Integrated Steel Mill of 4 Million TPY Tonne Year

1
Integrated Steel Mill of 4 Million TPY (Tonne /
Year)

• Introduction
• Need Assessment
• Proposed Project
• Technical Evaluation
• Financial Evaluation

2
Integrated Steel MillIntroduction

• World Steel Production has increased four folds
  in the last fifty years - 1 billion ton mark in
  recent years
• Industry has experienced a yearly growth rate of
  5.7 - highest ever recorded
• 34 of steel production worldwide is through the
  Electric Are Furnace (EAF) route
• increasing scrap prices have lead to the
  development of technologies that consume sponge
  iron / Direct Reduced Iron (DRI)

3
Integrated Steel MillNeed Assessment

• Till 2003, Pakistans per capita consumption of
  steel remained 14 kg very low
• Economic upsurge has led to higher consumption
  and demand
• Installed steel manufacturing capacity is
  estimated to be around 4 million tons with
  capacity utilization averaging around 80
• Major Players
• Capacity addition in steel production in Pakistan
  could target
• Rolled Products (Long)
• Flat Products (Plates, Thin Strip etc.)
• Pig Iron
• Adding new capacity would significantly hedge our
  position viz a viz imports
• New capacity addition would save precious foreign
  exchange and generate employment.

4
Integrated Steel MillProposed Project

• The objective of the Project is to set up
  integrated Steel Mill of 4 million TPY based on
  the DRI process

5
Integrated Steel MillTechnical Evaluation

• Based on Direct Reduction (DR) process with slab
  casting and rolling process to produce ultra thin
  hot rolled strips
• The key technologies / areas
• DR technologies
• Steel making through Electric Are Furnace (EAF).
• Rolling (HR and CR).
• Continuous Casting (CC) and rolling process to
  produce ultra thin hot strips.
• Vacuum Oxygen Degassing (VOD) VOD, although
  available at PSM, will also be needed here in
  order to obtain refined steel.
• 4 million tpy plant
• Karachi appears to be the most suitable location
• It maybe located near Port Qasim where additional
  land can be acquired from the Govt. of Sindh.

6
Integrated Steel MillFinancial Evaluation

• Investment - US 400 million
• IRR 25 - 30