PM Imran to offer Pakistan Steel Mills to China

[ziaulislam]

WTF !

PSM can be easily turned around , not rocket science , many private steel makers in pakistan have offered to turn around PSM . even the russians have offered assistance


why not hand over the PM seat to china as well mr niazi , since you are not performing

actually the issue is clearly finanaces..
you need 5-6billion dollars to turn it around do you have it..
govt cant spare a billion let alone 800billion being in tight IMF fiscal discipline

but Chinese wont take the steel mills why should they that business to much competitive
so is the airline business

 

[HAIDER]

But anyway, may be its agreement . China will run the PSL and take profit and finance ML1 project.

 

[niaz]

Are there no Pakistani industrialists willing to take over the steel mill, overhaul and relaunch it, and repay the government over a period of say ten to fifteen years?

@niaz @messiach @Oscar

Hon Rampage,

Iron/steel manufacture is about 3000 years old and even modern processes such are Arc Furnace & Oxygen Furnace do not classify as ‘Rocket Science’ hence technology is not a problem. The problem is production cost and the economy of scale.

Chinese steel plate is currently the cheapest in the world. Firstly because of the lower labor cost and secondly because the rapidly expanded Chinese steel production resulted in surplus capacity. This is evident from the fact that Chinese steel output increased from about 66-million tons in 1990 to more than 800-million tons by 2014.

Western Steel Manufacturers are unable to compete and several Steel Mills have been forced to close down. Steel manufacturers have been accusing China of ‘Dumping’ that is, selling at a loss to keep their labor force employed, for quite some time. India, Indonesia & the USA have increased import duty on Chinese steel imports to support the indigenous steel industry.

PSM is 50 years old and needs a complete renovation. Capital outlay for modernization of an integrated steel mill like the PSM would be at least $1-billion if not more. (In Dec 2018, Vedanta Group of India announced setting up of 1-million ton capacity Steel plant in Jharkhand for $3.13-billion)

IMHO, it would be close to impossible to find a Pakistani entrepreneur to risk that level of money into renovating PSM. However, steel being the backbone of the industry, you would not like to depend entirely on imports. I would, therefore, say that seeking Chinese assistance is a very good option. But would China accept this offer?

 

[Thorough Pro]

It's just like a hindu slaughtering a chicken would be haram but a Muslim slaughtering it would be halal. It's all in the intentions.

This offer was haram in previous governments but because holly Niazi is doing this, it is now halal.

This holy niazi is actually more crap than any previous leader of Pakistan.

 

[Flight of falcon]

This offer was haram in previous governments but because holly Niazi is doing this, it is now halal.

This holy niazi is actually more crap than any previous leader of Pakistan.

Let’s talk about this Steel Mill story. Now before you try to challenge me let me tell you that my Father was the chief technical officer for this mill and stayed in Russia for two years learning how to install and run this mill. After the installation was completed my father resigned with in a year. He was a PhD from Canada and wasted three years of his life thinking he was helping his country .

This whole project was basically a creation of corruption pit for PPP. This pit is bottomless.... you can throw in entire Pakistan and this shit will not produce profit. It couldn’t from the get go . It was designed keeping in mind that raw material will be imported . Steel is available cheaper than the cheapest steel that can be produced in a 50 year old design and machinery of this mill. It cannot be updated .... it needs to be removed and reinstalled.

PPP forced my dad to hire hundreds of uneducated perchi folks from interior Sindh to run day to day operation which they could not understand at all. They were mostly PPP jayalays. MQM leader haider Rizvi’s dad was my father’s typewriter operator.

PPP ate billions of dollars from this relic. There is nothing left of it except real estate.

As for selling it Nawaz was the worst when it came to sell. He wanted to give it away for free to anyone willing to buy PIA . As bad as PPP was and is, Nawaz takes corruption to even higher levels.... so hard to believe but true.

Nawaz wanted to give this asset for free to Mansha group which is a front man for Nawaz family.

I leave it upto your imagination what is going on.

