Categorized | Current Affairs, Pak CA

Strategic Assett: Pakistan Steel Mill to triple itself

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.

Leave a Reply

Categories

Archives