Karachi: Pakistan Steel Mills (PSM) Chairman Aamir Mumtaz recently revealed that the country’s ‘only mill that can mold iron ore into steel’ will remain under the administrative control of the government — with the mill administration looking to reactivate some of its production facilities in order to generate income until the executive finds a strategic investment partner for the project, according to a news source.
Speaking to the media, Chairman Mumtaz said that the PSM administration was in talks with tinplate producers, auto manufacturers, and other companies to restart commercial operations for fabrication, coal jetty and molding procedures. The Government of Pakistan has decided to handover the PSM to a consortium of investors on a repair, operate and transfer (ROT) basis. In this regard, Russian, Turkish and Chinese firms have expressed their interests; while some more firms from America and Europe are also interested in the project.
The strategic partners are expected to bring operating capital required for various functions in the PSM and expand its capacity from the existing 1.1 million tons to 3 million tons. For this purpose, the required investment to revive the steel mill and enhance its capacity ranges between USD 500 million to USD 1 billion. The PSM chairman further mentioned that the partners would also be responsible to revive and operate the project by bringing in their own team.
The chairman also hinted that there will be downsizing as the mill is ‘heavily overstaffed’. He added that the ‘right person’ needed to be hired to perform the ‘right job’.
