Hong Kong based firm to set up steel plant at Kalabagh
A two-member Chinese delegation will soon visit Pakistan to discuss legal procedures involved in setting up a steel plant, with a one million ton annual capacity, at Kalabagh, according to Engineering Development Board (EDB) General Manager SM Adil Shah.
Talking to The Express Tribune on Tuesday, Shah said the delegation will discuss lease of mines and land for the steel mill.
Amlong, a Hong Kong-based company, is interested in setting up the plant, and has targetted completion in less than two years, he said, adding that another large delegation of the company will arrive in April or May to finalise the deal.
Reserves at the Kalabagh iron ore deposits – the largest in Pakistan – are around 350 million tons.
Speaking to businesspersons at the Karachi Chamber of Commerce and Industry (KCCI) earlier, Shah said that Germany imported Pakistan’s surgical instruments and then exported them with their own brand names, adding that lack of brand names in the country was the biggest barrier to exports.” He explained that Germany imported surgical instruments from Sialkot at low prices of up to $5, and then exported them at prices up to $60.
Amlong representatives were part of the delegation of 200 businessmen who accompanied the Chinese Prime Minister in his recent visit to Pakistan.
EDB Chief Executive Aitazaz A Niazi said EDB was ready to facilitate local companies in fostering strong relationships with foreign companies who wanted to visit Pakistan. EDB is working on alternative energy in which Pakistan – a sector which has enormous potential. Niazi informed that the board was also trying to localise alternative technologies, and called on local businessmen to invest and help reduce production costs of such technologies.
Niazi added that EDB was preparing budget proposals for the Federal Board of Revenue, and invited KCCI businessmen to contribute.
Defending the automobile industry, Niazi said the cost of production of cars has surged in Pakistan due to appreciation of the Japanese yen, and rising prices of raw materials.
He informed that Pakistan produced only 21,000 Suzuki Mehran cars annually compared to India, which produced 900,000 such cars annually. He explained that Pakistani manufacturers produced cars on a lower scale, which increased the cost of production.
Niazi also urged businesspersons in Karachi and Sialkot to invest in training facilities for youth to produce trained human resources in country.
Published in The Express Tribune, March 30th, 2011.
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