Ministry of Industries & Production

FEDERAL MINISTER FOR INDUSTRIES & PRODUCTION GHULAM MURTAZA KHAN JATOI MEETS WITH CHINA METALLURGICAL GROUP CORPORATION

  

Islamabad: 15 October 2015

PRESS RELEASE

FEDERAL MINISTER FOR INDUSTRIES & PRODUCTION GHULAM MURTAZA KHAN JATOI MEETS WITH CHINA METALLURGICAL GROUP CORPORATION

The Federal Minister for Industries and Production Ghulam Murtaza Khan Jatoi met with a delegation led by the Mr. Wei Xuesheng Mayor of Wu’an City, Hebei Province, China comprising of the China Metallurgical Group Corporation (MCC), Hebei Xinwuan Steel Group Corp and Wenan Iron & Steel Co. Ltd today in Islamabad. The company is one of the top 500 companies and top manufacturers of steel in China. The company generates revenue of $36 billion and its total assets are valued at $30 billion. The company also has significant support of the Wuhan City Government, a major place of operation for the company in China. The company also conducted a Road Show in 2013 during which it gained awareness of Pakistan Steel Mills (PSM) and its investment opportunities.

Talking about their recent visit to PSM facilities in Karachi, MCC commended the Minister on the management of PSM and the warm welcome the delegation received. The delegation said that their company produces 3 million tons of steel with manpower of only 4500 employees and they would like to help PSM achieve the same efficiency through a leaner human resource structure. In this regard, the Minister highlighted that MCC can also set up a coal based power plant at PSM using its dedicated jetty.

The delegation revealed that they had two objectives: to participate in the privatization procedure of PSM and, learn more about the Pakistani market and the investment opportunities present in it. The delegation recently met with the Privatization Commission in this regard as well. Their plan entails revamping PSM to increase production to 2 million tons and expansion by creating a new plant to achieve an additional 3 million tons. This will bring total production to a target of 5 million tons.

The Minister of Industries and Production said that he welcomed all foreign investment opportunities such as MCC and, supported the competitive and participatory nature of the privatization process of PSM. He said that, at the policy level, the Ministry and the Government of Pakistan have always been consistent and the company should have all faith that the Government will support it in every way. The Minister stressed that such international cooperation will help revive PSM and make it an organization which contributes to the steel sector and boost’s Pakistan’s economy.

The Secretary, Ministry of Industries & Production was also present in the meeting.