The Pakistani government has allowed Saudi Arabia’s Al Tuwairqi Group to establish a $100 million export-oriented steel billet plant near Pakistan Steel Mills in Karachi, according to a Dubai press report.
The report said government also agreed to declare the area as an Export Processing Zone (EPZ). A decision to this effect was reached at a meeting presided over by Pakistani Industries Minister Liaqat Ali Jatoi. The cabinet’s Economic Coordination Committee (ECC) is expected to grant formal approval for the project.
Heads of Pakistan Steel Mills, the Export Promotion Bureau (EPB) and the Water & Sewerage Board Karachi as well as representatives of the Karachi Electric Supply Corporation and Sui Southern Gas Company (SSGC) attended the meeting.
Pakistan Steel has agreed to provide 100 acres of land to Al Tuwariqi Group for the project in addition to extending it whatever Pakistan Steel facilities it would need.
The meeting decided to declare the 100 acres of land as EPZ. The EPB chairman Tariq Ikram who recently visited Saudi Arabia and held discussion with Al Tuwairqi Group said the group planned to produce at the Pakistan site a million tonnes steel billets per year for 100 per cent export.
The plant would be based on the latest technology for sponge iron plants and utilise natural gas. It would have a billet melt-shop based on the electric arc furnace technology and continuous casting, said the report.
The idea behind having the project near the existing industrial complex of Pakistan Steel was to keep related infrastructure costs to the minimum. The electricity requirement of the new project is about 120MW and the natural gas requirement is 40 million cubic feet per day.
While Al Tuwairqi Group’ investment will be around $100 million the export potential of the project was estimated at between $180 million and $200 million million per year. Al Tuwariqi will undertake to buy-back all the products at a cost-plus basis.
The managing director, Water and Sewerage Board, Karachi, confirmed his organisation would meet the project’s water requirements but called on the promoters to determine the exact requirement of industrial water so that the pumping equipment could be installed.
The representative of the SSGC was positive regarding meeting the gas requirements of the project. It was indicated at the meeting that Al Tuwairqi Group would set up a captive power plant to generate electricity for the project
The project is expected to create direct jobs for around 1,000 people, plus indirect jobs for another 2,500.
Companies within Al Tuwairqi Group manufacture space frames, roofing systems, electrical equipment, hot rolled steel items and steel billets, among other things. It is well known as a distributor of building materials including white cement and as a trader in industrial materials.
Prominent in the group is Al Ittefaq Steel Products Factory (ISPF). Other manufacturing concerns are National Steel and Iron Factory, Space Frames Manufacturing Factory and International Electrical Products. It has divisions for contracting, scientific and medical products, building materials, industrial supplies, information technology and trading.
Ventures started in the past few years include Al Ittefaq Fibreglass Factory; the Independent Testing Laboratory, which provides testing services for chemical, mechanical and metallurgical properties; and the HVACX division, which provides heating, ventilation and air conditioning equipment and services.
ISPF produces MS angles, flat and square round bars, plain round bars, reinforcing bars (rebars) and channels at its modern plant in Dammam’s Second Industrial City. Manufacture is in conformity with Saudi, American, European and Japanese standards, making it possible for it to fulfill orders from the most demanding buyers.
