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The Privatisation Commission ("PC") has invited qualified strategic
Investors interested to submit an Expression of Interest ("EOI") for acquiring
51-74% equity stake in Pakistan Steel Mills Corporation (Pvt.) Ltd. ("PSMC" or
the "Company"), together with management control, on an 'as is, where is'
basis latest by October 8, 2005. A consortium led by Citigroup Global Markets
Limited is advising the PC on the sale
The interested parties have been asked to provide the information along with
EOI including Name of company / group and their background information,
Audited financial statements for the preceding three years and Details of
ownership / group structure.
Upon receiving the EOIs and non-refundable processing fee of US$ 5,000/- or
Pak Rupees 300,000/-, Request for Statement of Qualification ("RSOQ") will be
dispatched to the interested investors immediately.
PSMC is the country's largest and only integrated steel manufacturing plant,
with an annual designed production capacity of 1.1 million tonnes. It was
incorporated as a private limited company in 1968 and commenced full-scale
commercial operations in 1984. PSMC complex includes coke oven batteries, a
sintering plant, blast furnaces, steel converters, bloom and slab casters,
billet mill, hot and cold rolling mills, galvanizing unit and 165MW of own
power generation units, supported by various other ancillary units. It is
located 30km south east of the coastal city of Karachi, in close proximity to
Port Bin Qasim, with access to a dedicated jetty, which facilitates import of
raw materials. PSMC manufactures a wide mix of products, which includes both
flat and long products. PSMC effectively enjoys a captive domestic market due
to the prevalent demand-supply imbalance in the country's steel industry,
where demand has historically exceeded local supply.
At the back of sustained improvements in Pakistan's macroeconomic environment,
the demand for steel in the country is expected to grow further. PSMC is
uniquely positioned to take advantage of the expected demand growth as
adequate infrastructure is already in place to cater to capacity expansion.
PSMC also strives to maintain high quality and environmental standards and in
this regard has received ISO 9001, ISO 1400-1 and SA 8000 certifications,
along with the Environmental Excellence Award 2005.Preliminary information on
PSMC is available on the following websites:
www.paksteel.com.pk and
www.privatisation.gov.pk