Chinese company offers $1.5 bln to upgrade Pakistan Steel Mills
ISLAMABAD, September 14,(Gwadar Pro)-The largest Chinese Steel Company has offered $1.5billion to purchase and upgrade Pakistan Steel Mills (PSM). During the process, modern technology is expected to be transferred to Pakistan along with multiple job opportunities.
According to sources, the Chinese state-owned company, Baosteel Group Co.,Ltd. had expressed interest in purchasing shares of PSM. Earlier, international investment firms visited the steel mills after being pre-qualified for bidding while four firms were pre-qualified for privatization of PSM.
“The privatization of PSM shall be done by the third quarter of the current fiscal year 2022-23”, sources said.
Steel demand in Pakistan has reached 7-8 mln ton, the industry needs expansion and investment.
First, there is now a dynamic customer base for steel commodities in automotive, defense, transportation and appliances sectors.
Second, an increase in overall industrial activities has created further room, as most of the construction-allied industries are investing heavily in expansions.
Third, population surge has created a housing shortage and private housing projects are gearing up to cater to this shortfall.
Fourth, higher public spending and CPEC related infrastructure undertakings are fueling further demand for steel. These four developments will continue to increase overall demand for steel.
After privatization, the steel mills’ production will reach 1 million tons in the first year, 2 million tons in the second year, and further, 3 million tons in the third year.
The commercial leasing of the 1229 acres of land owned by steel mills and a jetty are also part of the restoration plan.