PC INVITES EOI FOR PRIVATISATION OF HEAVY MECHANICAL COMPLEX (HMC) TAXILA

Karachi, March 16, 2006

The Privatisation Commission ('PC') has invited Expression of Interest (EOI) from prospective investors (Mechanical Engineering and or Industrial Companies and groups, consortium of investors who can demonstrate their ability to own, efficiently manage and operate the Company) for acquisition of minimum 90% shares of Heavy Mechanical Complex ('HMC') together with management control on an `as is, where is' basis.

HMC is country's pioneer heavy engineering concern having capability for designing, engineering and manufacturing of capital machinery, industrial plant equipment and other engineering goods. It is located in the prime industrial hub at Taxila, 35km north of Islamabad. The Mechanical Works commenced commercial operations during 1971 whereas Foundry & Forge Works started production during 1978. Both the works were, however, merged during 1989. The facilities include Fabrication, Machining, Foundries, Forging,  Heat Treatment, Galvanizing & Auxiliary shops. A well-established Design Centre with CAD/CAE facilities is also available. The products of HMC conform to international quality standards. HMC has been authorized to use four (4) ASME stamp codes for Boilers, Pressure Vessels, Pipings etc. The company is ISO-9001 certified.

The company's product mix covers sugar and cement plants, chemical/ petroleum, oil/gas processing plants, thermal power plant equipment, mini and micro hydel power plant equipment, road construction machinery, railway equipment, overhead electric traveling cranes, boilers, pressure vessels, heat exchangers, heavy to medium iron & steel castings, steel billets, heavy to medium free as well as closed die forgings.

As a result of sustained improvement in Pakistan's macro economic environment, the demand for capital machinery and heavy equipment in the country is growing. The operational flexibility of plant machinery installed at HMC, and its state-of-the-art design and engineering capabilities thus allow diversification of activities of the company to cover industry, power, water, energy, agriculture and infrastructure sectors, meeting specific  domestic and export requirements.

Investors interested in joining the process have been asked to submit an Expression of Interest ('EOI') (in duplicate) together with a non-refundable processing fee of US$ 5,000/- or PKR 300,000/. by April 30, 2006. Preliminary information on HMC is available on the website: www.privatisation.gov.pk Information Memorandum, Bid Documents and Time Frame for the Pre-Bid conference and bidding date will be provided to Pre-qualified parties only.