Six parties interested in buying PSM: minister

[shahbaz baig]

Sir who ever will buy this steel mill.The First thing he will do he will scrap the whole mill.This mill is of no use right now.Its like garbage now.Setting up a State of the art steel mill of 1 million ton capacity costs only $500 million.You donot need army 20000 people to run this mill.New technology mills are very cost effective.You need few thousand peoples to operate the whole mill efficiently .

Seriously What are you taking about ???? name me the stupid who first buy and then more invest to scrap the whole mill. Rather That person or organization can build still mill anywhere in the world.

Yeah PSM can be revived from scratch with it's existing production capabilities.

 

[Shahzaz ud din]

Seriously What are you taking about ???? name me the stupid who first buy and then more invest to scrap the whole mill. Rather That person or organization can build still mill anywhere in the world.

Brother it is not a small mill.It is a gigantic industrial complex spread in area of almost 25 km.It has its own sea port, railways, downstream industry, townships, residential colonies, stadiums,commercial markets, cinemas, golf clubs, very good school system,several inter and degree colleges, cadet college .Hundreds of valuable properties are spread all over Pakistan.It owns several mines as well .Its actual worth is in several billion dollars.Chinese are operating this kind of mills in hundreds in China.Steel is very profitable business.Its demand is increasing manifold in Pakistan. Till today Pakistan is importing $5-$6 billions of steel products from abroad every year.

 

[shahbaz baig]

Brother it is not a small mill.It is a gigantic industrial complex spread in area of almost 25 km.It has its own sea port, railways, downstream industry, townships, residential colonies, stadiums, cinemas golf clubs, very good school system,several inter and degree colleges.Hundreds of valuable properties spread all over Pakistan.It owns several mines as well .Its actual worth is in several billion dollars.Chinese are operating this kind of mills in hundreds in China.Steel is very profitable business.Its demand is increasing manifold in Pakistan. Till today Pakistan is importing $5-$6 billions of steel products from abroad every year.

I got now you meant to say scraping the main plant in your previous reply.

As you said Pakistan is importing $5 to 6$ billions steel products from abroad. Do you really think it will be reduced after privatising PSM?

Why Don't Pakistan privatize it on
Govt- Private bases on 50,50 shares?

Management, jobs and initial amount should come from private party and price control should be monitored & set by the Govt for country only. Or similar framework.

Make your own pakistani legend industrialist rather then other country & save money in pakistan. What about this idea?

 

[Shahzaz ud din]

I got now you meant to say scraping the main plant in your previous reply.

As you said Pakistan is importing $5 to 6$ billions products from abroad. Do you really think it will be reduced after privatising PSM?

Why Don't Pakistan privatize it on
Govt- Private bases on 50,50 shares?

Management, jobs and initial amount should come from private party and price control should be monitored & set by the Govt for country only. Or similar framework.

Bro I served in this mill for several years.The reason of its destruction is political interference.It became basically an employment agency for the political parties.Whoever comes in power hires 2-3 thousand of his affiliates.Worker unions were the actual culprits.At that time there were more than 24000 people were working but actual needed work force was 14000 only.When it was set up in seventies it was decided to enhance its capacity upto 10 million tons per year but they couldn't. There was only one year in Musharaf time when they were able to produced 1 million ton.
As you said Pakistan is importing $5 to 6$ billions products from abroad. Do you really think it will be reduced after privatising PSM?
Off course Pakistan needs quality steel products.It will help to save foreign capital as well.
Why Don't Pakistan privatize it on
Govt- Private bases on 50,50 shares?
Not feasible.A window will remain open for political parties and their proxy unions to poke their nose in its affairs.
I got now you meant to say scraping the main plant in your previous reply.
Oh yes only scrapping the main plant.Replacing the current Russian tech with state of the art American or Chines technology.

 

[shahbaz baig]

@Shahzaz ud din
Bro I served in this mill for several years.The reason of its destruction is political interference.It became basically an employment agency for the political parties.Whoever comes in power hires 2-3 thousand of his affiliates.Worker unions were the actual culprits.At that time there were more than 24000 people were working but actual needed work force was 14000 only.When it was set up in seventies it was decided to enhance its capacity upto 10 million tons per year but they couldn't. There was only one year in Musharaf time when they were able to produced 1 million ton.

I know bro It's really a sad state of affairs.

Off course Pakistan needs quality steel products.It will help to save foreign capital as well.
It will depend on total cost of final required
Steel, which should be cheap then international market, otherwise if the rate is set for the country accordingly international market rate of the steel there will be a peanut reduction in buying steel for the country even from PSM.

Not feasible.A window will remain open for political parties and their proxy unions to poke their nose in its affairs.

That is why I said in my previous comment. Management, jobs including locals and initial amount till production should be done by private party but price control should be monitored & set by the Govt for country only.

 

[jupiter2007]

Total worth of PSM at that time was 22 billion rupees or around $400 millions.
But till now accumulative loss is almost $6 billion -$8 billion only

We will continue to lose money until governments privatize it.

 

[CrazyZ]

Steel is a global industry and there is actually a global over supply. PSM as a government entity can not compete in the global environment. Better to privatize it.