ajpirzada
SENIOR MEMBER
- Joined
- Mar 4, 2008
- Messages
- 6,011
- Reaction score
- 11
- Country
- Location
THE federal government has decided to take Heavy Mechanical Complex, Taxila off the privatisation list and major policy measures are in hand to make it viable for a long term.
An ambitious balancing, modernisation, rehabilitation and expansion estimated to cost Rs21.54 billion is under consideration at the Planning Commission, while the Economic Affairs Division is seeking project financing of $156.44 million to cover its foreign exchange component.
The Design Centre of the HMC is to be upgraded at a total cost of Rs665.38 million and the scheme is before the government for necessary financial and administrative approval. Renewed emphasis is being placed on strengthening its human resources that have depleted significantly in past years as the company remained on the divestment list for more than two decades. A large number of engineers belonging to various disciplines are being inducted to be imparted advanced training in selected fields, within the country as well as abroad.
The complex employs more than 1000 professionals, technicians and workers. The company having certification of international standards and qualifications such as ISO, American Boiler Board, ASME and TUV etc, is profitable despite technological and financial constraints. For the fiscal year ending June 30, 2010, the company has achieved record sales of two billion rupees. It has earned gross profit of Rs187 million and orders in hand valuing Rs1,400 million, with additional orders in the pipeline.
HMC, a strategic industrial unit is the largest engineering, designing and manufacturing organisation professionally managed and is spread over an area of 2.31 sq km. It works under two names, Mechanical Division and Foundry and Forge Division established under the Chinese technical and economic assistance. .
Production facilities were established during 1960s-1970s and have become outmoded since no major investment was made in subsequent years to modernise installed machinery. Though rehabilitation of major machines has been done on a regular basis with the help of the Chinese, plant capability is no more compatible. It is planned to upgrade the plant and general purpose machinery and material handling equipment will be refurbished.
Steel melting, casting and forging facilities will be overhauled and upgraded by installing modern instrumentation and by adding an induction furnace and a heavy duty forging press. Heavy duty computer, numerically controlled (CNC) machines, precision welding machines, material preparation equipment and others will also be installed.
HMC has a well-equipped product design and engineering office, with modern computer-based hardware and software facilities. Technology acquisition and assimilation has been successfully done, through technology transfer agreements and under joint ventures with foreign companies. This not only enabled HMC to become market leader in supply of sugar mills and cement plants on turn-key basis domestically, it also placed Pakistan on export map..
The domestic market for sugar and cement having been saturated for quite sometime, the company needed diversification of its production programme. Concerted efforts were made in this direction but plans did not materialise, primarily due to non-availability of requisite foreign technology, lack of government support and inconsistent policies. Thus, the HMCs competitive edge has eroded over a period of years. The complex now plans to expand and diversify its products range to cover equipment for energy, chemical, petrochemical, agro-based and other industries and infrastructure sector, besides acquiring latest technology for its product line.
A well-conceived business plan, on short and long-term basis is in place, projecting annual sales after initial five years of completion of the BMRE at about Rs15 billion. HMC has firmed up its programme to manufacture, in a big way, major and critical equipment for power generation plants based on various energy resources. The comprehensive product range will include equipment for hydroelectric, coal-based, thermal, wind power, urban and industrial waste power, in line with the projections of the National Security Power Plan 2005-2030. The management aims at supplying small hydropower and wind energy plants on turn-key basis in near future.
The list of thermal power plants for which the company manufactured substantial equipment includes Kescs Bin Qasim 2x210 mw, Wapda/Pepcos Muzaffargarh 1x 320 mw and the IPPs such as Hubco and AES Lalpir power stations. Likewise, HMC has contributed towards supply of machinery and equipment for medium and mega hydropower projects like Malakand III, Ghazi Barotha, Warsak and Tarbela, besides installing a number of small and mini hydropower projects in the Gilgit-Baltistan and the Azad Jammu & Kashmir (AJK). Orders are under execution at HMC workshops for small hydropower projects being constructed in the AJK.
To enlarge its scope of supply of equipment and technical services for energy and industrial sectors, HMC will develop further its design and engineering capabilities. It is now planned to upgrade the Design Centre, with focus on adoption and adaptation of latest technology in the new areas of business. The modern engineering and manufacturing technology related to various industrial sectors has to be acquired from foreign sources. The proposed strengthening and capacity-building of the product design office include additional state-of-the-art facilities for computer-aided design (CAD) and computer-aided engineering (CAE), which will be integrated with computer-aided manufacturing (CAM).
The restructuring plan, consisting of the BMRE of production facilities, strengthening of Design Centre and procurement of technology, is envisaged to be completed in three years after approval. Logically, China would be the best partner for technical and financial assistance required for implementing the plan. In the past, China has helped Pakistan in establishing a strong base for heavy engineering industry, and is again willing to support the governments roadmap for strengthening the sector. Another determinant factor for partnership with the Chinese will be the continued interest shown by them in the development of a number of hydropower projects.
During the visit of President Zardari to China in the month of July, the Chinese government indicated to support Pakistans endeavours to overcome persistent power shortages, extending economic assistance of $10 billion for construction of hydropower and alternate energy (wind farm) projects. HMC can effectively promote joint ventures with the Chinese companies to be involved in construction of the identified projects, for indigenous manufacturing of related equipment, under technology transfer arrangements.
