Amreli Steel has announced that the Board of Directors have approved the second phase of expansion of the existing rolling mill which will cost them up to Rs. 2 billion and will increase production by 95,000 metric tons per annum.
The Steel manufacturer also mentioned that in order to expand and modernize the plant, the existing plant will be kept closed for ten (10) months from June, 2019 to March 2020.
The notice stated that, as based on technical, financial feasibility and after evaluating various viable options, the management has finalized the expansion and modernization of existing rolling mill of the company situated at S.I.T.E. Karachi with a total estimated cost of Rs. 2 billion.
This additional investment will help Amreli Steel’s existing plant to increase capacity from 180,000 metric tons per annum to 275,000 metric tons per annum. Earlier estimates of increasing the capacity to 325,000 metric tons per annum were revised after carrying out the feasibility studies.
The plant will be updated during the 10 months – from April, 2019 to March, 2020 – during which a shutdown of the existing plant will be imperative.
According to company estimates, barring any unforeseen circumstances, the newly revamped and modernized plant will resume production of re-bars by the end of April, 2020.
Amreli Steels Limited manufactures and sells steel reinforcement bars in Pakistan. It offers steel billets and deformed bars