353 replies to this topic

[ABBASIA]

I have worked in CTI from March 1998 to February 2004, this is mere assembly and CTI will earn the margins from the assembly. I dont think there is any big Transfer of Technology in this deal.

[ABBASIA]

The Engineering Development Board (EDB) is eyeing to achieve the engineering goods export target of $1 billion during 2006-07, against $713 million of 2004-05, it is learnt.

Sources in EDB told Business Recorder on Monday that the Board was updating the list of exporters, taking into account their problems and difficulties, for enhancing exports of engineering goods.

Despite the biggest slice of world trade (70 percent of engineering goods), sadly and surprisingly, the country's export of these products is limited to a few products that include electric fans, transport equipment, some electrical machinery, machinery for particular industries, auto parts and other machinery, sources said.

Moreover, the Board was also focusing on acquisition of modern state-of-the-art technology for increasing exports, they added.

"There are large areas of the country that are engineering-oriented and produce natural engineers--even illiterate mechanics--with world class potential", they said.

Places like Gujranwala, Sialkot, Gujrat, Wazirabad, Lahore and even parts of Karachi are producing items with their innate engineering skills, but they have no exposure to market their products globally, sources said.

The exports of engineering goods in November amounted to only $9677, against $10,290 in October, while the amount was $9830 in November 2004, whereas exports of engineering goods stood at $394 million during 2003-04, and $332 million in 2002-03.

[ABBASIA]

Al-Tuwairqi Steel Mills declared EPZ
RECORDER REPORT
ISLAMABAD (January 17 2006): The Central Board of Revenue (CBR) has declared Al-Tuwairqi Steel Mills, Karachi as Export Processing Zone (EPZ), and the mills has been exempted from the mandatory condition of 80 percent exports of the total production. The CBR has amended Customs Rules 2001 through SRO (I)/2005 issued on Monday.

It is mandatory for units in Karachi Export Processing Zone (KEPZ) to export 80 percent of production, with only 20 percent to be sold in the tariff area. However, the rule has been relaxed for the said steel mills to encourage investment. Thus, the unit has been exempted from the condition of 80 percent export of total production.

FOLLOWING IS THE TEXT OF THE NOTIFICATION ISSUED ON MONDAY: In exercise of the powers conferred by section 219 of the Customs Act, 1969 (IV of 1969), the Central Board of Revenue is pleased to direct that the following further amendment shall be made in the Customs Rules 2001, namely:-

In the aforesaid rules, in rule 228, in sub-rule (5), after the word "Zones" the words and comma "excluding M/s Al-Tuwairqi Steel Mills, Karachi", shall be inserted.

[ABBASIA]

Hand, machine tools fair opens

Staff Report

KARACHI: Investors of Switzerland and Malaysia will invest around $10 million in engineering and construction sector of the country, Basit Alvi, former chief Pakistan Hardware Merchants Association (PHMA) said on Saturday.

During the inaugural session of the three-day engineering products and engineering hand and machine tools exhibition at Expo Center, Mr Alvi said these companies have shown interest to invest in construction industry and engineering sector.

He said this collaboration in launching joint ventures with Pakistani companies would boost manufacturing capacity and improve standards of products besides provide employment opportunities to skilled and semi skilled workers. He said after completion of these engineering projects our exports of engineering products to Asian and other countries would become manifold.

[ABBASIA]

US firm donates software to Karachi TDM Centre

LAHORE: The Tools, Dies and Moulds Centre in Karachi will be equipped with 100 seats of UGS’ NX Software for Computer-Aided-Design (CAD) and Computer-Aided Manufacturing (CAM) Systems for teaching, training and developing human resources for the rapidly growing engineering industry in Pakistan.

According to a press release issued here on Saturday, the centre being set up by the Technology Upgradation & Skills Development Company (TUSDEC) provides support to the country’s dies and moulds sector in carrying out rapid prototyping through latest technologies such as Steriolithograpy, Selective LASER Sintering and Rapid Tooling along with support for CAD/CAM and CNC machining.

The TDM Center would deploy Unigraphics software as part of a complete tutorial system for product development, design and manufacturing. Induction of UGS software would ensure smooth transition of data between applications such as 3D Scanning Devices, Rapid Prototype Machines and CNC Machine tools.

Praising US firm Unigraphics for donating software to the TDM centre, TUSDEC Chairman Almas Hyder said the establishment of TDM equipped with latest machinery and software would have a positive effect on the engineering sector as well as the national economy. He said Pakistan now had no choice but to jump the curve to come in line with the hi-tech digital technology prevailing globally in the engineering industry.

The Chairman of the TDM Centre, Munir K Bana, said the TDM Centre would disseminate “hands-on” training to employees in the engineering industry, besides launching fully-fledged technical courses for fresh engineering graduates.

“To begin with,” he said, “The TDM Centre Karachi will soon be beginning classes in the fields of Computer Aided Designing (CAD), Computer Aided Manufacturing (CAM) and Computer Aided Engineering (CAE).” He said Unigraphics software will go a long way in helping our local engineering industry to catch up with the worldwide industry leaders.

The PIDC has provided two acres of land in Korangi Industrial Area, Karachi, for the project. The expected beneficiaries of the TDM Centre are telecom, automobiles, medical devices, home appliances, aviation and dies & moulds manufacturing sectors.

[ABBASIA]

Efforts on to enhance engineering share

By our correspondent

LAHORE: Pakistan is aiming at opportunities to enhance share of engineering sector in overall domestic manufacturing from 18 per cent to 30 per cent till 2012 in a bid to capitalise on major chunk of global trade of engineering goods.

The share of engineering sector in global trade is about 63 per cent while in sheer contrast the share of textile stands at only about six per cent. These views were expressed by EDB Chief Executive Officer, Imtiaz Rastgar who was speaking at the ‘Discussion’ programme of the Lahore Economic Journalists Association (LEJA) on Monday at the office of Punjab Industrial Estate.

He threw light on the present scenario of engineering sector in the country and talked about its potential and challenges being faced by local manufacturers. "EDB is endeavouring to interlink local manufacturers with international companies to increase the share of engineering sector in overall manufacturing," he said, adding, $1 billion worth of export of engineering goods is being aimed by year 2007.

He said Pakistan succeeded in increasing exports of engineering goods to nearly $400 million but there is dire need to augment exports manifold. He was of the view that strengthening of engineering sector had also assumed paramount importance in order to make it the driving force of economic growth.

"Our companies are largely focusing local market and are reluctant to capture world markets due to variety of reasons," he observed. He pinpointed various constraints of engineering sector, saying that absence of world class manufacturing education, lack of modern machinery and technology, very low value addition and high dependence on tariff protection.

He said in the absence of efficient marketing team, local manufacturers are facing severe problems in competing in the world market. "Pakistan needs techno-preneures who should be capable of latest skills as well as business techniques," he viewed.

He was of the view that local manufacturing companies should have exposure to international markets, acquire latest technology, seek joint ventures and invest in value addition. "Instead of manufacturing low quality goods, we must focus on value addition in order to jumpstart chain production of quality goods.

Nabeel Hashmi, head of Business Development Group of EDB said that a comprehensive programme of various exhibitions had been finalised to give international exposure to the Pakistani companies. "Following government policies as many as 70 companies would attend Hannover fair," he said, adding, unlike previous practice, we are aiming to attend various exhibitions in a big way.

He also informed that the intending exhibitors of Hannover fair were also being imparted training from foreign experts. He said that ‘Engineering Pakistan 2006’ was also being organised in November this year with the same objective of introducing local manufacturers of high quality goods.

http://jang.com.pk/t...business/b3.htm

[ABBASIA]

EDB workshop on steel-making on 11th

ISLAMABAD: The Engineering Development Board (EDB) will organize a workshop for local industrialists so that they can explore the possibility of producing steel through the Romelt process, a latest technology developed by a Russian company.

