KARACHI: The Board of Directors of Amreli Steel Ltd (ASL) has approved third phase of the company’s expansion plan for setting up a state-of-the-art rolling mill using Pioneering Technology at Dhabeji to further expand its rebar manufacturing facilities.

In a stock filing on Friday at the Pakistan Stock Exchange (PSX), the company said the new investment proposal, subject to approval of technical feasibility and financial close, would raise company’s existing rolling capacity to 1.105 million tonnes per annum from 605,000 tonnes. It is expected to complete in three years time from financial close.

The estimated cost of expansion is Rs6.5 billion which would be financed by bank borrowings and internal cash resources.

Internationally reputed consultancy firms have been invited to submit their bids for final selection to commence the technical feasibility of the proposed project. By installation of this facility, the company will have the largest capacity in the country for producing high quality rebars.

The board also held detailed deliberations regarding revamping of its existing Site rolling mill to increase production capacity from 180,000 tonnes to 275,000 tonnes per annum. However, ASL decided to rescind the revamping plan of the Site rolling mill due to expansion in Dhabeji.

Published in Dawn, November 10th, 2018