BEIJING – Three Chinese companies including the Metallurgical Corporationof China (MCC) have shown interest to revive Pakistan’s largest steelmanufacturing complex, Pakistan Steel Mills (PSM).
By promoting the local economy and helping to improve social welfare, MCCis dedicated to becoming a model business in boosting economic cooperationbetween China and Pakistan.
As a state-owned company in the iron and steel industry, MCC is one of theearliest Chinese companies to operate businesses and projects in Pakistan.In 1990, MCC managed the construction of the Saindak Copper-Gold Mine basedon an engineering, procurement and construction contract, China EconomicNet (CEN) reported.
Saindak Copper-Gold Mine has made a steady profit for 18 consecutive years,becoming a major driver of the local economy and praised by governments onboth sides as “a model of China-Pakistan economic cooperation”. GuoWenqing, Chairman MCC had also met Prime Minister Imran Khan, to discusscooperation and prospects of joint ventures in energy, industrial andvarious other sectors.
Sources at the Privatisation Commission of Pakistan said earlier that thegovernment is expecting at least $1 billion in foreign investment by theend of the year to revive PSM. Investors from Russia are also displayinginterest in running the facility as part of a consortium.
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PSM has the capacity to expand to produce three million tons of cold andhot-rolled steel annually. The plan includes creating a new subsidiary,Steel Corp Limited, on the premises of the Pakistan Steel Mills to offerthe mammoth industrial unit to foreign investors. Instead of selling orprivatising the Mills, the government aims to revive the operation andproduction of the unit with the help of foreign investors to meet thegrowing local demand for steel.
Pakistan’s annual steel demand stands at about eight million tons whereaslocal production fluctuates in the range of three to four million tons. Thecountry fills the gap by importing steel and iron from Japan and othercountries. Last year, six Russian firms including the METPROM Group, fourUkrainian entities including Ukrainian National Foreign EconomicCorporation, one American firm and three Pakistani companies also expressedinterest in running the facility.