The EDB, in a statement on Monday, said it had been learnt that a Russian company, M/s Tyashpromexport, had developed a new technology, “Romelt,” which uses lean iron ore (with iron content not less than 30%) for iron production. The workshop is being organized in TUSDEC Auditorium, Lahore, on Feb 11.

Working under the ministry of industries, production & special initiatives, the EDB is entrusted with responsibilities for the development of the engineering sector of Pakistan and connecting it to the global markets. The EDB believes that for a globally competitive engineering industry a sound and competitive steel sector is the pre-requisite. The main focus of the EDB is to put up steel mills in the country that are mainly based on indigenous iron ore.

[ABBASIA]

The approach Pakistani Engineering Industry needs to follow step by step too;

China Seeking Auto Industry, Piece by Piece

By KEITH BRADSHER
New York Times

CHONGQING, China, Feb. 16 China is pursuing a novel way to catapult its automaking into a global force: buy one of the world's most sophisticated engine plants, take it apart, piece by piece, transport it halfway around the globe and put it back together again at home.

In the latest sign of this country's manufacturing ambitions, a major Chinese company, hand-in-hand with the Communist Party, is bidding to buy from DaimlerChrysler and BMW a car engine plant in Brazil.

Because the plant is so sophisticated, it is far more feasible for the Chinese carmaker, the Lifan Group, to go through such an effort to move it 8,300 miles, rather than to develop its own technology in this industrial hub in western China, the company's president said Thursday.

If the purchase succeeds and it is early in the process China could leapfrog competitors like South Korea to catch up with Japan, Germany and the United States in selling some of the most fuel-efficient yet comfortable cars on the market, like the Honda Civic or the Toyota Corolla.

The failure of China to develop its own version of sophisticated, reliable engines has been the biggest technical obstacle facing Chinese automakers as they modernize and prepare to export to the United States and Europe, Western auto executives and analysts said.

Buying that technology from overseas would not only remove this obstacle but would also plant China's auto industry solidly in a position to produce roomy cars that can also get more than 30 miles to the gallon.

The engine plant is one of the most famous and unusual in the auto industry. Built in southern Brazil in the late 1990's at a cost of $500 million by a 50-50 joint venture of Chrysler and BMW, the Campo Largo factory combines the latest American and German technology to produce the 1.6-liter, 16-valve Tritec engine.

Lifan says it is the sole bidder for the factory and wants to bring it here to start producing engines in 2008. Though China's Communist Party is actively behind the effort, the bold moves are being driven by one of China's remarkable entrepreneurs: Yin Mingshan has become one of China's most successful and most politically connected corporate executives, with a hardscrabble upbringing that included spending 22 years of his earlier life in Communist labor camps and prison as punishment for his political dissent.

Now the enormously wealthy and prominent president and principal owner of Lifan, Mr. Yin has his sights on exporting to Europe in 2008 and the American market in 2009.

Trevor Hale, a DaimlerChrysler spokesman, and Marc Hassinger, a Bayerische Motoren Werke spokesman, each said separately that their companies were assessing their options for when their joint venture legal agreement expires at the end of next year, but that it was premature to provide details.

The Tritec engine is one of the most technologically sophisticated and fuel-efficient car engines in the world, said Yale Zhang, an analyst in the Shanghai office of CSM Worldwide, a big auto consulting company based in the Detroit suburbs. Mr. Yin said he wanted to rebuild the factory on vacant land next door to his car assembly plant here. His goal is to understand the technology thoroughly so that he can supply engines not only for Lifan but also for other Chinese automakers.

In an interview on Thursday in a glass-walled conference room overlooking his recently completed car assembly plant, Mr. Yin, 67, said that while Lifan would pay for the factory, the Chinese negotiating team is being led not by a Lifan official but by a senior Chinese Communist party official, Huang Zhendong.

Mr. Huang, 65, is a member of the party's powerful Central Committee and led the party's Chongqing branch until December, when he became a senior member of the influential legal committee of the National People's Congress in Beijing.

Mr. Yin's deputy, Yang Jong, Lifan's chief executive, has accompanied Mr. Huang on a visit to Brazil. "Everyone knows you need government support the government may provide land," Mr. Yin said.

Any attempt to buy a comparable factory in the United States might be blocked. But Mr. Yin said that Brazil did not have comparable restrictions on the export of high technology.

Lifan, already one of the world's largest motorcycle manufacturers with sales in 112 countries, is about to start exporting its remarkably well-built, $9,700 midsize sedans to developing countries in Asia, the Mideast and the Caribbean. But several more years of work is needed before the company is ready to compete in industrialized countries, Mr. Yin said.

"Chairman Mao taught us: if you can win then fight the war, if you cannot win, then run away," he said. "I want to train my army in these smaller markets, and when we are ready, we will move on to bigger markets."

Accustomed to producing lightweight, fuel-sipping cars for cost-conscious Chinese families, Chinese automakers want to use that expertise as a competitive advantage around the world while oil prices stay high. Geely, a separate Chinese carmaker that surprised American and European manufacturers by announcing plans at Detroit's auto show last month to enter the American market in 2007, was emphasizing gas mileage even before oil prices surged in the last two years.

When crude oil prices were much lower than they are today, Geely switched from an inexpensive electronic engine control and fuel injections system made by Denso of Japan to a more expensive but more fuel-efficient model made by Bosch of Germany, said Lawrence Ang, an executive director of Geely.

Multinational automakers have struggled in China to keep up with the public's growing appetite for fuel-efficient models. Chinese carmakers like Chery and Geely captured a quarter of the Chinese market last year, up from less than 10 percent just two years earlier, said Michael Dunne, the president of Automotive Resources Asia, a consulting firm.

"Why the spurt? Small cars powered by gas-sipping engines that start at $4,000," Mr. Dunne said.

Raymond Bierzynski, the president of the Pan Asia Technical Automotive Center of General Motors in Shanghai, said that gasoline costs were more important to consumers in China than elsewhere because these costs represent a higher share of the low household incomes in China. G.M. sells its Buick Excelle compact sedan with special, low-rolling-resistance tires in China, which it does not do in any other market and which increases gas mileage by up to 2 percent, he said.

Chrysler and BMW began construction of the Campo Largo factory in April 1998, a month before Daimler-Benz began a takeover of Chrysler that it completed in November of that year. Heralded in the automotive press at the time as arguably the most advanced engine factory ever built, the factory had already become a corporate orphan by the time production began in September, 1999.

The Brazilian auto market had entered a slump by then and Daimler already had ample engine manufacturing capacity of its own and was uncomfortable collaborating with its longtime German rival, BMW.

BMW installs its half of the engines from the factory in its award-winning Mini Coopers. But it has already announced that future engines for these cars will come from a factory in France that is owned and operated by PSA Peugeot Citroën.

Chrysler used to put the Brazilian-made engines in its Neon compact cars and the PT Cruiser. But it is now selling its half of the engines to Lifan and to Chery Automotive and a Chinese joint venture by Mazda.

Mr. Yin and spokesmen from DaimlerChrysler and BMW declined to comment on the price under negotiation for the factory.

Lifan made its debut into the car market just last month with the introduction of the Lifan 520 sedan, assembled in the company's sprawling new assembly plant here, where the conveyor belt is bright red and the giant clamps holding unfinished cars are bright yellow the colors of China's flag. Lifan models itself on Honda, another motorcycle manufacturer that entered the car market, and shares Honda's emphasis on efficient, energy-saving designs.

Lifan has also copied Honda's focus on quality. Huge characters of Mr. Yin's sayings adorn a Lifan motorcycle engine factory inside and out; an illuminated board over the assembly line reads: "Whoever wrecks Lifan's brand, Lifan will wreck that person's rice bowl."

