ISLAMABAD, July 11: A big German industrial group has offered to construct $2.5 billion Turkmenistan to Pakistan gas pipeline and set up a spiral pipe mill in Karachi.

According to a statement issued by the ministry of industries, the German group InduSer made this offer to Federal Minister for Industries Liaqat Ali Jatoi who is currently in Germany.

The InduSer chief Rolf Theissen also offered to take part in the expansion of Pakistan Steel or set up a new steel factory to meet additional market demand.

The minister was told that spiral pipe mill would produce primarily spiral-welded water pipes with 20 inch to 100 inch diameter but later spiral welded gas and oil pipes shall be produced in the pipe mill.

The company said it would invest in the near future in the gas pipeline projects in Pakistan and expressed interest in manufacturing of steel products in collaboration with Pakistan Steel.

For this, InduSer offered consulting, delivery, production assistance and a financial concept with buy back arrangements in cooperation with another company Salzgitter International of Germany.

Liaqat Jatoi’s visit to Germany is a follow-up to President Pervez Musharraf’s visit last week to explore the possibility of attracting German investment for joint ventures in Pakistan.

Mr. Rolf also introduced his ventures and companies to the minister and his support to arrange joint ventures amongst various big industrial companies of Germany and Pakistan.

The minister highlighted investment opportunities in Pakistan in various industrial sectors such as food, textile, sugar, cement and heavy machinery production as well as car industries. He particularly mentioned Gwader Port Project, which, he said, was a gateway to central Asian market.

Jatoi said the total production of Pakistan Steel was covering only 27 per cent of the local market demand and there was a lot of potential for the expansion of steel products.

The minister also held a meeting with the Mayor of the city of Ratingen, Germany, Wolfgang Diedrich and discussed direct and joint venture opportunities in Pakistan.

He also invited the Mayor of Ratingen along with Rolf Theissen to visit Pakistan to explore the possibilities of investment and joint venture.