In a notice to Pakistan Stock Exchange, Agha Steel has notified that it is experiencing delay in completion of its Rebar Expansion project.
Agha Steel is currently expanding its production capacity to 650,000 MT per annum through a state-of-the-art and first in Pakistan Micro Mill Danieli Mi Da Rolling Mill. The Company has also acquired an additional 17 acres of land adjacent to its existing
facility for setting up the new re-rolling mill (Mi Da Rolling Mill).
Agha Steel and Italy’s Danieli Group signed an agreement announcing the construction of Pakistan’s first Endless Steel Technology Mi Da Plant with Direct Rolling Bundling. With this significant milestone, Agha steel production capacity of Rebars will increase to 650,000 MT per annum from 250,000 MT per annum.
AGHA STEEL INDUSTRIES LIMITED carried out a successful IPO in October 2020 to finance its expansion at an estimated cost of PKR 3.6 billion,
Now as per the latest update from the company, Civil works on the expansion project has been 80% completed, while Work on Air separation Unit is 85% complete.
The installation of the of Mi.Da rolling mill was estimated to be complete by December-2020, however due to Foreign Travel restrictions on account of COVID-19 pandemic, same couldn’t be achieved.
Resultantly, the full commissioning of the expansion project was estimated to take place in March-2021, however same couldn’t be achieved.
Although, company hasn’t given any timeline for achievement of full commissioning, However, analyst believes that Expanded capacity of the company will not be commissioned before December-2021.
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