A test drive here of the Lifan 520 sedan showed it to have an impressively sturdy body with no rattles or wiggles even when traveling over very rough pavement although this is no guarantee of long-term reliability. There is ample headroom in the front seats and even the rear seats for a 6-foot-4 occupant.

The $9,700 price tag includes leather seats, dual air bags, a huge trunk and a DVD system with a video screen facing the front passenger a combination that could cost twice as much in a comparably equipped midsize sedan in the United States.

Wages of less than $100 a month have helped control the cost. The assembly plant is better organized than many Chinese factories, although it still maintains large inventories of parts and materials awaiting assembly, incurring interest charges to finance these supplies.

Mr. Yin has no doubts that China can also compete with the United States.

Lifan-520, the new compact sedan is powered by a 4-cylinder 1.6-liter petrol engine supplied by Tritec of Brazil. It is the same engine as found in the Mini Cooper and the Chery Fengyun.

[ABBASIA]

US firm donates free software to Karachi TDM centre

The Tools, Dies and Moulds Center in Karachi will be equipped with 100 seats of UGS’ NX Software for Computer-Aided-Design (CAD) and Computer Aided Manufacturing (CAM) Systems for teaching, training and developing human resources for the rapidly growing engineering industry in Pakistan.
According to a press release issued here Saturday, the center being set up by Technology Upgradation & Skills Development Company (TUSDEC) provide support to country’s dies and moulds sector in carrying out rapid prototyping through latest technologies like Stereolithograpy, Selective LASER Sintering and Rapid Tooling along with support for CAD/CAM and CNC machining.

The TDM Center would deploy Unigraphics software as part of a complete tutorial system for product development, design and manufacturing.

Induction of UGS software would ensure smooth transition of data between applications such as 3D Scanning Devices, Rapid Prototype Machines and CNC Machine tools.

Appreciating US firm Unigraphics for donating software to TDM centre, Chairman TUSDEC, Almas Hyder said that the establishment of TDM equipped with latest machinery and software would have a salutary effect on the engineering sector as well as the national economy.

He said that Pakistan now has no choice but to jump the curve to come in line with the hi-tech digital technology prevailing globally in the engineering industry.

The Chairman of TDM Centre, Munir K. Bana, said that the TDM Centre would disseminate "hands on" training to the employees in the engineering industry, besides launching full-fledged technical courses for fresh engineering graduates. "To begin with," he said, "TDM Centre Karachi would shortly be commencing classes in the fields of Computer Aided Designing (CAD), Computer Aided Manufacturing (CAM) and Computer Aided Engineering (CAE)."

Bana said that Unigraphics software would go a long way in helping our local engineering industry to catch up with the worldwide industry leaders.

Pakistan Industrial Development Corporation (PIDC) has already provided a piece of land over an area of 2 acres in Korangi Industrial Area, Karachi, for this project. The expected beneficiaries of TDM Centre are telecom, automobiles, medical devices, home appliances, aviation and dies & moulds manufacturing sectors.

Simcon International (Pvt.) Ltd, the Unigraphics (UGS) Channel Partner in Pakistan, would be the first line of support for UGS at TDM Center.

"It is a great honour for Simcon to be part of this service to the nation," said Simcon’s Managing Director, Farrukh Jamal, the prime mover of the effort from Simcon.

He added that the availability of UGS software at TDM Center would introduce state-of-the-art technical know how to the Pakistan engineering industry and further stated that we are grateful to UGS Corporation for their initiative and generosity.

UGS is a leading global provider of product lifecycle management software and services with nearly 4 million licensed seats and 46,000 customers worldwide.

[ABBASIA]

Prime Minister opens Boeing parts facility at PAC
KAMRA (February 28 2006): Pakistan on Monday joined the coveted list of countries manufacturing aircraft parts for the world's largest aircraft manufacturer - The Boeing Company.

Prime Minister Shaukat Aziz inaugurated the manufacturing facility at the Pakistan Aeronautical Complex (PAC), which is already manufacturing six types of aircraft, three types of engines, air defence and air-borne avionics systems and their components.

Prime Minister Aziz appreciated Boeings willingness to transfer technology to further cement business relations and help in building bridges between the East and West.

Boeing offered transfer of technology. Boeing Quality Management System Certification training and technical support to PAC, after evaluating all necessary infrastructure, expertise and internationally recognised Quality System at PAC.

It has received orders for manufacture of 476 parts by November 2006. Boeing is to purchase parts from the PAC till August 2010 under an agreement, which could be extended for another two years.

The PAC has also commissioned the hi tech CNC machines received for Boeing and continues to upgrade its manufacturing special processes - Heat and Surface Treatment and Non-Destructive testing facilities. Prime Minister Shaukat Aziz also inaugurated the C-130 aircraft propeller overhaul facility for the Hamilton Sunsdstran of Holland.

CHINESE FIGHTERS: Pakistan is also currently working on an ambitious joint production programme with China to replace its aging fleet of Chinese fighters, with a modern multi-role, all-weather, day-night aircraft. The PAC is supplying aircraft and services to several international companies, including the Rolls Royce USA, SAAB of Sweden, Sagem of France.

He said the companies should see the PAC as their extension. "We are not shy of performing, of delivering of being competitive and will supply you the quality products," he added.

Prime Minister Shaukat Aziz also called for more joint ventures and more focus on marketing to leverage the full potential of the organisation. He said with reliability, quality and dependability as its hallmarks, the PAC would now be a partner of Boeing and join the list of its international vendors.

The Prime Minister referring to the overhauling of propellers for the C-130 aircraft, said it was a workhorse used by many air forces around the world. "We need to market our capabilities and need to go for joint ventures," he added.

Describing the PAC as a "Centre of Excellence" he appreciated its role in the rebuild, manufacturing and design of aircraft and said, "every Pakistani is proud of PAC...you have made us proud."

He said the JF-17 Thunder will be the frontline aircraft of the Pakistan Air Force in the next decade as it has the necessary punch, the avionics and the capability to defend the country's airspace.

The Prime Minister said the PAC would expand its manufacturing capabilities in electronics, avionics and production of aircraft.

SELF-RELIANCE: He said self-reliance for essential defence equipment was very important for Pakistan as it has seen many ups and downs in the past.

"The more self-reliant we are, the more we are prepared for future challenges," he said. Prime Minister Shaukat Aziz said steps were under way to further enhance exports of the Super Mashak aircraft and appreciated that they have earned the PAC a good repute, both by civil and military users.

Air Vice Marshal Aurangzeb Khan, Chairman Pakistan Aeronautical Complex Kamra, said: "The PAC has developed a sound technological base that can meet international military and civil aviation standards."

He said the PAC underwent an in-depth survey and fulfilled all pre-requisites for the award of contract from Boeing. Four PAC factories attained the highest quality certification in Aerospace manufacturing of AS-9100 Rev B standard and the ISO 9001 Quality Management System.

"The expertise attained has not only synergized our existing indigenization and JF-17 co-production programmes, but has also enhanced our ability to absorb such offset related opportunities in future," he added.

Vice-President of Boeing Ms Mary Monica said: "The PAC can now work as a team member of the company and can also compete for future works." She said the PAC would be a member of Boeing's global supply chain and can provide quality parts at competitive prices.

Prime Minister Shaukat Aziz was accompanied by the Minister for Defence Rao Sikandar, Minister of State for Defence Habibullah Warraich, Minister for Defence Productions, Minister of State for Defence Zahid Hamid and Minister of State for Environment Amin Aslam Khan.

Earlier, Chief of the Air Staff, Air Chief Marshal Kaleem Saadat received the Prime Minister at the Minhas Air Base. He was briefed about the working and expansion plans of the PAC Kamra by the Chairman of PAC Board Air Marshal Aurangzeb.

