International Industries Ltd

completed

_x000C_The downstream steel project comprises the installation and operation of an integrated 280,000 tons per annum (tpa) cold rolled mill and a 150,000 tpa galvanizing plant in Karachi, Pakistan. The project also includes a captive 18 MW gas fired power plant which is operational and providing power to the national grid. The project would source steel, mainly hot rolled coil, in the competitive world steel market and process it further to make cold rolled coils and galvanized sheets primarily for roofing material. The project cost is estimated at $162 million, including $34 million working capital. - Purpose of Project: The project would establish the first privately owned galvanizing sheet plant in Pakistan that would domestically manufacture and substitute 75% of the galvanized sheet that is currently imported. Pakistan imports 200,000 tpa annually or 80% of its requirements. The imports of galvanized sheet into Pakistan are primarily made by individual traders in small quantities which is inefficient and leads to high costs to domestic consumers. The project’s large and modern manufacturing equipment will lead to lower costs to consumers, allow better matching of the market needs through customized products and achieve significant proximity advantage against imports through shorter lead times.