Pakistan Steel Mills (PSM) has received expressions of interest from 10 companies, including companies in China and Russia, to boost its production from the present 1.1 million mt per annum to 1.5 million mt. The process of awarding the contract is to be completed within the next three months, the Associated Press of Pakistan news agency has reported, citing PSM's CEO Imtiaz Ahmed Khan Lodhi.
According to the PSM CEO, after starting operations in the first phase of expansion, the mill will initiate a second phase named Green Field Project to double its production capacity to three million mt year. PSM, he said, has also been approached by private firms registered in Brazil, Indonesia and others in relation to the supply of raw material.
Accordingly, in February 2011, with the recommissioning of its battery coke oven-I after capital repairs, PSM's production will rise to 1.1 million mt per year. Currently, the mill is operating at 60 percent capacity and in January 2011 it is expected to reach 70 percent of its total production capacity. From next month, PSM's billet mill is expected to produce 0.3 million mt of billets per month.
"On December 31, we will be in a no profit-no loss position. By the end of June 2011, PSM will have a small net profit on its accounts," PSM's CEO said.
PSM has been catering to up to 20 percent of total steel demand of the country. PSM produces billets, hot rolled sheets and galvanized iron sheets, and sells by-products such as as coal tar, ammonium sulphate, slag and coke.