The premier also witnessed the agreement signing ceremony for the manufacture of parts for Boeing by the Pakistan Aeronautical Complex.

[xyxmt]

REVO has a very good response from the buyer, i happend to talk to a person who bought 1000cc REVO and he gave me very good feedback.One of my colleague is interested to buy 800cc but it is only offered at display at Islamabad and not for sale.REVO is available in stock in Lahore and Karachi region. I was looking at PAMA site and didn't find any data on the production of these models although they are in production. I am hopeful that these model have hit the market well.

Just visited karachi and saw Revo 1000 CC car which someone own near my parents house. From outside it looks reallly nice, I think it will grab a big part to Alto market soon. Also saw their showroom opposite Taj mahal hotel, a nice big showroom

[ABBASIA]

Renault mulling car-making plants in Pakistan

ISLAMABAD: The government is following investor-friendly policies and special incentives are being offered to attract entrepreneurs to invest in different sectors of economy.

Like other sectors, the new entrants in the auto sector are also being offered a special package spanning three years. Under this package, the deletion requirements will not come into play, said Federal Minister of Industries, Production and Special Initiatives Jahangir Khan Tareen at a meeting with French Ambassador Regis De Belenet on Tuesday. According to an official statement, the meeting was also attended by Secretary Industries Kamran Rasool and Head of French Economic Missions for Islamabad and Kabul Jean-Phillippe Quercy.

The minister elaborated that we are working for a more comprehensive auto policy. The South African model is being studied for the purpose, said Mr Tareen, adding that a workshop is being organized on March 8 to elicit views from all the stakeholders for formulating an auto policy.

The French ambassador said foreign investment was booming in Pakistan, but the French share of this investment was very low. “So we are keen to increase our investment in Pakistan.” A French car manufacturing company, Renault, was considering setting up plants in Pakistan, informed the ambassador. He said Renault was among the world’s top 10 car manufacturers. Renault-Logan Model was making 450,000 cars a year and was expanding its worldwide operations to manufacture 1.2 million cars by 2012.

[ABBASIA]

Long-term policy for auto sector demanded

Staff Report

ISLAMABAD: Automobile manufacturers warned on Wednesday that their investment could be at risk if the government failed to outline a long-term policy for the sector, which had been growing at a tremendous rate for the past five years.

At a workshop, entitled Future of the Auto Industry in Pakistan organized by the Engineering Development Board (EDB), they criticized the permission granted by the government for the import of used cars by overseas Pakistanis and said: “The facility is being misused by commercial importers of vehicles.”

They called for rationalization of the tariff regime so that the present and future investment in the auto sector could be protected and promoted at the one and the same time. They called for a policy that stood unchanged for a reasonable long period, at least three to six years. The workshop was attended by a large number of experts from the auto industry, vendors and other stakeholders’ representatives. Experts from the automobile sector presented their research papers at the day-long workshop, which was divided into three sessions.

Saquib H Shirazi of the Atlas Honda Group said the exporting countries of the region were enjoying export subsidies. Further, their utilities cost, fixed infrastructure and financial costs were lower than those in Pakistan.

He called for allowing duty-free import of any exporter of motorcycles/auto parts of their CKD parts, plant and machinery, dies and equipments equal to 25 percent of wholesale value of their annual production. He also proposed the export complementation scheme, allowance for new investment and vendor export complementation

The low image of the country, absence of infrastructure support, slow modernization, no investment from Pakistanis and the culture of rules and regulations were the key concerns of the automobile industry, Mr Shirazi said.

Kenichi Ayukawa, MD Pak Suzuki Motors, also called for continuity of policy for at least six years so that investors could take concrete steps to consolidate their position. He feared that the road infrastructure could no afford the burden of vehicles as the Pak Suzuki was providing around 50,000 cars a year.

Mohsin Syed, managing director of Hybrid Technics (Pvt) Limited, said the automobile industry was facing a situation like television manufacturers who had faced a similar situation when TV sets being imported through the Afghan Transit Trade were smuggled back to Pakistan.

Pakistan was to increase its share in global engineering, and it had 63 percent share in the global trade. He said the actual investment in the auto industry was Rs 120 billion. The new policy should address the tax structure with a view to providing incentives to the investors for exports, he said.

Sikandar Mustafa Khan, chairman of Millat Tractors, said tractor manufacturing was largely a unorganized sector and it faced the problems of lack of proper design, sub-standard engineering and production facilities, low technical skills, non-availability of specified material and components at the retail level and the lack of testing facilities.

Chairman of the Central Board of Revenue Abdullah Yusuf said there was consistency in the policies of the present government. The private sector should come forward and take benefit of the potentials in the market as a level playing field had been provided.

He rejected the assumption of the car manufacturers that the facility being granted under the transfer of residence and baggage schemes to the overseas Pakistanis for import of used cars was being misused. Waseem Haqqie, EDB Chairman, and Imtiaz Rastgar, CEO EDB, said the economic policies of the government were intact. However, they assured that every possible effort would be made to support the automobile industry in Pakistan.

[ABBASIA]

Left-hand drive cars exported

KARACHI, March 9: Transmission Motor Company has exported two first left-hand drive vehicles to Qatar. The keys of two of its vehicle variants, Alif Cars and Bay Pickup Truck, were handed over to Jassim M. Sharshani for onward delivery to Ahmad Bin Sultan Al Assiri of Qatar.

The manufacturer of these vehicles is fully geared to meet the needs of left- and right-hand drive vehicles to cater to the local as well as export market. This diversification capability will enable the company to tap the export market and earn valuable foreign exchange for the country.

The trial export orders are expected to result in more orders from the emirate of Qatar, as the company has significant orders from Africa and South America, says a press release.

[ABBASIA]

Production of Boeing parts at PEC, PIA

Staff Report

KARACHI: A ceremony was held at Precision Engineering Complex (PEC) of Pakistan International Airlines to inaugurate the production of Boeing 777 parts at PEC.

According to a press release on Monday, chairman and chief executive officer PIA Tariq Kirmani congratulated Air Vice Marshal Muhammad Rafi, senior vice president PEC and his team of engineers for attaining a global recognition of manufacturing aviation parts for the Boeing Commercial Airplanes Company.

He stressed on the PIA workforce to strive for expanding the customer base in the international market.

Supply of parts to Boeing would improve Pakistan’s ability to produce aviation parts with a modest beginning of $1.2 million. The volume of sales would increase to $15 million and beyond.

Precision Engineering Complex of PIA is a department that has been engaged in producing state of the art aviation products for international customers like the Air Bus Industries and General Electric of United States.

This is besides Fischer Advanced Composites Company (FACC) of Austria and the Boeing Commercial Airplanes. PEC was established in 1978 and has ever since contributed in establishing state of the art technologies including CNC machining, electronics fabrication and design, production of optical elements, manufacturing of printed circuit boards, investment casting and related technologies.

[ABBASIA]

According to Aaj Television news during the Expo 2006 the visiting delegation of Magna International has shown interest to invest in a automotive parts manufacturing plant in Pakistan. Magna is among the biggest automotive parts producer employing 82,000 persons.

www.magnaint.com

[ABBASIA]

Two new car plants are coming up in Rahwali(other confirms it at Dhabeji), one is Mercedes Benz company in collaboration with Coastal Group of UAE and another is CCOE(some Chinese company) inauguration takes place next month, this was revealed by Aaj TV, the reports are confirmed by CM Sindh Arbab Ghulam Rahim and also by Minister Umer Asghar Ghumman while addressing the financial closure of Dost Steel Re-Rolling Mills a 50 million dollars plant in Qasur BhaiPheru.

http://www.pakobserv.....allocated: CM

1600 acres land allocated: CM

Sindh industrialization plan chalked out

John Thakur Das


Karachi—The Sindh Chief Minister Dr. Arbab Ghulam Rahim announced Wednesday that Sindh government has allocated 1200 acres of land to Mercedes Company and 400 acres to Prime Transport Company in Dhabeji on the instructions of Board of Investment.

