Agha Steel says it intends to export iron ore from KPK mines
- Has also entered into contract for acquisition of 50 cubic meter blast furnace for backward integration with its existing arc furnace
Agha Steel Industries Limited (AGHA), a manufacturer of steel bars, wire rods, and billet, said that it intends to export iron ores from mines in Khyber Pakhtunkhwa to international destinations.
The company shared its intention in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“The company has partnered with iron ore mine owners in KPK for exclusive raw material supply for its blast furnace,” read the notice. “The company intends to export iron ore from these mines to the international market, based on the commercial viability of the international trade,” it added.
In addition, Agha Steel also announced that it has entered into a contract for the acquisition of a 50 cubic meters (m3) blast furnace for backward integration with its existing arc furnace.
Agha has an annual melting capacity of 450,000 metric tons and an annual rolling capacity of 250,000 metric tons. The company represents one of the largest private sector investments in the steel industry of Pakistan.
As per the company’s latest financial results, it posted net sales revenue of Rs5,689 million during the quarter ended March 2023 compared to Rs6,145 million in the corresponding period of 2022.
Gross profit stood at Rs1,373 million as compared to Rs1,428 million in the corresponding period, primarily attributable to overall inflation in the industry.
The construction sector has been under stress in the past few months with rising power tariffs and high interest rate hindering prospects of growth.
A delegation of the Pakistan Association of Large Steel Producers (PALSP) recently met with caretaker Federal Minister for Energy Muhammad Ali and his team during his visit to Karachi.
The delegation included leading members of Karachi-based steel manufacturers, including Hussain Agha from Agha Steel, and briefed the Minister about the challenges of the steel sector with respect to the energy/electricity areas.
Members of the delegation expressed their concerns over the high cost of inputs, especially electricity, which is placing immense pressure on industries and requires urgent attention for a sustainable resolution.
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