IK should Get rid of it soon and he will do the best job disposing it because he is not product and offspring of haramis like Bhutto clan and Nawaz clan are...

IK needs to PTI privatize this.... my sympathies for 1000s if workers who never showed up for work but got paid its time to stop sucking blood.... there is no blood left.

As for the soldier haramkhour Patwaris who come here to support their harami leader I have one suggestion for you all...... stop blaming But IK and start seeing the truth ..... and your next generation may dislike haram .

 

[rambro]

They have revitalised steel mills in countries in europe that nobody wants to touch with a 10 foot pole...its not their first time.

 

[Syed1.]

Those suggesting to give it to Pakistani industrialists, who do you think has $3-5 billion in hard cash just lying around and is willing to invest in Pakistan?


That's the thing about online forums half the members (mainly patwaris) do not even have the mental capability to run a paan ka khoka and here they are masquerading as experts on economy, industry and everything else on God's green earth.

 

[Flight of falcon]

They have revitalised steel mills in countries in europe that nobody wants to touch with a 10 foot pole...its not their first time.

Not possible here.... machinery is obsolete .... supply chain is Non existent. Chinese dump steel at the price one can dream of
Matching and the raw material is expensive and stupid unions are sucking the blood out like in no other country. Would you hire thousands of unskilled political workers to work in your investment?

 

[Syed1.]

Not possible here.... machinery is obsolete .... supply chain is Non existent. Chinese dump steel at the price one can dream of
Matching and the raw material is expensive and stupid unions are sucking the blood out like in no other country. Would you hire thousands of unskilled political workers to work in your investment?

Can't wait for these thousands of jiyalas to go jobless. Buhat kha liya inhoon ne, ab insay nichoornay ki baari hai.

 

[V. Makarov]

I dont know why some members are getting so emotional over the Steel Mills. If our leaders were half as empathetic towards that industry, it would have been making profit. It was gradually destroyed by PPP and PMLN by inducting thousands of ghost workers and bad policies. Now only a 'Corporate' model will save that industry. No one in Pakistan can provide that sort of corporate model hence we have to ask China to help us.

 

[Nilgiri]

Hon Rampage,

Iron/steel manufacture is about 3000 years old and even modern processes such are Arc Furnace & Oxygen Furnace do not classify as ‘Rocket Science’ hence technology is not a problem. The problem is production cost and the economy of scale.

Chinese steel plate is currently the cheapest in the world. Firstly because of the lower labor cost and secondly because the rapidly expanded Chinese steel production resulted in surplus capacity. This is evident from the fact that Chinese steel output increased from about 66-million tons in 1990 to more than 800-million tons by 2014.

Western Steel Manufacturers are unable to compete and several Steel Mills have been forced to close down. Steel manufacturers have been accusing China of ‘Dumping’ that is, selling at a loss to keep their labor force employed, for quite some time. India, Indonesia & the USA have increased import duty on Chinese steel imports to support the indigenous steel industry.

PSM is 50 years old and needs a complete renovation. Capital outlay for modernization of an integrated steel mill like the PSM would be at least $1-billion if not more. (In Dec 2018, Vedanta Group of India announced setting up of 1-million ton capacity Steel plant in Jharkhand for $3.13-billion)

IMHO, it would be close to impossible to find a Pakistani entrepreneur to risk that level of money into renovating PSM. However, steel being the backbone of the industry, you would not like to depend entirely on imports. I would, therefore, say that seeking Chinese assistance is a very good option. But would China accept this offer?

Why not skip highly capital-intensive industries like steel altogether...import cheap steel from china (or whomever can quote you best price)....and focus on steel processing industries (i.e converting steel into products for consumer use) that generate the most value addition and jobs for every dollar you invest (i.e not so capital intensive and more labour intensive)?

Huge part of why such state owned steel enterprises in smaller/medium world economies fail is because of the capital sink problem intrinsic to industry that attracts the usual bureaucratic corruption like flies to a bad festering smell.

