Economic challenges force Amreli Steels to keep Karachi facility shut for six more months

Citing economic hardships, the Board of Directors (BoD) of Amreli Steels Limited (ASTL) has decided to extend the suspension of its operations at the company’s SITE Rolling Mill (SRM) in Karachi.

The site represents 30% of the company’s production capacity, the listed company stated in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“We wish to inform you that the Board of Directors, in its meeting held today i.e. 29 October 2025, reviewed the prevailing circumstances that had necessitated the suspension of operations at the company’s SITE Rolling Mill (SRM) and observed that the underlying economic challenges remain unchanged.

“In view of these circumstances, the Board of Directors has decided to extend the suspension of operations at SRM for an additional six months,” read the notice.

The steelmaker shared that any decision regarding the resumption of operations will depend on a substantial improvement in the broader economic environment.

“In the meantime, the company’s Dhabeji facility - which constitutes the majority of its production capacity - remains operational, enabling the company to continue meeting present and anticipated market demand.

It is pertinent to mention that SRM represents 30% of the company’s production capacity.

The development comes as Amreli Steels reported a loss of Rs790.3 million amid a drop in sales and high cost of production during the quarter ended September 30, 2025.

As per the company’s latest financial results provided to the PSX, the steel maker saw its gross profit dwindled down to only Rs18 million during the quarter, down 92% as compared to Rs228.7 million in the same quarter previous year.

Amreli Steels Limited was established as a private limited company in 1984. It was converted into a public unquoted company in 2009.

The company manufactures and sells steel bars and billets at its production plants located in Shershah, Karachi and District Thatta, Sindh.