New steel plant to start production from January

Tuwairqi Steel to use latest ‘direct reduced iron’ technology.

LAHORE:

Tuwairqi Steel Mills has announced that it will start operations from the first week of January next year and the company will strive to bridge the growing gap between demand and supply of steel in the country.

At a seminar held here on Monday in connection with the launch of new technology in iron making, officials of the company announced that Saudi-based group Al Tuwairqi Holding, the parent of Tuwairqi Steel, would introduce for the first time in the history of Pakistan a state-of-the-art technology called ‘direct reduced iron’ (DRI) in the steel industry.

“Commercial production of DRI will commence from the first week of January 2013,” said Ubaidullah Qazi, Chief Executive of Engineering Development Board (EDB) – a state-owned institution which works under the Ministry of Industries.



Tuwairqi Steel is a state-of-the-art environment-friendly steel manufacturing facility, which employs world’s most advanced DRI technology based on the Midrex Process, owned by Kobe Steel of Japan. With a designed production capacity of 1.5 million tons of high-quality DRI per annum, Tuwairqi Steel will be the largest private sector integrated steel manufacturing unit in Pakistan.

In the first phase, Tuwairqi Steel, whose complex is spread over an area of 220 acres at Port Qasim in Karachi, has invested $350 million.

In the second phase, the company will invest $380 million in electric arc furnace and continuous caster technology and in the third phase it will inject $300 million into a pellet plant.

“Over the past few years, the steel and engineering industry has been experiencing a tough time as no foreign investor is willing to make investment owing to fragile law and order conditions,” said Zaigham Adil Rizvi, Director Projects of Tuwairqi Steel.



He said efficiency of Tuwairqi plant would ensure 86% utilisation of natural gas and the company would also help increase per capita steel consumption, which was right now very low in Pakistan.

Annual demand of steel in the country stands at around 8.4 million tons compared to total steel production of 4.9 million tons. In Pakistan, per capita steel consumption is only 38 kg compared to world average of 175 kg.

Tuwairqi Steel has engaged a local firm named Shajarpak for marketing and distribution of DRI as well as business development. In an effort to create awareness of the new technology, Shajarpak has sold some quantity of imported DRI pellets in the local market.

Speaking on the occasion, Shajarpak Managing Director Khwaja Usman said “with the international giant Tuwairqi leading us, we can open new doors and possibilities, which will herald rapid growth and introduce new concepts in the iron and steel industry.”

He said his company had initially sold 23,000 tons of imported DRI pellets in quick time in the local market, which would guarantee the quality of products.

Published in The Express Tribune, December 18^th, 2012.