PSM looking to achieve 60% capacity utilisation

Current management claims revival of the mill has begun.


Our Correspondent March 11, 2015
The current management at PSM claims that the revival of the mill has started and it is moving towards the path of growth. PHOTO: REUTERS

KARACHI: The Pakistan Steel Mills (PSM) management is looking to achieve 60% of its 1.1-million ton per annum capacity.

The company spokesperson said that after necessary repair and maintenance of Thermal Power Plant (TPP-TBS), it is now generating 50 megawatts (MW) of electricity.

In April 2014, when Major General (R) Zaheer Ahmed Khan joined PSM as chief executive officer, the production capacity of the mill was running as low as 1.4% while the mill was generating only 18MW electricity.

PSM has achieved this capacity utilisation after a gap of six years.  With the help of the recent bailout package of Rs18.5 billion, PSM now has huge quantities of raw material in its stocks. Moreover, two more ships carrying raw materials will soon arrive at the PSM jetty.

The current management at PSM claims that the revival of the mill has started and it is moving towards the path of growth and will soon be a success story for other corporations.

The difficulties Pakistan Steel is facing in selling its products are complex — this includes the availability of imported steel from China at a very cheap price, supply of smuggled steel products in domestic/local markets, which are affecting the sales of PSM products, the release said.

PSM is in constant contact with all concerned quarters and higher authorities of Ministry of Finance and Federal Board of Revenue (FBR) through Ministry of Industries and Production regarding imposing regulatory duty on imported steel products.

Published in The Express Tribune, March 12th, 2015.

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COMMENTS (2)

Woz Ahmed | 9 years ago | Reply Well done, assuming 100% production gets us to at least break even, let's dump this baby on some unsuspecting investor. Remember to keep an option on the land,many non steel related activity and the land reverts back to the state !
Ali | 9 years ago | Reply Once it's fixed the PPP minions will regain control and destroy all the good work by introducing more corrupt practices and appointing their people to key positions.
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