Management at Amreli Steel today approved second phase of expansion of the existing rolling mill with a total cost of Rs. 2 billion to increase production by 95,000 metric tons per annum, informed the company notice addressed to exchange. The Steel manufacturer also mentioned that in order to expand and modernize the plant, the existing plant will be shut down for ten (10) months from June, 2019 to March 2020.
Amreli Steel today announced that the Board of Directors at the company have approved for the second phase of the expansion of the company. The company notice, addressed to the exchange, wrote that “based on technical & financial feasibility and after evaluating various viable options, the management has finalized the expansion and modernization of existing rolling mill of the company situated at S.I.T.E. Karachi with a total estimated cost of Rupees 2 billion”.
Additional investment will help Amreli Steel’s existing plant to increase capacity from 180,000 metric tons per annum to 275,000 metric tons per annum. Earlier estimates of increasing the capacity of 325,000 metric tons per annum were revised after carrying out the feasibility studies.
The plant will be updated during the 10 months spawning from April, 2019 to March, 2020 during which a shutdown of the existing plant would be imperative. According to the company estimates, barring any unforeseen circumstances, the newly revamped and modernized plant will resume production of re-bars by the end of April, 2020.
The said notice can be accessed here.
