Pakistan Steel Mills Corporation (PSMC) spokesman said on Wednesday that two shipments of raw material are scheduled to arrive this month and there is no chance of closure of the mill, as the current management is trying to maintain the supply chain of raw materials.
He said these ships containing 55000 Mt Iranian fine iron ore and 55000 Mt coal will help Pakistan Steel to maintain its production wheel run smoothly. He added that due to low capacity utilisation Pakistan Steel is currently facing accumulated loss of about Rs 40 billion and the total liabilities as on September 15, 2011 stood at Rs 55.497 billion, while the salaries of workers and officers, are still being made on a monthly basis without fail. Salaries for the month of August 2011 to all officers and worker have already been disbursed.
Drop in capacity utilisation is due to very high prices of coal in the international market in quarters April-June, 2011 and July-September, 2011 as compared to contract year of 2010-11 and liquidity crunch being faced by Pakistan Steel.
Historically, sales in August and September remained low due to monsoon/rainy season and the same pattern was repeated this year also and the sales will pickup in coming months. The new Board of PSM was constituted on 10th February 2011 and since then five Board meetings have been held, where major policy decisions have been taken and PSM management executes them.-PR
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