(Engr Hussain Ahmad Siddiqui is retired Chairman of the Heavy Mechanical Complex)
DAWN.COM | Economic & Business | Restructuring Heavy Mechanical Complex
An ambitious balancing, modernisation, rehabilitation and expansion estimated to cost Rs21.54 billion is under consideration at the Planning Commission, while the Economic Affairs Division is seeking project financing of $156.44 million to cover its foreign exchange component.
The Design Centre of the HMC is to be upgraded at a total cost of Rs665.38 million and the scheme is before the government for necessary financial and administrative approval. Renewed emphasis is being placed on strengthening its human resources that have depleted significantly in past years as the company remained on the divestment list for more than two decades. A large number of engineers belonging to various disciplines are being inducted to be imparted advanced training in selected fields, within the country as well as abroad.
The complex employs more than 1000 professionals, technicians and workers. The company having certification of international standards and qualifications such as ISO, American Boiler Board, ASME and TUV etc, is profitable despite technological and financial constraints. For the fiscal year ending June 30, 2010, the company has achieved record sales of two billion rupees. It has earned gross profit of Rs187 million and orders in hand valuing Rs1,400 million, with additional orders in the pipeline.
HMC, a strategic industrial unit is the largest engineering, designing and manufacturing organisation professionally managed and is spread over an area of 2.31 sq km. It works under two names, Mechanical Division and Foundry and Forge Division established under the Chinese technical and economic assistance. .
Production facilities were established during 1960s-1970s and have become outmoded since no major investment was made in subsequent years to modernise installed machinery. Though rehabilitation of major machines has been done on a regular basis with the help of the Chinese, plant capability is no more compatible. It is planned to upgrade the plant and general purpose machinery and material handling equipment will be refurbished.
Steel melting, casting and forging facilities will be overhauled and upgraded by installing modern instrumentation and by adding an induction furnace and a heavy duty forging press. Heavy duty computer, numerically controlled (CNC) machines, precision welding machines, material preparation equipment and others will also be installed.
HMC has a well-equipped product design and engineering office, with modern computer-based hardware and software facilities. Technology acquisition and assimilation has been successfully done, through technology transfer agreements and under joint ventures with foreign companies. This not only enabled HMC to become market leader in supply of sugar mills and cement plants on turn-key basis domestically, it also placed Pakistan on export map..
The domestic market for sugar and cement having been saturated for quite sometime, the company needed diversification of its production programme. Concerted efforts were made in this direction but plans did not materialise, primarily due to non-availability of requisite foreign technology, lack of government support and inconsistent policies. Thus, the HMCs competitive edge has eroded over a period of years. The complex now plans to expand and diversify its products range to cover equipment for energy, chemical, petrochemical, agro-based and other industries and infrastructure sector, besides acquiring latest technology for its product line.
A well-conceived business plan, on short and long-term basis is in place, projecting annual sales after initial five years of completion of the BMRE at about Rs15 billion. HMC has firmed up its programme to manufacture, in a big way, major and critical equipment for power generation plants based on various energy resources. The comprehensive product range will include equipment for hydroelectric, coal-based, thermal, wind power, urban and industrial waste power, in line with the projections of the National Security Power Plan 2005-2030. The management aims at supplying small hydropower and wind energy plants on turn-key basis in near future.
The list of thermal power plants for which the company manufactured substantial equipment includes Kescs Bin Qasim 2x210 mw, Wapda/Pepcos Muzaffargarh 1x 320 mw and the IPPs such as Hubco and AES Lalpir power stations. Likewise, HMC has contributed towards supply of machinery and equipment for medium and mega hydropower projects like Malakand III, Ghazi Barotha, Warsak and Tarbela, besides installing a number of small and mini hydropower projects in the Gilgit-Baltistan and the Azad Jammu & Kashmir (AJK). Orders are under execution at HMC workshops for small hydropower projects being constructed in the AJK.
To enlarge its scope of supply of equipment and technical services for energy and industrial sectors, HMC will develop further its design and engineering capabilities. It is now planned to upgrade the Design Centre, with focus on adoption and adaptation of latest technology in the new areas of business. The modern engineering and manufacturing technology related to various industrial sectors has to be acquired from foreign sources. The proposed strengthening and capacity-building of the product design office include additional state-of-the-art facilities for computer-aided design (CAD) and computer-aided engineering (CAE), which will be integrated with computer-aided manufacturing (CAM).
The restructuring plan, consisting of the BMRE of production facilities, strengthening of Design Centre and procurement of technology, is envisaged to be completed in three years after approval. Logically, China would be the best partner for technical and financial assistance required for implementing the plan. In the past, China has helped Pakistan in establishing a strong base for heavy engineering industry, and is again willing to support the governments roadmap for strengthening the sector. Another determinant factor for partnership with the Chinese will be the continued interest shown by them in the development of a number of hydropower projects.
During the visit of President Zardari to China in the month of July, the Chinese government indicated to support Pakistans endeavours to overcome persistent power shortages, extending economic assistance of $10 billion for construction of hydropower and alternate energy (wind farm) projects. HMC can effectively promote joint ventures with the Chinese companies to be involved in construction of the identified projects, for indigenous manufacturing of related equipment, under technology transfer arrangements.
(Engr Hussain Ahmad Siddiqui is retired Chairman of the Heavy Mechanical Complex)
DAWN.COM | Economic & Business | Restructuring Heavy Mechanical Complex