Presiding over a high profile investment meeting at the Chief Minister House he said the government plans to facilitate more industrial organization companies to invest in the province and comprehensive program of arrangements has been chalked out in that regard.

The Chief Minister revealed that President Musharraf has issued special directives to offer best incentives for foreigners to set up industrial and mechanized units that should enable the government to create more employment opportunities for the people. To speed up industrialization of the province the Chief Minister said he has directed the authorities to cut down procedural formalities to the minimum to save time in documentation.

He instructed the Department of Industries to establish industrial parks in Sindh after consultations with experts who could render their advice for the purpose. He also directed the department to arrange for better facilities for setting up industrial units in Nooriabad on urgent basis. The facilities included supply of water from Kinjhar Lake and gas from Sui.

Talking about Kotri Industrial area Dr. Arbab said the government is planning stern action against land grabbers and encroachments. He issued orders that if allotees of plots do not utilize them within six months, their allotments should be cancelled.

He revealed that in Nooriabad 1700 acres of land has been allocated for setting industries and ordered investigations into its use whether the land is being used for the purpose it was allotted. He promised that an additional 1300 acres of land will be allocated in Nooriabad to accommodate growing demand of industrial plots after relaxing some rules for allotment.

The Chief Minister announced that industrial plots will be sold at 25 percent of the market price as law and order situation improves in the province and businesses are diverted to investment. A number of foreign companies have also shown interest in investing in Karachi while the Sindh government has invited Mansha Group to set up industrial units in the province.

The Minister of State Umer Ghumman told the Chief Minister that the Federal government plans to set up textile city in Sindh as foreign investment of USD 12 billion awaits implementation programs in the province. Others who attended the meeting were provincial minister for Industries Adil Siddiqui, minister for Mines and Mineral Development Irfanullah Khan Marwat, Sardar nadir Akmal Khan Leghari, Federal Commerce Minister Humayun Akhtar, Advisor to Chief Minister Sindh on Finance M. A. Jalil and secretaries of the concerned departments.

[ABBASIA]

http://www.ptl.com.pk/news5.htm

http://www.ptl.com.pk/news2.htm


Transport company unveils plan to manufacture taxis

Prime Transport Limited (PTL), Karachi, plans to manufacture 6000 purpose-built taxis annually that would have UK technology installed. The plan was unveiled and presented to Sindh Governor Dr Ishrat-ul-Ibad by PTL Chief Executive Muhammad Dawood Khan at the Governor House on Wednesday.

Dawood Khan explained the salient features of the project and requested the governor to help his company in acquiring 450 acres of land to start the proposed venture without delay.

The PTL CEO informed the Governor that out of the 6000 taxis, 3000 would be used in the country while the remaining 3000 would be exported. The cost of the project would be about $200 million and would employ at least 2500 workforce of various skills and trades. It is expected that a parallel ancillary and vendor industry would complement this novel project.






It may be recalled that the Board of Revenue has earmarked 17000 acres of land at Dhabeji that would ensure a convenient movement of goods to and from Dhabeji Industrial Area. PTL has already submitted expression of interest to install its manufacturing unit at this site as it realises that the area is ideal for such a venture.

Khan said that the taxi service would be satellite-controlled, which would be provided with call centres for controlling dispatch of vehicles accompanied by a technical and operational staff. A residential colony is also on the anvil to house the workforce and avoid commuting from long distances. A new power generation plant and water supply facility would be erected before the project is commissioned.

Dr Ibad listened to the proposal with interest and promised the PTL CEO that he (Governor) would visit Dhabeji to personally see the area that is destined to be an industrial city.

The governor asked Khalid Mahmood Soomro, Member Board of Revenue Land Utilization, to expedite the process of land allotment to facilitate the prospective investors, industrialists and businessmen start their business ventures. He firmly believed that the new industrial city would be a great success.

Others present at the meeting were PTL Director Mahreen D Khan, company Secretary Nasim Ahmed, Co-ordinator Ismat Abbas, Chief Minister's Investment Cell's Chairman Muslim Abbasi, Additional Secretary, LTI&C Department Kaleem Makki and acting Director General of Board of Investment, Karachi, Nasreen Ali.

Prime Transport Limited (PTL) TO BRING ICON OF LONDON ‘BLACK CAB’ TO Pakistan

Prime Transport Ltd., (PTL) was for quite some time working on a plan of operating Satellite Controlled Taxi Service in all major cities of Pakistan. In this connection a meeting was recently held between Mr. Abdul Sami Khan, Chairman, Mr. M. Dawood Khan, Chief Executive, Prime Transport Limited and the Directors of LTI Vehicles Ltd., United Kingdom who are the Largest British owned Vehicle manufacturers. It was mutually resolved that LTI Vehicles will join Prime Transport as its join venture partner to set up a Car Assembly Plant in Pakistan, preferably in close vicinity of Karachi, wherein the famous ‘Black Cab’ operating as a purpose built Taxi in London will be assembled from the CKD kits to be supplied by LTI Vehicles, U.K. PTL will also act as sole distributor for export of these Taxis to Middle East, other Asian Countries & Africa. PTL intends to operate Satellite Controlled Taxi Service through out Pakistan to provide safe, efficient, personalized, reliable and economical transport service to the commuters at their door steps. With this objective in mind the proposed taxi will be fitted with instruments of latest technology such as Satellite Controlled Tracking System, Seat & Door Sensors, Electronic Meters, Camera, Corporate and Credit Card Readers. The Taxi Service will be available at the door steps of the commuters against a telephone call or SMS.

PTL is itself sponsored by non-resident Pakistanis who have substantial business interests abroad. By joining hands with LTI Vehicles, U.K., a sizeable foreign investment will be brought to Pakistan.

The project as envisaged in likely to create a large number of direct and indirect employment opportunities, besides contributing towards the Government of Pakistan’s objective to provide dependable and economical public transport facilities to the people of Pakistan.

[umiqum]

Couldn't people make other cars that are being built in the country to taxis with all teh gadgets that they would offer. Then why so much investment in this project. This car is only going to be sold as a taxi so how much would it cost?

Maybe members from UK can shed some light on it.???

[Hellraiser006]

one is Mercedes Benz company in collaboration with Coastal Group of UAE and another is CCOE(some Chinese company) inauguration takes place next month,

i seem to remember reading something about this months ago but then nothing. Hope this happens.

[England]

Couldn't people make other cars that are being built in the country to taxis with all teh gadgets that they would offer. Then why so much investment in this project. This car is only going to be sold as a taxi so how much would it cost?

Maybe members from UK can shed some light on it.???

Got no idea whatsoever, this seems to me to be a real waste of money!. Having travelled to many nations, and living in the UK, it is much easier to convert a "normal" road worthy car into a Taxi. Even the black cabs in London are disliked by Londoners!.

[ABBASIA]

Body set up for mechanism to allow new car makers
RECORDER REPORT
ISLAMABAD (April 15 2006): The Economic Co-ordination Committee (ECC) of the Cabinet has constituted a committee, under the chairmanship of Prime Minister Shaukat Aziz, to formulate a mechanism to allow new entrant car manufacturers in the auto sector.

The Ministers for Commerce and Industries, Deputy Chairman Planning Commission, Minister of State for Investment and CBR Chairman will be members of the committee.

Sources said that the country's auto sector had approached the Prime Minister and asked him not to approve the policy prepared by the Ministry of Industries as it is.

