November 17, 2022 (MLN): The Board of Directors of Beco Steel Limited on Thursday approved the feasibility of installing a new automated mill inside Unit I, the company filing on PSX showed.

The need for an automated mill arose due to the high cost of furnace oil, Sui Gas, and imported coal for re-heating MS Billets, previously having 12 tons furnace which produces billets but now this will be a composite unit.

This unit will use hot direct rolling technology to manufacture angle and channel bars, increasing rolling capacity by 4500 per metric ton per month, the notification sent to PSX added.

The company's production capacity and sales volume will increase while saving approximately Rs15 million per month on Furnace Oil and Sui Gas.

“With this expansion, we will be required to purchase local billets from the local market in order to supply our Unit 2. (Guarder mill),” the notification read further.

The new mill is expected to cost Rs400 million and will be completed in April 2023.

Beco Steel Limited currently does not have any bank borrowings. In the best interests of the company's profitability and shareholders, management is arranging funds through internal sources and a third party at a low-interest rate, it said.

The company is hopeful that the impact of this plant will increase profitability in the fourth quarter.

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Posted on: 2022-11-17T15:32:18+05:00