KARACHI: Dost Steels Limited (DSL) announced on Wednesday that it would start trial production of its new plant from February 1.
In case of satisfactory completion of the trials, the plant is expected to start commercial operations from March 1, 2018, according to a company notice sent to the Pakistan Stock Exchange (PSX).
The company had gone through all the stages required to commission the rebar plant in December and January.
The notice, however, cautioned shareholders and the public at large that the start of commercial operations required a number of clearances from all the relevant plant suppliers, technical rolling consultants and the engineering staff during the course of trial production. DSL’s share price closed at Rs12.85, down 0.07%. The benchmark KSE-100 Index closed at 44,049, down 184 points or 0.42%.
Analysts expect strong steel demand in coming years mainly due to robust growth in the construction industry and mega infrastructure projects related to the China-Pakistan Economic Corridor (CPEC).
According to the company website, Dost Steels wants to tap the growing construction market of Pakistan, which is continuously recording strong growth due to improving macroeconomic indicators. The company is especially eyeing upcoming projects under CPEC.
The steel mill is a Greenfield automated plant with initial capacity of 350,000 tons per annum, which will produce hot-rolled, high tensile, deformed steel bars.
The company’s head office is in Lahore but its plant is situated in Phoolnagar, a city in Pattoki tehsil of Kasur, about 58 kilometres from Lahore.
Last month, the Securities and Exchange Commission of Pakistan (SECP) asked Dost Steels about a 30% increase in its share price in just two weeks, to which the company responded that it had no idea why the stock had been so volatile.
“We have no idea as to why there has been volatility in the volume and price of shares of the company at the PSX. We are also not aware of any speculation/rumours,” stated the company in its letter to the SECP.
Published in The Express Tribune, February 1st, 2018.
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