Mughal Iron and Steel Industries Limited has announced to invest Rs1 billion to improve and expand steel re-rolling process, billets and in-house power generation capacity, subject to board and banks’ approvals, reported a national daily.
Company secretary Muhammad Fahad Hafeez informed that the board of directors has resolved to conduct BMR (Balancing, Modernization and Replacement) of its existing bar re-rolling mill.
In order to improve the efficiency of the re-rolling process, the company will invest in new re-rolling stands, finishing lines and other improvements to the existing mill in order to enable it to adhere to high and faster re-rolling process with state of art PLC control system.
The board has also resolved to increase the current power generation capacity of its existing 9.3-megawatt gas captive power plant by adding six additional engines of 3.1 megawatts each. As a result of the enhanced power generation capacity, the total gross installed power generation capacity of the captive power plant will reach 27.9 megawatts. This is expected to play a fundamental role in meeting increased demand of billet to support the existing re-rolling activities. The total cost of the projects is expected to be Rs1b.
The initiation and completion of these projects will be subject to the final decision of board of directors relating to source of finance to be used, which in case of debt financing will further depend upon approval of financing arrangements from bank(s) and/or financial institutions and in case of equity financing upon decision of the board of directors.