Pakistan Steel Mills is the first and only integrated iron and steel making complex of Pakistan with a rated capacity of 1.1 million tons. It started its production in 1984 and achieved full capacity utilization in subsequent years up until 2004 and remained higher than 85 percent capacity in subsequent years. However, lack of funds for plant maintenance and absence of support resulted in a gradual reduction of production. There was a complete shutdown of the plant on 20 June 2015 due to gas disconnection by SSGC for nonpayment of gas bills.
The abrupt shutdown led to chilling of the Blast Furnace as well as hot metal mixer. At present most part of Blast Furnace and metal mixer are filled with untapped solidified charge.
As it stands now Pakistan Steel is terminally sick. However, if proper phase wise steps are taken then this sick unit stands a very good chance of revival.
The following recommendations are an outcome of an extended deliberation with highly experienced professional engineers who have played a pioneering role in the establishment of Pakistan steel with Soviet experts and some who have recently retired and have elaborated the current operational status of the Plant and Machinery.
The strategy being recommended is based on starting activities that can generate cash flow thus lessening the burden of much-needed capital investment. They are arranged in a sequence as under:
- Pakistan Steel consists of several production units related to main production stream and support products and services. Many of these units can be put into operation at their full capacity for using the products and services for state enterprises including defense and railways. Some of such units (which can start immediate operation) are Pakistan Steel Lubrication Limited (PSFCL), Central Maintenance Department (CMD), Section forming unit, galvanizing unit, refractory plant etc.
- Overhauling the Thermal Power Plant (TPP- TBS) and making it operational is amongst the priorities to offset the energy bill and be a source of revenue from the net metering contract with K-Electric.
- The next unit to operationalize are the Rolling Mills (HRM, CRM, and Billet Mill) that can at the start utilize 72,000 tons of slabs available and later switch to imported slabs and blooms. This operation alone can bring billions of rupees in profit to be re-injected into the capital repairs.
- The combined profits from PSFCL, CMD and Rolling Mills operation
(long and flat products) can greatly help in the capital investment required for Revival of Pakistan Steel Mills. - After all of the above, we should focus on 1st category maintenance of Blast Furnaces, Overhaul of Sintering and Coke Oven Plant and repair and maintenance of LD Converter and Oxygen Plant.
- Finally, it was recommended that the Metallurgical Training Center (MTC) and Institute of Material Science and Research (IMS&R) be immediately restarted for the training of manpower. Dawood University of Engineering & Technology can be a partner & collaborator for Pakistan Steel in manpower training. (Recommendations made at DUET, Karachi is a seminar titled as The Revival of Pakistan Steel Mills: Technical Due Diligence) n
