The Pakistan Association of Automotive Parts & Accessories Manufacturers (Paapam) will prepare a comprehensive report on demand for raw materials, including steel billets of SAE 1045/1044 grades, foundry grade pig iron and hard coke for manufacturing of auto-parts.
The report will also suggest a mechanism to ensure uninterrupted supply of the raw material, decides a meeting held in the Engineering Development Board (EDB) on Tuesday with EDB General Manager S.M. Adil Shah, said a statement.
The meeting was convened at the request of Paapam to resolve the issue of short supplies and develop a system, which would ensure the supplies of raw materials to consumer industries.
A four-member Paapam delegation, headed by its chairman, a two-member team of Pakistan Steel, representative of Ministry of Industries & Production and concerned officials of EDB attended the meeting.
It was decided that Paapam will submit a draft report containing proposals for streamlining the supply of raw materials required by auto-parts manufacturers within 15 days to EDB, which will examine it before forwarding the same to the Pakistan Steel for favourable consideration and necessary action.
During the course of discussions, Paapam chairman said the raw materials required by auto-parts manufacturers are available in the open market at premium prices which adversely affect the cost of production and resulting in uncompetitive product prices in the international markets.
He also said that under the prevailing situation it would also not be possible to meet the production targets of cars, tractors and motorcycles. He also suggested concluding a MoU with the Pakistan Steel ensuring regular supplies of the said materials.
The PS representatives, while appreciating the suggestions of the Paapam chief, expressed that Paapam should devise a system so that the raw materials required by them can be streamlined.
The Paapam chief expressed his willingness to make the steel products required by auto-parts manufacturers available to vendors who are registered with Paapam. He also said that there would be an open tender for supply of around 40,000 tonnes coke and Paapam would be welcomed to participate in it.
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