The Naveena Group, a Pakistan-based fabric and textiles manufacturer, has announced that is entering the steel industry by establishing a 300,000 mt per year steel melting and rebar re-rolling mill at Port Qasim of Karachi, Pakistan. The new entity will be called Naveena Steel Mills (Private) Limited (NSMPL). The EAF’s proximity to the port is strategic to minimize costs of imports of scrap and other raw materials needed for production and the site can double in size.
The project is being developed in view of the optimistic prospects of Pakistan’s economy, rapid urbanization and industrialization in the country due to upcoming infrastructure projects like China Pakistan Economic Corridor (CPEC). The CPEC is expected to increase the demand for steel in the country. According to the press release, bank financing and project consultancy has already been engaged. The company added that it has already finalized its contract with one of the top European suppliers of modern steel mill machinery.
The company is aggressively targeting the start of its commercial production for June 2019.