Tuwairqi Steel capacity upgrading: South Korean company to invest $200 million

South Korean Company Posco would invest $200 million to upgrade the production capacity of Tuwairqi Steel Plant at Port Qasim, Karachi. An MoU for undertaking joint venture between the two companies would be signed during next month in the presence of Sindh government. In this connection, a delegation of POSCO Ltd South Korea headed by Baek, SVP, POSCO Korea, met Saleem Mandviwalla, Chairman, Board of Investment (BOI) on Friday.
Baek informed the chairman of BOI that the construction unit POSCO Engineering & Construction will build the plant with the side aim of winning other such plant deals in Pakistan. He said that POSCO's production is around 37 million tons per annum whereas in 2010 its revenues stood at $45 billion. It occupies 4th position among all the steel producing companies of the world whereas it has top position in Asia. Both POSCO and Al Tuwairqi Holding of Saudi Arabia (the parent company of TSML) are in the steel business.
POSCO is in steel business for the last four decades whereas Al Tuwairqi is in steel business since late 1980. Al Tuwairqi Holding is establishing a state-of-the-art steel complex with an operational capacity of 1.28 million tons per annum of DRI plant in first phase at Port Qasim, Karachi.
POSCO in Pakistan will be a great success not only in monetary terms but its position as a technology leader in the steel sector from which Pakistan can benefit to a larger extent. The gap between demand and supply is met through imports and the demand for steel products is around 8.00 million tons against the supply of around 2 million tons, said by Chairman BOI.