April 9, 2006	Sunday	Rabi-ul-Awwal 10, 1427

KARACHI, April 8: State Minister for Investment and Special Initiatives Omar Ghuman has said that the demand for steel is growing at 15-20 per cent annually which has resulted in a shortfall of approximately 1.2 million tons per annum.

He was speaking as chief guest at the financial close ceremony of Dost Steels Limited, the first steel re-rolling mill in Pakistan being set up in Bhaipheru, district Kasur. The ceremony was held at a local hotel on Saturday.

The minister said that with the rebuilding of the earthquake affected areas, high quality seismic-friendly steel was required and Dost Steels was a welcome addition.

With its substantial production capacity and durable outputs, Dost Steels will aid greatly in providing quality products that are presently of dire need to the nation, he added.

Dost Steels Limited being a fully automated, state-of-the-art steel complex, has expansion plans to produce 400,000 tons earthquake-resistant steel per annum in the next two years and is expected to significantly reduce the existing gap between steel production and consumption in the country.

Mr Ghuman lauded the growth of the steel industry in Pakistan said that this venture spoke volumes of the investor-friendly policies of the government.

He also noted that Dost Steels’ investment of $50 million for the steel re-rolling mill would increase the country’s current capacity of steel bars production by 300,000 tons per annum.

He added that the government recognised the needs of the steel industry and was actively considering measures to further support and strengthen this vital sector of the economy.

Mr Ghuman informed that Prime Minister Shaukat Aziz had proposed the creation of freight corridors for increased logistical support and special initiatives were also being explored by the government in light of the needs of the industry.

Dost Steel Chief Executive Officer Jamal Iftikhar emphasised the vision of the company.

He stated that the company’s long-term vision was to maximise shareholder value and returns, be the supplier of choice in the high stream deformed debars markets, and become the lowest cost producer on the back of volume and technology.

Jamal also noted that the company’s most essential value was to be to a customer centric business, where quality service was of utmost important.

He also noted that the plant commissioning would be held in December and the first supply of steel would be distributed into the market in February 2007.

He emphasised that steel growth and in particularly availability of seismic friendly steel bars was critical for economic expansion in the country.—APP