Amreli Steels has decided to temporarily suspend operations at its oldest Karachi-based manufacturing facility SITE Rolling Mill (SRM) due to the unprecedented macroeconomic conditions, according to a stock filing by the company on Tuesday.
SITE Rolling Mill represents 30% of Amreli Steels’ total production capacity.
“In today’s meeting, the Board of Directors discussed the significant economic challenges facing the documented steel sector. These challenges have been aggravated by various economic and political factors, including declining demand for steel rebars, rising utility costs (particularly electricity), high interest rates, an unbalanced tariff structure, heavy tax burdens, smuggling, and increased undocumented activities, all of which contribute to unfair competition and severely disrupt market equilibrium,” read company’s notice to the PSX.
The company said that the situation will be reviewed in six months, and the facility may reopen if conditions improve.
During this period, the company will continue operating its Dhabeji facility, which accounts for 70% of its production capacity, to meet current and future steel demand.
