Pak China Steel, the first private blast furnace and manufacturing plant of pig iron in Pakistan, has commenced operation with an investment of US$12 million. The newly setup steel plant is a joint venture of Chinese Jianbang Group and Pakistani Consortium that focused on catering the infrastructure needs of private sector particularly China-Pakistan Economic Corridor (CPEC).
Talking to the media at Pak-China Steel plant at Port Bin Qasim on Saturday, Xiaonian Wu, chairman of Shanxi Jianbang Group said that Pak China Steel was established in March this year with an investment of $12 million to cater the pig iron needs of the local industry, which is currently importing it from other countries due to closure of Pakistan Steel Mills.
In the first phase, the installed production capacity is 8,000 tons pig iron per month and second phase of production will become additional and high in volume, he said, adding that at present the plant is producing 4,000 to 5,000 metric ton pig iron per month which would be gradually increased.
Wu further said that the coal-fired blast furnace is the first facility in private sector of the country which utilizes the indigenous iron ore extracted from the mines of Balochistan. "Raw materials such as iron ore and limestone are being generated from local resources while metallurgical coke is being imported from China," he said, adding that Pakistan has huge potential in the steel industry and this project has brought a comprehensive range of technical and operational equipment in Pakistani market.
Singapore based company Leon Overseas act as third party by establishing a laboratory of international standards at a cost $0.3 million to enable the Pak China Steel to check the quality of the products efficiency within 24 hours. In addition, comprehensive tests are being conducted to ensure world class quality of pig iron.
Shanxi Jianbang Group chairman said that the newly setup Pak China Steel would be a fabulous chapter in the industry of Pakistan and the facility is being run by Pakistani management supported by the Chinese technical experts.
The project has provided employment opportunities to 200 locals while some 60 Chinese nationals are providing technical support to run the plant, Wu said, adding that with thirty-year experience in steel sector, Jianbang Group is based in Shanxi China and now entered into Pakistani market to cater the domestic demand.
He said they would setup the second plant in a different region of Pakistan to bring new technology in Pakistan's steel industry. "CPEC is real game changer in the region and beyond promoting quality and competitiveness worldwide and it will further cement Pak china friendship and open new avenues for economic activity in the country," he said.
Mustafa Dawood, local partner of Pak China Steel, said that after the closure of Pakistan Steel Mills, the domestic demand of pig iron is currently being met through imports and ship-breaking industry. "We want to provide a complete substitute of imported pig iron to reduce the import bill," he said, adding that leaders in the auto mobile, construction and casting business would be prime customers of high-quality pig iron being produced in energy efficient blast furnace.
Pak China Steel's director Li Felix said this is the first collaboration of Pakistan and China in steel sector and in the next phase, the management is planning to setup billet plant to cater the domestic demand. On the occasion, Pak China Steel directors Li Duo and Jam Asif and Marketing head Sheharyar Khan were also present.