December 06, 2006	Wednesday	Ziqa'ad 14, 1427

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LAHORE, Dec 5: Federal Industries, Production and Special Initiatives Minister Jehangir Khan Tareen has said the foundry sector had tremendous growth potential after technology up-gradation and improvement in quality and productivity.

Inaugurating the first two-day International Foundry Congress and Exhibition here on Tuesday, he said the sector could grow because the national economy was on the high-growth path and the industrial sector had witnessed double-digit growth during the past two years. It would, however, had to concentrate on quality improvement and research as sub-standard goods could not be sold in the international market.

He said the government had set up the Engineering Development Board (EDB) for the uplift and up-gradation of automotive parts and components industry in 1995 under public-private partnership. Mr Imtiaz Eastgar was heading the board as the private sector representative. Reforms had been introduced two years back for taking the automobile sector beyond deletion. The prime minister had recently decided to turn the Engineering Development Board into the Engineering Development Authority, he said.

He said the Technology Up-gradation and Skill Development Authority had also been established under the public-private partnership. The authority headed by private sector representative Almas Hyder had taken a number of steps for improvement in production and design capabilities of the industry, including the establishment of a technology up-gradation centre in Gujranwala.

He said the government would go creating institutions for the development and growth of industry as funds were not a problem any more because the economy was generating sufficient revenue.

Talking to journalists after inaugurating the congress, the minister said the government would soon evolve a five-year policy for the automobile sector in consultation with the stakeholders.

Pakistan Foundry Association President Sikandar Mustafa Khan said the engineering industry could not develop without the foundry sector uplift because it was its backbone. Tremendous growth potential of automotive sector provided an opportunity to the foundry sector to expand itself if it improved the quality of its products and made the prices competitive. The congress had been arranged to discuss ways and means to enable the industry to meet globalisation challenges.

World Foundry Organisation President Dr.P.N.Bhagwati said globalisation had removed the boundaries for industries world over. The components of various products were now being manufactured in different countries. The WFO would try to develop links among its members for networking. The foundries in countries like India, Pakistan and Sri Lanka could form groups on the basis of commonalities and utilise their capabailities jointly for quality production at competitive rates, he suggested.

He said the WFO had decided to start a one-year foundry diploma in India, which could also be attended by engineers from Pakistan, he said, adding that short courses would also be started for training of foremen later on.

Syed Javaid Ashraf said in his welcome address that more than 260 delegates from India, UK, Turkey, Iran, Canada, Germany, Sri Lanka and Pakistan were participating in the congress. More than 50 companies were displaying their products in the exhibition, he added.

Speaking at the technical session of the conference, Imtiaz Rastgar said though foundry sector was the backbone of engineering and component manufacturing sectors, it had yet not assumed due significance in the economy.

He said at the time of independence there were a few foundries in Punjab, and the Pakistan Railways steel workshop at Moghalpura was the only integrated unit equipped with facilities to produce ferrous and non-ferrous castings as well as plain carbon steel billets. The number of small and medium foundries operating in the country had now increased to around 1,500 with production of 300,000 tons of Grey iron, SG iron and carbon steel casting products.

He said the number and production capacity of foundries had increased but no mechanisation had been introduced in the industry except in a few cases. Most of foundries were still relying on hand molding with no proper control over materials, he deplored.

Referring to the export opportunities, he said foreign customers could be approached through competitive prices provided the local industry equipped itself with the latest techniques such as automation and casting simulation etc. The developed countries had started shifting their casting requirements to the developing ones, he said, adding the local foundry industry should make efforts to become a source of finished castings for the developed countries like its Indian counterpart.

Suggesting cluster development among SMEs in foundry sector, he said the industry should invest in pattern making, mechnanised molding lines, hot and cold boxes, core making and the latest inspection and casting equipment. The sub-sector industries needed to upgrade the manufacturing facilities by acquiring modern technologies and equipment for meeting the growing needs of the auto sector.

Highlighting some of the major problems being faced by foundry industry, he said they included non-availability of qualified and trained manpower, technological weakness, lack of international marketing exposure, lack of international product certification and weak research, development and design capabilities.

The industry, he said, could solve the problems and grow by establishing training centres, utilising the latest technology, mechanisation of molding lines and gradual shifting from molasses sand molding to green sand molding for improving the casting quality.

He said the price of pig iron ore manufactured by the Pakistan Steel was much higher than that in the international market. The EDB had provided incentives like reduction in customs duty on foundry raw materials and equipment to 6 per cent to the manufacturing sector for bringing down the input cost.

He said the foundry industry could grow by capturing at least two per cent or 3000,000 tons share in the American market of 13.7 million tons per annum. New markets like Latin America, Japan and Australia should also be explored for the export of foundry products, he suggested.

Punjab Industries Commerce and Investment Minister Muhammad Ajmal Cheema will be the chief guest at the concluding session of the congress being held on Wednesday (today).