Pakistan’s government has invited expressions of interest from foreign and domestic investors to acquire Pakistan Steel Mills (PSM). PSM has incorporated a wholly-owned private subsidiary, “Steel Corp”, to revive the closed steel unit.

The government’s Privatisation Commission (PC), coupled with PSM, expects the investor to acquire 51-74% of the issued capital of Steel Corp together with management control, Kallanish notes. “The Expressions of Interest (EOIs) would be invited, for pre-qualification of investors,” says the cabinet committee on privatisation.

“We have come a long way, with a focused objective to revive the largest industrial unit of Pakistan, which could run in its best capacity and contribute to the national economy,” says privatisation minister Muhammad Mian Soomro.

The PC has asked potential investors to submit EOIs in duplicate with a non-refundable processing fee of $1,000, along with the key business details of the investor before 30 September. Upon the receipt of fees and details, the commission will issue a “Request for Statement of Qualification” to the interested parties. The due date for the “Statement of Qualification” will be 15 October.

PSM is the nation’s largest integrated steel mill, wholly-owned by the Government of Pakistan. The existing capacity of PSM is 1.1 million tonnes/year, with a built-in potential for expansion up to 3m t/y. Production units of the company include a coke oven plant, by-product plant, sintering plant, iron making plant, steelmaking plant, billet mill, hot strip and cold rolling mill, galvanizing plant, oxygen and thermal power plant. Major products include pig iron, billet, hot and cold rolled coil, and galvanized coil.