Naveena Group Announces Establishment of Steel Plant at Port Qasim in Karachi
Naveena Group has announced its foray into steel production business by establishing a 300,000 tons per annum (TPA) steel melting and re-rolling mill at Port Qasim in Karachi– Pakistan’s economic hub.
The project is being developed in view of rapid urbanization and industrialization, huge construction projects in the country due to infrastructure projects like China Pakistan Economic Corridor (CPEC) and downstream projects which will increase the demand for steel products in the country– shares of steel as well as cement, auto have been publicly trading reasonably high over the year.
According to the group’s spokesperson, the proximity of land for the plant to the port will result in cost-effective imports of scrap which is the raw material for the product giving the project a clear advantage over its competitors. The land is sufficient for the company to double its production capacity conveniently when considered expedient in future, said the spokesperson.
The Karachi headquartered Naveena Group whose core business is textile and textile products has named its new venture Naveena Steel Mills (Private) Limited (NSMPL).
The project consists of setting up of Steel Melt Shop and Rolling Mill to produce steel rebars. The company has already finalized its contract with one of the top European suppliers for machinery which aims to introduce state of the art metallurgical processes for the first time in Pakistan that will enable NSMPL to produce a better quality of steel rebars with improved yield giving it a competitive edge over the existing setups.
World-renowned consultant for steel sector has been engaged to provide consultancy and detailed engineering services for the project. The mandate for obtaining necessary financial facilities has already been awarded to a leading commercial bank.
The company is targeting to start commercial production by June 2019 resulting in the increased national capacity to fulfill the surging demand for steel in the country as well as generating various employment opportunities.
The announcement comes as country’s premier steel plant the Pakistan Steels, hitherto declared a sick state enterprise, has been earmarked for privatization or outright sale.
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