tonnes per year. China MCC for investing $2.2 billion in PSM, Staff Report. Daily Times.
The minister took keen interest in MCC’s proposals and appreciated Ms Huan and her team for taking interest in the PSM project. He assured Ms Huan that he and his team will deeply study their proposals and would take a final decision on this project very soon.
The Pakistan steel mill is Pakistan’s largest industrial complex. The plan for the steel mill was created in 1968 by President Ayub Khan, but it was really the work of Zulfiqar Ali Butto’s visit to the USSR in 1972 that consecrated the deal.
Pakistan Steel Mills supported Pakistan’s defense production in producing tanks, missiles, sugar mills, general construction, bridges, and of course Pakistan’s nuclear programs. With a boom in construction the steel mill will be seminal in supporting the new economy as well as the various pipeline projects.
The Pakistan Steel Mill produces 1 million tons of steel. It was to be upgraded by the Russians to 2 million and then upgraded by the Chinese for 3 million tons. Those expansion projects are the need of the hour.
The MCC, which already has conducted technical investigation of the PSM in 1992 and has produced a 500-page report on the expansion of PSM in 2005, is China’s leading multi-disciplinary multinational company.
The MCC is known for its experience in scientific research, industrial engineering practice and international trading capabilities.
According to MCC website, the group is a major driving force behind the growth of China’s steel industry, and a reputable contractor of a number of key projects both at home and abroad. China MCC for investing $2.2 billion in PSM, Staff Report. Daily Times.
- Pakistan Steel Mills
In 1968 the Government of Pakistan decided that the Karachi Steel Project should be sponsored in the public sector, for which a separate Corporation, under the Companies Act, be formed. In pursuance of this decision, Pakistan Steel Mills Corporation Limited was incorporated as a private limited company to establish and run steel mills at Karachi. Pakistan Steel Mills Corporation concluded an agreement with V/o Tyaz Promexport of the USSR in January, 1969 for the preparation of a feasibility report for the establishment of a coastal-based integrated steel mill at Karachi.
In January 1971 Pakistan and the USSR signed an agreement under which the latter agreed to provide techno-financial assistance for the construction of a coastal-based integrated steel mill at Karachi. The foundation stone of this vital and gigantic project was laid on 30th December, 1973 by the Prime Minister of Pakistan Zulfikar Ali Bhutto. The mammoth construction and erection work of an integrated steel mill, never experienced before in the country, was carried out by a consortium of Pakistani construction companies under the overall supervision of Soviet experts.
Pakistan Steel not only had to construct the main production units, but also a host of infrastructure facilities involving unprecedented volumes of work and expertise. Component units of the steel mills numbering over twenty, and each a big enough factory in its own right, were commissioned as they were completed between 1981 to 1985, with the Coke Oven and Byproduct Plant coming on stream first and the Galvanizing Unit last. Commissioning of Blast Furnace No.1 on 14th August, 1981 marked Pakistan’s entry into the elite club of iron and steel producing nations.
The project was completed at a capital cost of Rs.24,700 million. The completion of the steel mill was formally launched by the then-President of Pakistan on 15th January, 1985. Pakistan Steel today is the country’s largest industrial undertaking, having a production capacity of 1.1 million tonnes of steel.
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