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Chinese Steelmaker MCC Shows Interest In PSM Revival

Steel News - Published on Mon, 03 Jun 2019

Image Source: 3AW
The News reported that China’s biggest steelmaker MCC International expressed its interest in reviving cash bleeding Pakistan Steel Mills that has been incurring losses for over a decade. A delegation of the state-owned Metallurgical Corporation of China led by its Vice President Wang Zhou, called on Adviser to the Prime Minister on Finance, Revenue and Economic Affairs Hafeez Shaikh. The finance ministry said the Chinese delegation showed interest to invest in the steel industry with demand of 9 million tonnes, which is increasing by 15% every year. The ministry said that “The delegation offered support for revival, operationalization and improving the capacity of Pakistan Steel Mills on public-private partnership basis.”

Pakistan government is weighing an option to rejuvenate the state-owned PSM under the public-private partnership mode in phases that was estimated to cost around USD 800 million. The plant would be revived to achieve its built-in capacity in the first phase within one and a half year, while the production capacity would be jacked up to 3 million tonnes in the second phase.

The PSM shut down its furnaces in 2015 and it consumed almost PKR 200 billion of state funds on various heads till last year from 2008 when it used to be a profitable organization. The government has to pump an estimated PKR 400 million every year to pay salaries of the PSM’s employees.

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Posted By : Rabi Wangkhem on Mon, 03 Jun 2019
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