Amreli Steels embarks on third phase of its expansion plan

November 9, 2018 (MLN): The Board of Directors of Amreli Steels Limited (ASTL) has approved the third phase of expansion plan for setting up an additional state-of-the-art rolling mill using Pioneering Technology at Dhabeji to further expand its rebar manufacturing facilities.

According to the notification issued to PSX, this new investment proposal, subject to the approval of technical feasibility and successful financial close, would raise existing rolling capacity of the company from 605,000 metric tons per annum to 1,105,000 metric tons per annum and is expected to complete in three years’ time from financial close.

The estimated cost of the expansion plan is approximately Rs.6.5 billion which will be financed through bank borrowings and internal cash resources.

Internationally reputed consultancy firms have been invited to submit their bids for final selection to commence the technical feasibility of the proposed project.

By installation of this new facility, the company will have the largest capacity in Pakistan for producing high quality rebars with economies of scale in terms of conversion cost.

Furthermore, the Board of Directors had a detailed deliberations on the expansion plan regarding revamping of its existing S.I.T.E rolling mill which would have increased production capacity from 180,000 to 275,000 metric tons per annum.

Based on these deliberations, the company has decided to rescind the revamping plan of the company’s S.I.T.E rolling mill due to the above expansion at Dhabeji.

Accordingly, there would be no shutdown for a period of ten months (expected from June 2019 to March 2020) as was earlier intimated in their notification dated 20 February 2018.

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