Visit to the steel mill: Minister backs PSM’s restructuring

Is satisfied with measures taken by current management.


Our Correspondent July 15, 2014

KARACHI:


Federal Minister of Industries and Production Ghulam Murtaza Jatoi has said that the federal government will continue to support the restructuring plan of Pakistan Steel Mills (PSM) until the mill management overcomes the current challenges it faces.


He said this on Tuesday on his visit to the only integrated steel mill of the country.

PSM Chief Executive Major General (retired) Zaheer Ahmed Khan briefed the federal minister on the current production cycle of the mill, a PSM release said.

The minister showed satisfaction on the measures taken by the current management, and ensured continuous supply chain of raw material including coal and iron ore. Jatoi assured all-out government support to make PSM a viable entity.

During the briefing, the chief executive officer stated that the government has shown great magnanimity in giving the financial restructuring package at the end of the last financial year and in such a  huge amount (the government announced a total of Rs18.5 billion for PSM restructuring) in a short time of nine months.

Khan said that if he could get Rs7 to 8 billion in the next one year he will be able to finish his tasks earlier. Besides creating a strong workforce, the CEO intended to seek government help in carrying out some essential capital repairs to critical plant equipment for a sustainable full capacity performance. This also includes adding some economical value-added units to help enhance profitability in the short run.

The management urged the minister to make the payment of the recent financial restructuring package available to the PSM at the earliest to allow the company to increase capacity utilisation to 77% by January 2015, according to the target given by the government of Pakistan. The minister of industries and production was informed that PSM will obtain a production level of 20% during the current month.

Published in The Express Tribune, July 16th, 2014.

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