The Ministry had recommended that new car manufacturers, like Renault and Volkswagen, which intend to produce cars at cheap rates in Pakistan, should be allowed to import 100 percent CKD kits at 35 percent customs duty.

"The Industries Ministry had proposed that new car manufacturers should be allowed to import 100 percent CKD kits at 35 percent customs duty, as many parts produced at local level will not suit them," official sources told Business Recorder.

However, in the new automotive policy, which they called 'incentivisation regime', it would be made necessary for the new entrants to purchase certain components manufactured locally on commercial considerations.

The Ministry observed that the local auto industry, dominated by Japanese companies, has developed a monopolistic culture, which is not only against the spirit of fair competition but is an attempt to bar new players wishing to enter the market, despite a huge demand-supply gap in the country.

"If the existing assemblers invest in new products (vehicles and assemblies) not currently manufactured locally, they could also qualify for the same concessions being offered to new entrants," they added.

To enjoy concessions at par with new entrants, the existing manufacturers would have to increase their equity substantially in the paid up capital of company in production of a totally different vehicle or production of a new assembly, currently not locally manufactured.

The Ministry is of the view that the major hurdle in the way of aspiring new entrants was the compulsory minimum local content requirement, which is also known as the 'deletion programme'.

With the government's decision to switch over to 'Trade Related Investment Measures' (TRIMs) compliant (tariff based system), the condition for new entrants to start assembly at 75 percent of existing deletion levels in terms of ISDP remains a stumbling block in investment from European manufacturers, the ministry further advocated in its proposal.

"Renault has expressed commitment to start producing cars, if it is allowed to import 100 percent CKD kits at 35 percent customs duty as it is not willing to pay 50 percent duty on the indigenised parts," sources said.

The proposed qualifying criteria for the new entrants to avail concessions are as follows:

(i) The new entrants should bring into Pakistan a substantial investment in the form of FDI and incorporate a company in Pakistan for the purpose.

ii. The company should be producing at least 1,000,000 cars per annum in countries other than Pakistan.

iii. The manufacturing capacity to be created in Pakistan should exceed 15,000 units per year; and

(iv) The new entrants must establish their assembly plants, or should have access to a recognised assembly plant having complete paint shop in Pakistan.

The Ministry of Industries and Production had started negotiations with Renault some time ago, which produces about 2.2 million cars in 12 countries around the world. The company now plans to produce an economy model--1499 cc family car--in eight countries including Brazil, India, Iran, Morocco and Thailand.

The company also intends to start production in Pakistan, provided a new entrant policy is formulated by the end of March 2006, which has already passed.

"If we formulate a policy acceptable to them, they plan to start working in Pakistan right away with the objective of producing the 1499 cc family car to be called 'Logan' and to market it in Pakistan at a price of Rs 640,000," sources quoted the Ministry as suggesting to the government.

Since the same model will be produced in seven other countries, parts and components developed by local vendors would be eligible for use in all countries producing the same model. Renault plans to use 25 percent-30 percent local content and bring Pakistan's vending industry in line with its global supply chain.

An additional dimension in this proposal is that Renault produces Nissan cars also on a shared platform. Component manufacturers would therefore have the opportunity to sell chassis components to both Nissan and Renault which would lead to broadening of vending base through more investment, technology acquisition, integration in the international value chain and job opportunities.

"All parts which have been indigenised and are imported by any assembler will be subject to 50 percent duty for a period of three years, starting from 2006-07," the Ministry said, adding that under the new tariff based system after three years, customs duty on indigenised parts will be 35 percent for the existing assemblers as well as new entrants," the Ministry assured the government, sources said.

http://www.brecorder...&term=&supDate=

[ABBASIA]

According to Jang Newspaper, YKK has acquired land for erection of its 20 million dollars plant at Karachi Exports Processing Zone. Honda is investing 100 million dollars in Motor Cycle segment mainly for exports orientation, Komatsu is negotiating with Pakistani companies for investment into manufacturing of heavy parts for its products in Pakistan, all these developments are results of Shaukat Aziz visit to Japan.

[ABBASIA]

Shaukat Aziz had laid down foundation of 500 million US dollar fertilizer plant at Rahim Yar Khan, Fatima fertilizer named company is owned by Arif Habib company, Chinese company will be building the plant. The plant capacity is 1.3 million tonnes. A very good addition to Pakistan Fertilizer Industry.

[Slayer]

do we import fertelizers also? also, do we export them?

[USAM]

I think that import is the case.

[ABBASIA]

the shortfall of fertilizer is around 1 million tons per year, many companies are in planning stage to plug the gap. the very basic ingredient is natural gas and all these plants are subjected to the approval of gas quota for the plants.

[Slayer]

fertelization without some knowledge of science is very harmful.

here in germany they farmers have to learn how to use fertelizers. how much in which crop and land etc. Coz over doing fertelization may prove catastrophioc to envoirment.

[platinum786]

we should look at a lot more use of natural fertiliser too.

[Tarbela]

fertelization without some knowledge of science is very harmful.

here in germany they farmers have to learn how to use fertelizers. how much in which crop and land etc. Coz over doing fertelization may prove catastrophioc to envoirment.

That should be done in Pakistan to educate farmers, the field staff in Pakistan, those who are suppose to give advise to farmers at the spot are the laziest people.Those guys are to be fixed to get green revolution in real term ... and hard work on part of farmers.

[platinum786]

farming folk are always interested in learning, because thier crop to them is everything.

We live in a small farming village back home and when i was theier on holiday someones buffalo died and people went to pay thier condolences to the owners.... I was in shock!

This is the extent of the love of farmiong for farming folsk, so if they know about proper use of fertilizer etc, they will understand and use it wisely.

[ABBASIA]

Hannover Fair proves big success for Pakistani exhibitors
HANNOVER (April 29 2006): The Hannover Fair 2006 came to a resounding close on Friday, April 28, 2006, with Pakistani exhibitors expressing complete satisfaction over their participation. Numerous companies bagged business orders, and availed opportunities from European markets. Total 60 Pakistani exhibitors took part in the fair held here from April 24-28, 2006.

Being better prepared to do business in the international market this year, Pakistan's exhibitors displayed maturity and professional acumen, which resulted in the companies securing business orders and opportunities from Germany and other European countries.

Imtiaz A Rastgar, Vice-Chairman and CEO, Engineering Development Board (EDB), commenting on the success of Pakistan's exhibitors, said, "The engineering sector in Pakistan has proven that, given the opportunity, Pakistani companies can compete in the international markets and become part of the global supply chain.

We met Presidents of various world famous companies in the European Union, including the President of the Federation of German Industries, and have signed MOUs for technical agreements, joint ventures and technical collaborations."

Rumi Moiz, Managing Director, Research & Development Engineering Company, manufacturer of precision engineering parts in Pakistan, said the company was overwhelmed with the response it received this year. "It has been a dream come true. The company that we have been benchmarking since last tear to emulate came to us to do business with our company! We are also moving on to Holland to continue negotiations with three others companies and sign an MOU with one of them."

Farhan Junejo, Pakistan's Commercial Counsellor in Germany, said that the Pakistan delegation made a positive impact at the Hannover Messe 2006. "With this rate of success, there should be no looking back. We have to sustain our presence here and continue to take part progressively so that Pakistan's industry gets its deserved recognition in the engineering sector. I was happy to be part of the team that did an excellent job with the arrangements at the Pakistan pavilion."

Pakistan's leading manufacturers of CNG dispensing machines, Tesla Industries' Aamir Hussain said, "We, too, have received very good response from international companies.

It is quite visible that international organisations and European companies are beginning to recognise the potential for outsourcing engineering manufactured components, parts and equipment to Pakistani companies."

