Pakistan Steel sell-off not to affect TSM project: Al-Tuwairqi

'The privatisation process of Pakistan Steel would not be affected with the construction of Tuwairqi Steel Mills (TSM)," Chairman Al-Tuwariqi Group, Dr Hilal Al-Tuwairqi told reporters after a press conference held at a local hotel on Wednesday.
A day prior to the ground-breaking ceremony of the project which would be operational with an estimated cost of around 300 million dollars.
"When we showed interest in setting up a steel mill in Karachi, the privatisation of the PS was not on the cards," he said, adding that his group would also participate in the bidding for Pakistan Steel.
"We could be the number one or out from the bidding process, therefore, it is too early to comment," Dr Hilal said while answering a query that the Tuwairqi group could get benefits in the upcoming bidding process.
He said that steel demand was rising consistently in the region, adding that Pakistan would play a major role in rebuilding of Afghanistan, being a neighbouring country.
"After conducting several feasibility studies, we finally decided to initiate our new project in Pakistan," Dr Hilal said and added: "PS is completely dependent on blast furnace technology while we are coming with the world-class, latest technology and equipment, as we realise the growing demand of Pakistan and regional countries."
"Phase-I of the one million tonne per annum direct reduced iron (DRI) plant is scheduled to be completed in 18 to 24 months, costing around $130 million," he said. "In Phase-II, with an additional expenditure of $170 million the plant would start making steel billets, mainly used in making re-bars, wire rods, heavy structure, seamless pipes and other construction material."
However, Dr Hilal said the production capacity of the plant could be expanded from 1 million to 1.5 million tonnes per annum in a short span of time.
He said the group also intends to set up a five-stand caster of 1,000,000 tonnes per annum capacity to cast liquid steel into 130x130 and 170x170 millimeters-sized billets.
"It would produce billets at a lower cost with lesser wastage when compared to the indirect production of billets by rolling the blooms."
In the first phase, the plant would install a 20-25 megawatts combined cycle gas turbine for power generation to meet its electricity requirements, Dr Hilal said, adding TSM would require 180-MW of power from Waopda/NTDC in Phase-II.
Al-Tuwairqi Group of Companies (ATG) is one of the leading business concerns in Saudi Arabia and the largest private sector steel producer in the kingdom. With an annual turnover of 1.5 billion riyals, the group is among the top 5 industrial companies in private sector in Saudi Arabia. The group has seven large industrial units in the kingdom and the UK with five being metallurgical and steel plants.