Pak Steel Mills: at least $100m needed; Senate discusses ‘options’

[CriticalThought]

And very frail symbol it is. With great respect to my counterpart, in the humblest manner possible, I bring that to your attention.

Heavy industries are questionable businesses in this day and time, when 20+ nations try competing in that industry, each outdoing other in level of subsidies. You can't make steel profitably when those countries sell steel below its cost.

You are better to take advantage of the situation, and buy that steel at rock bottom prices when you can.

Why not to sell PIA, PSM, cotton and canneries, build factories for light industries? That will be the long awaited and so needed re-industrialisation.

We need a foundery for local consumption and to enable us to produce high performance materials that would not be available easily on the international market, or, we don't want the world to know we are interested in those materials.

 

[AdeelMian]

has any 1 of you guys been to PSM.
well i ve been and beleave me opting for privatizing it fot a mere revenue of 8b usd is as silly as it gets.
if the steel mill can be revived even to its 70 % production capacity your steel raw material imports will be cut down by atleast 50 percent and also that will immensly lower the cost of HR steel hence feuling new life in our industry.
beleave me when i say this cuz i am in steel industry for 20 yrs now and i miss those good old days when we had options to buy local HR material.

 

[Zhukov]

Why not lease it to Russians on Profit Sharing basis or something? It cannot continue like this. We cannot afford it.

 

[Skull and Bones]

China will buy it.

 

[Super Falcon]

In 80 i seen how steel mills was growing and helping pak economy but basterd nawaz sharif started all mess

Anyway 100 million should be given if govt help run this with sincerity i still believe it has capability to turn the tables once it was a biggest steel mill of asia in production and it can achieve it again

And connect it with HIT POF POC and karachi ship building to supply them with high quality steel

 

[ziaulislam]

scarp this piece of shit mill, it is considered garbage today, This is a very tiny steel mill with huge budget. stop being proud of this garbage please this is nothing but a scam.

And what to do about peoples pensions..
Invest expand with private patner

 

[xyxmt]

And what to do about peoples pensions..
Invest expand with private patner

well if you dont learn from history then you keep making same mistake
instead of spending 100 million on it for it to go down hill again in 5 years, use that money to pay lump sum to current empl and pensioners. This steel mill burn dollars to produce steel

 

[imadul]

well if you dont learn from history then you keep making same mistake
instead of spending 100 million on it for it to go down hill again in 5 years, use that money to pay lump sum to current empl and pensioners. This steel mill burn dollars to produce steel

Yes, should be privatised or leased as one member suggested. Govt can't run it efficiently. These govt orgs are just employment dumping grounds for loot for govts like PPP and pmln.

 

[Paul2]

My views,
1. Revival of Steel plant is possible. China can help in rebuilding the plant in cost effective manner. Considering the availability of land, 3 MTPA steel plant is possible on existing land.
2. I am not aware of availability of raw material. Hoping that it is not big problem.
3. Biggest challenge will be competition from imported Chinese steel. Pakistan shares friendly relation with China, it may be difficult to impose anti dumping duty on Chinese steel.
4. Above problem can only be solved, if Pakistan decides to produce some special category steel in new plant and put restriction on import of the same.

In defence of China, it is not only China that does dumping of steel, but also India, Russia, Brazil, big part of European nations, and finally USA

In this light, I put into doubt creating a new steel mill anywhere in the world, not only Pakistan