Nabeel Hashmi, Chairman of Business Development Group (BDG), in his closing remarks to the exhibitors at the final debriefing, said, "I would like to congratulate each and every exhibitor, as well as delegates, for projecting an excellent image of Pakistan here in Germany. We made a positive impact in the international business community and were able to secure substantial business orders and enquiries.

"Hannover is not a one-time attempt; we have to be here for years to make a difference; we have made a start and, Insha 'Allah, we will be one of the leading industrialised nations of the world in the near future. I would also like to thank all members of the organising committee for their hard work and sincere efforts."

The main Pakistan Pavilion made an overwhelming impact in the 'Subcontracting Hall'. Pakistani exhibitors were also present in the Power Generation and Factory Automation halls. Visitors poured in large numbers and conducted business in a professional environment.

They appreciated the hospitality of the Pakistani team at the pavilion.

Pakistan participated at the Hannover Messe 2006 with a delegation of 220 people from the engineering sector, including some members of academia and media. Led by Jahangir Khan Tareen, Minister for Industries, Production & Special Initiatives, Imtiaz Rastgar, Vice Chairman and CEO, Engineering Development Board (EDB), and Nabeel Hashmi, Chairman of the Business Development Group (BDG-EDB), the Pakistan delegation had several bilateral and joint venture partnership meetings with counterparts in Germany and from various international companies.-

[ABBASIA]

It is difficult to distinguish between the Indian and Pakistani pavilions in adjacent halls at the Hannover Messe.

If India had SMEs showcasing products ranging from auto components to forgings, Pakistan too had similar stuff on offer.

However, for India, display of ISRO's prowess, Bhel's heavy engineering might, TVS bikes and investment options in states made the difference.

India had an edge partly because of being a partner country as also due to the longstanding relationship that firms had with the organisers of the fair.

The name of the game is the same — be it tax waivers in Pakistan's special economic zones or export parks or turning Lahore, Karachi and Faisalabad into textile cities with units ranging from weaving and spinning to large processing units.

It all sounds familiar. Pakistan is amongst the fastest growing economies, with 6.7% growth expected in '06-'07, Karachi Stock Exchange is booming and government will have a consistent economic policy.

But the officials selling Pakistan as an investment destination are facing one hurdle — law and order situation.

"There have been a lot of queries and our industry is also preparing to become a sourcing hub but law and order is one concern which we have to address,"a senior Pakistan government official said.

There are also questions over the stability of government and continuity in its policies. But all this has not deterred Pakistan from wooing international investors. Officials claim that Porche is on its way to set up a manufacturing facility and BMW may follow soon.

Why are investors flocking Pakistan? "We are doing well and they want to reap the benefits of our growth,"quips the official.

[ABBASIA]

EDB’s auto policy draft reviewed



LAHORE: The Auto Industry Development Programme (AIDP) draft, prepared by Engineering Development Board (EDB) was reviewed by a 13-member committee appointed by the auto industry at a meeting held here the other day.

The meeting presided over by Zahid J Yaqub, General Manager (Policy Development), EDB, was attended by CEOs and directors of car assemblers and office-bearers of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM).

According to a spokesman for EDB on Wednesday, the AIDP aims at expanding the auto industry capacity, achieving competitiveness, encouraging localisation and integration with global markets. It also provides for a safe and relatively risk free transition of the industry from deletion programmes to an open Tariff Based System (TBS).

The programme has recommended import duty at the rate of 35 per cent for CKD kits i.e. un-indigenised, 50 per cent for indigenised components for three years and import duties at the rate of 35 per cent for spare parts.

It contained yearly phase down of tariffs on indigenised parts with certain percentage points. But, the committee recommended that the same rate should be protected for five years in order to facilitate long-term investment by the industry.

The Programme contains ‘Productive Asset Investment Incentive’ (PAII) to create more capacity, upgrade and modernise the existing facilities and to introduce advanced technologies through investment in the productive assets both in the assembly and component manufacturing sector. It includes die & molds, jigs & fixtures, designing and styling, in-house manufacturing, logistics and software and research & development.

On used car imports, the Programme suggested ‘corrections’ by the industry and tightening of rules and procedure by the govt.

In order to modernise and to make auto industry globally competitive and to enable it to cope with the targeted production of 1/2 million cars by 2010, the Programme recommends sizeable investment by the industry in forgings and castings, cutting and grinding tools, sintered products, heat treatment, machining centers, engineering plastic, electronic connectors, sheet metal etc.

[ABBASIA]

New CRC plant for Pakistan’s Aisha Steel

Aisha Steel Mills ASM is planning to build a new cold rolling mill in Karachi. The Pakistani mill announced that they have plans to invest $100 million to set up the new 350,000 tons per year mill. ASM plans to supply the new mill's output to the local automobile and engineering industries. ASM is owned by a Japanese metal trading company, Universal Metal Corp. UMC. Bank loans will account for 70 percent of the financing for the project. The other 30 percent will be through equity by Japanese companies. The current possible Japanese equity may from Marubeni-Itochu Steel and Mitsubishi Corp. The mill equipment may from Japan, South Korea, the US, Italy or Austria. ASM will decide that at the end of the year. However, another main point will be the cost of the land. Pakistan government is finalizing the price of the land to ASM which is owned by Pakistan Steel. Although ASM has asked the Pakistan government for a cheaper price, the land cost will definitely be ASM's main concern

[ABBASIA]

Some good engineering companies links who participated in Hannover Messe 2006 fair:

www.bolancastings.com
www.sbgears.com
www.amtcpdc.com
www.silverfalconeng.com
www.tesla-tech.com
www.fasengineering.com
http://www.pakspring.com/
www.powerwheels-Pakistan.com
http://www.kadkamparts.com/
http://www.ultima-technologies.com/
http://www.supertech.com.pk/
http://www.secopak.com/
http://www.apep.com.pk/
http://www.alcovalves.com.pk/
http://www.loads.com.pk/
http://www.mecas.com.pk/
http://www.metwork.com.pk/
http://www.allwin.com.pk/
http://www.infinityengg.com/
http://www.msforgings.com/
http://www.metalinegroup.com/

[ABBASIA]

1.28 million tpy of new HDRI-capacity to be located in Karachi, Pakistan
May 15, 2006


Al-Tuwairqi Group, Dammam, Kingdom of Saudi Arabia, has announced that it has signed a contract with Midrex Technologies Inc. to build a new Midrex Megamod Hot Direct Reduced Iron (HDRI)/Hot Briquetted Iron (HBI)/Cold Direct Reduced Iron (CDRI) Plant in Karachi, Pakistan.

The new DR plant capacity will be rated at 1.28 million tonnes per year and initial production will be 100% CDRI. The plant will be configured to allow the possible addition of briquette machines in the future to produce Hot Briquetted Iron (HBI). The facility will employ many of Midrex’s latest innovations to minimize energy consumption and control product quality.

The new plant will be operated by Tuwairqi Steel Mill, a member of the Al-Tuwairqi Group.

Al-Tuwairqi acquired two Midrex DR Plants in Mobile, Alabama from Corus Group Plc. in December 2004. The two plants each have a production capacity of 400,000 metric tons per year.

Last year Al-Tuwairqi signed a licensing agreement to operate one of these Midrex modules. That plant will be known as Direct Reduction Iron Factory and is currently being renovated and rebuilt adjacent to Al-Tuwairqi’s Al-Ittefaq Steel Factory in Dammam.

No plans have been announced for the 2nd module at this time. The 400,000 Modules will have a new rated capacity of 500,000 each through equipment replacement and new process engineering advancements.

