Options discussed to restart PSM

KARACHI: The Board of Business Development Committee (BDC) of Pakistan Steel Mills (PSM) has called for concerted efforts to restore production capacity of mills to one million tons/annum and gradually extending it to three million tons, as per the demand in the country.

Board meeting chaired by Mohammad Raziuddin highly appreciated the government’s political philosophy focused on re-operationalisation of PSM since it is the only primary steel manufacturing plant in the country that holds its peculiar national strategic value.

The members were of unanimous opinion that re-operationalisation of PSM would help contribute to the large scale manufacturing (LSM) growth, besides meeting the needs of downstream industry.

The committee discussed varied options to restart PSM that holds higher probability of financial sustainability, least cost, early start and also keeping its existent human resource intact.

BDC took into account that blast furnaces of PSM have been adversely damaged primarily due to abrupt closure of the supply of natural gas in 2015.

In the given situation, the members of the committee observed that major repairs, including replacement of two blast furnaces was the major cost component of repairs and replacements needed in the plants and equipment of PSM.