 

[Kabira]

I dont know why some members are getting so emotional over the Steel Mills. If our leaders were half as empathetic towards that industry, it would have been making profit. It was gradually destroyed by PPP and PMLN by inducting thousands of ghost workers and bad policies. Now only a 'Corporate' model will save that industry. No one in Pakistan can provide that sort of corporate model hence we have to ask China to help us.

China can take that risk because there is hardly any risk for them. Did you know China is still working on Balochistan mines? While we all know what happened to Reko Diq.

Once PSM is taken over by China then even PPP will not be able to do anything. And PMLN was in favour of selling all public entities including PSM, PIA. But protests from PPP along with PTI against national interest prevented that.

 

[Yankee-stani]

The folks making a big deal forget to understand one point about Pakistan State Mills it was not done on organic and indigenous manner in fact the Steel Mill was set up by then Soviet Union ironic completed in the mid 80s and the few years later USSR would bite the dust and guess what no help pure irony we were anti Soviet in the 80s tho the plant plans did go back to the mid 70s when ties with USSR were cordial and were warming up to the point until 1979 (*arghhh Breznev wtf you bumrushed to help those stinky Afghans in Kabul) anyways my point is to help revive the Pakistan Steel Mills I dont see an issue with China helping out or the Chinese running the operation when the operations were originally built and for brief time were operated by the Soviets there is nothing wrong in getting help from foreign countries who have better expertise but I get the concerns from folks who think we are getting to dependent on the PRC.

"The entire funding for setting up the Mills came from the Soviet Union — some in the form of cash for constructing the buildings, roads, railtracks, conveyor belts, etc, and the rest in the form of finished products.

After the ceremony, Haq spoke to reporters and claimed that the Soviet Union had offered to set up a second steel mill in Pakistan. “We welcome this gesture and will consider it at the right time,” he said. The irony is that Pakistan, at the time, was also waging a proxy war in Afghanistan against the Soviet Union."

-https://herald.dawn.com/news/1153574

*oh the sheer irony @Indus Pakistan

 

[niaz]

This whole project was basically a creation of corruption pit for PPP. This pit is bottomless.... you can throw in entire Pakistan and this shit will not produce profit. It couldn’t from the get go . It was designed keeping in mind that raw material will be imported . Steel is available cheaper than the cheapest steel that can be produced in a 50 year old design and machinery of this mill. It cannot be updated .... it needs to be removed and reinstalled.

Hon Flight of falcon,

Being in the oil industry where one is constantly engaged in either upgrading machinery or building new storage tanks; I had the opportunity to be familiar with the steel plate prices as it affects the cost of new pipelines and storage tanks.

I am in agreement with all of your assertions except you indirectly implying that PSM never made a profit. There was a steel price boom between 2001 & 2008. It can be checked with the OECD Report of 2009.

https://www.oecd.org/sti/ind/43312347.pdf

PSM also benefitted from the high international steel prices and made a profit in some years even though arguably it was not because PSM was run efficiently but because international steel prices had skyrocketed.

https://fp.brecorder.com/2004/06/20040608114285/

However it is an undeniable fact that being obsolete as well as overstaffed, PSM is inherently a loss-making concern. A regrettable ground reality with the gov't owned /run establishments in Pakistan.

 

[RoadRunner401]

I dont know why some members are getting so emotional over the Steel Mills. If our leaders were half as empathetic towards that industry, it would have been making profit. It was gradually destroyed by PPP and PMLN by inducting thousands of ghost workers and bad policies. Now only a 'Corporate' model will save that industry. No one in Pakistan can provide that sort of corporate model hence we have to ask China to help us.

Please stop, lots and lots of Pakistani businessman can buy this overnight, but this monster comes with all the workers and unions that are still getting paid by the state, even though this mill sits shut for years, sorry, most real business people don't have the time to deal with that headache.. Chinese or any other foreign nationals are the logical choice as they aren't Pakistani national and can easily get rid of all unions and political appointees without getting death threats from MQM and PPP... Thanks but no Thanks..