Mughal Steel gets amendments to expansion plan approved

LAHORE: A bourse notification filed Monday by Mughal Iron and Steel Industries Limited (MISIL) revealed amendments to expansion plan have been approved by the company’s board of directors.

According to the notification, grid load has been increased from 19.99 MW to 59.99 MW which has translated into enhanced power load availability.

To align the melting capacity of upcoming re-rolling demand, the MISIL BOD has given go-ahead for increase in melting capacity by 396,000 MT at a capex of Rs500 million approximately.

This would “enable “Hot / Direct rolling” for BMR of Bar mill project and provide additional melting capacity for existing girder re-rolling mill. The increased melting capacity will reduce reliance on local outsourced billet, ensure competiveness, sustainability of operations and eventually result in improved margins,” read the notification.

Also, the company’s board gave go-ahead for installation of CCM and shearing machine in respect of “Hot / Direct rolling” project at a capex of Rs470 million.

Approval for installation of water treatment plant, roughing area and induction heater for BMR of bar mill project at a capex of Rs900 million has been also given by MISIL’s board of directors.

Also, go-ahead has also been provided for capex of Rs400 million linked to related civil works needed for the projects under both phases.

Long-term debt financing for capital expenditure for Phase-II of the project has been approved and is expected to conclude by 4^th quarter of 2018.

Mughal Iron & Steel Industries Limited manufactures and trades in mild steel products in Pakistan. The company offers ferro manganese, ferro chrome, and silicon manganese products; mild carbon, spring steel, stainless steel, and alloys steel billets; and long rolled product.

MISIL shares were trading at Rs74.25, up Rs2.15 and KSE-100 index at 42,892.38 points, down 374.82 points from Friday’s close.