Amreli Steels Limited, the country’s leading steelmaker, on Friday, announced that its board had approved the third phase of its expansion plan.
The company is setting up an additional state-of-the-art rolling mill using Pioneering Technology at Dhabeji to further expand its rebar manufacturing facilities.
The new investment proposal, subject to the approval of technical feasibility and successful fund management, would raise existing rolling capacity of the company from 605,000 metric tons per annum to 1,105,000 metric tons per annum and is expected to complete in three years’ time from the financial close.
By installation of this new facility, the company will have the largest capacity for producing rebars in Pakistan with economies of scale in terms of conversion cost.
The total cost of the expansion is estimated at Rs 6.5 billion, which will be financed through bank borrowings and internal cash resources.
Internationally reputed consultancy firms have been invited to submit their bids for final selection to commence the technical feasibility of the proposed project.
Furthermore, the Board of Directors had detailed deliberations on the expansion plan regarding the overhaul of its existing S.I.T.E rolling mill which would have increased production capacity from 180,000 to 275,000 metric tons per annum.
Based on these deliberations, the company has decided to rescind the revamping plan of the company’s S.I.T.E rolling mill due to the above expansion at Dhabeji.
Accordingly, there would be no shutdown for a period of ten months (expected from June 2019 to March 2020) as per earlier plans from their notification dated 20 February 2018.
ASTL’s script at the bourse was trading at Rs 67.60, up by Rs 1.47 with a turnover of 74000 shares.
Amreli Steels Limited manufactures and sells steel reinforcement bars in Pakistan. It offers steel billets and deformed bars.