Al-Tuwairqi's steel plant produces steel bar from billets produced in their new melt shop which began operations in 2004. The new DR plants will enable the Al-Tuwairqi Group to better manage raw material costs and ensure a supply of iron units for their existing facilities in Dammam as well as planned future operations.

http://www.steel-gri...cle_00400.shtml

Saudis invest in two major steel projects in Pakistan
Analysis by M. Aftab

9 April 2006



ISLAMABAD - Saudi Arabia has come up prominently in Pakistani steel sector. Saudis have invested in two major projects — a state of the art new steel plant, and purchase of Pakistan’s biggest steel mill.


The $ 130 million Tuwairqi Steel Mill (TSM), being built by Saudi Arabia’s biggest steel producer, Dr. Hilal Hussain Al-Tuwairiqi, Chairman of Al-Tuwairqi Group of Companies (ATG), plans to start production within 18 months.

Saudi ATG, and its 3-member consortium has also purchased 75 per cent shares of the country’s biggest industrial project— Pakistan Steel Karachi (PS) for $ 362 million in an auction this week. The two other members of the consortium are: Russia’s M. Magnitogorsk Iron & Steel Works Open JSC and Arif Habib Securities of Pakistan. It outbid the second Consortium that included Noor Financial of Kuwait, the Government of Ras Al Khaimah, Al-Jomaih Holdings of Saudi Arabia, and Industrial Union of Donbass of Ukraine.

Awais Ahmad Leghari, Minister for Privatisation, is highly upbeat over the sale of PS, and said Saudi Arabian, Gulf and Middle East interest "is very high in making new investment and purchase of big ticket state-owned enterprises that are being privatised."

President Pervez Musharraf, this week, performed the Foundation Laying ceremony of Saudi TSM at Karachi, and its construction started. It will annually produce one million tons of steel. The capacity can be expanded to 1.5 tons, and later to three million tons.

President Musharraf applauded Dr. Hilal’s decision to invest in steel in Pakistan, and provide excellent training to its personnel and engineers.

Dr. Hilal said "It is our first venture in Pakistan, but surely not the last. It has now been for more than 25 years of success of ATG Companies. It has been two and a half decades of Commitment and dedication to serve our people. Today, the Group by virtues of its immense diversification stands tall in the field of manufacturing and progressively going beyond the boundaries of the Kingdom of Saudi Arabia. We have always looked at business opportunities that may support and contribute towards the economic development of the countries that we work in, through our corporate goals and responsibilities. The same is our vision for Pakistan," where the Group’s first steel mill is being established at Karachi.

Dr. Hilal said, " We believe, Pakistan is land of extraordinary talent and leadership qualities. The professionals in Pakistan, trained at our state of art steel complex at Karachi will evidently become an asset for the Group and accomplish our mission of expansion worldwide. Our focus remain on the fact track completion of the project." He said, ATG has "selected Pakistan for the modern steel mill for its investment-friendly rules, regulations and policies," he said.

ATG Vice Chairman M. Tariq Barlas said, " the plant, using the directly reduced iron (DRI) technology and will produce one million tons of steel a year in the first phase. It will, later, go up to three million tons a year." It will directly employ 3,500 engineers and technicians and create "massive job opportunities in the services sector."

President Musharraf, speaking at the foundation laying ceremony said, " Pakistani economy will gradually shift its focus from agriculture and textiles to heavy industry and engineering to achieve a quantum jump in the country’s exports." He appreciated ATG’s proposed plan to train Pakistani engineers and technicians. He said, "Pakistan and Saudi Arabia enjoy brotherly relations for years. Trade is improving, but more investment is to be encouraged. Dr. Hilal is exactly doing this to further enhance bilateral relations. The two countries will cement their business and economic relations in the 21st century," he said.

As construction of the new TSM plant started, the highlight of the same week was purchase of the Pakistan Steel Karachi by ATG-Consortium. The Russian-built, state-owned Pakistan Steel went on stream in 1984, with a 1.1 million tons a year capacity. It is the country’s only integrated steel plant. It includes coke oven batteries, a sintering plant, blast furnaces, steel converters, bloom & slab casters, billet mill, hot & cold rolling mills, galvanizing unit, supporting units, and a 165 mw of its own power generation capacity. It has 4,457 acres of land.

Among the three member consortium that has purchased 75 per cent shares of Pakistan Steel, Al-Tuwairiqi Group (ATG) has a 40 per cent share, M. Magnitogorsk Iron & Steel 40 per cent, and Arif Habib 20 per cent. The price of Rs16.80 per share for 1.29 billion shares comes to Rs 21.672 billion, equivalent to $ 362 million. The winning consortium will pay 25 per cent of the total bid money in 20 days, and complete the entire payment in 60 days. The total price of 100 per cent shares was $ 482 million at the rate of the successful bid. The second consortium, that lost the bid, had offered Rs16.50 a share, or Rs21.285 billion.

Recent months have seen considerable Saudi and Gulf FDI inflows into Pakistan. The investment were into telecom, financial, infrastructure, utilities, energy, ports, and real estate sectors, besides steel.

Some of these include purchase of 26 per cent shares, with management control, in March, of the state-owned telecom giant, Pakistan Telecommunication Company Ltd (PTCL), by Abu Dhabi’s Etisalat. Etisalat has purchased the shares for $ 2.6 billion. UAE also has launched its Al-Warid cellular phone company which is growing fast inspite of the fact that there are five more mobile companies in the field. The Abdu Dhabi Group (ADG) that purchased part of the shares with management control, of the big, state-owned United bank Ltd. two years ago, is growing fast. Its profit after tax was 62 per cent in 2005.

"United Arab Emirates will invest in all sectors in Pakistan, including energy, Muhammad bin Dha’en Al-Hameili, the UAE Minister for Energy, had announced during his February visit to Islamabad. A number of UAE investors have also started real estate projects in Karachi, Lahore and Islamabad. Saudi Arabia’s Al-Jomaih Group, joined hands with Hassan Associates-Premium Mercantile of Pakistan Consortium that purchased 73 per cent shares and management control of the big state-owned power monopoly— Karachi Electricity Supply Company Ltd. (KESC) for $ 340 million, in November last. It generates 1,750 megawatt electricity and feeds the big industrial hub of Karachi and the southern part of Sindh province. Germany’s Siemens is the technological partner in the Consortium. The Consortium has announced to invest an additional $ 500 million over five years to expand and upgrade KESC.

Custodian of Two Holy Mosques King Abdullah bin Abdul Aziz, during his recent visit to Islamabad announced that Saudi Arabia is planning to significantly expand its assistance, investment, trade and cooperation in the energy field in Pakistan. Oman this week announced it will invest $ 80 million to develop Gwadar port and infrastructure — a facility that has come up just across from the Straits of Hurmoz, at the western tip of Pakistan’s Mekran Coastline. Omanese Foreign Minister Yousaf bin Alawi bin Abdullah announced said this week during his meeting with President Pervez Musharraf, that his country has already invested $ 20 million in Gwadar infrastructure, including its new international airport. Besides the sea port and airport, Gwadar will be a huge industrial, business, commercial, telecom and transshipment hub to serve Gulf-Saudi Arabia, South East Asia, the Central Asian Republics, most of which are landlocked quickly need a shipping outlet to trade with the Gulf, Middle East and South Asia, and rest of the world.

http://www.khaleejti...n=business&col=

[Hellraiser006]

abbasia,

would u like me to pin this topic for u?

[ABBASIA]

Thanks Hellraiser,

Yeah I will definitely like this post to be pinned, the prime reason is that I want to record all the activity going on in engineering sector in Pakistan. Because we are now moving into second generation of industries, moving away single focus on textile industry to engineering sector which constitute 63 pc of world trade and was neglected in our past policies. There is huge explosive growth going on this sector and needs to be focused and discussed. Pinning this topic will help me to keep tracking the topic easily.

Thanks for your input.

Regards

[PS:Annonymous]

It is Fixed

Edited by Psychosaint, 26 May 2006 - 04:32 PM.