Amid serious reservations of the local steel industry, the government has planned to revive Tuwairqi Steel Mills Limited (TSML), as a summary in this regard has been submitted to the Economic Coordination Committee (ECC) for approval.
TSML, a joint foreign direct investment (FDI) project by Saudi Arabia’s Al-Tuwairqi Group of Companies and a South Korean firm, was established at Bin Qasim, Karachi, over an area of 220 acres. The Saudi firm had stopped its work on the plant after the Pakistan Muslim League-Nawaz (PML-N) government had refused to provide gas at a discounted rate.
The initial plan for TSML was to make it the largest steel complex in Pakistan, having a production capacity of 1.28 million tonnes per annum. It’s Direct Reduced Iron (DRI) plant was shut down for several months in 2014 due to the dispute over gas supply. The first phase of the DRI plant was completed at a cost of $340 million, while the capital injection in phase-II and III was expected to be in the range of $850 to $900 million