Growth agenda: ISL announces expansion plans

Board of directors due to meet in February to approve further development plans

KARACHI: International Steels Limited (ISL) - the makers of flat steel products - on Wednesday announced further expansion of the company, subject to board of directors’ approval.

The company did not mention anything specific about the expansion plans in its notice sent to the Pakistan Stock Exchange (PSX).

The board of directors will meet on February 1, 2017 to ‘discuss and approve the further expansion plans of the company, it said, adding that a close period will be effective from January 25 to February 1, 2017.

The market took the expansion plan news positively and ISL share price jumped by 5% and closed at Rs117.52 on Wednesday. Meanwhile, KSE-100 index closed at 49,756, down 212 points or 0.42%.

The company announced its first half (Jul-Dec) yearly results of 2016-17 on Tuesday, earning a net profit of Rs1.16 billion compared with a loss of Rs78 million in the same period of last year.

Despite a massive increase in earnings, the company stock price on Tuesday hit its lower lock - a share price can decline by a maximum of 5% in one trading session.

Current annual capacity of ISL is 500,000 tons. Its plant produces cold rolled, galvanised and color coated steel from hot rolled coils. Its production mix comprises of 100,000 tons of cold-rolled product, 350,000 tons of hot-dip galvanised and 50,000 MT of color coated steel.

ISL was incorporated in 2007 to produce flat steel products. The $165 million investment has equity contributions from Sumitomo Corporation, JFE-Japan and the International Finance Corporation (a division of the World Bank).

Published in The Express Tribune, January 26^th, 2017.

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