Universal Metal to Establish Cold Rolling Mill in Pakistan

Pakistani steel sheet exporter, Universal Metal Corporation based in Chiba Prefecture, Japan announced on Thursday the firm establishes a joint cold rolling mill in Pakistan with Japanese major business house, Metal One and Pakistani finance company. They will invest US$ 100 million or 11.9 billion yen to establish a mill with production capacity at 220,000 tonnes per year and will start the commercial operation in April 2009. Universal Metal also examines to introduce a galvanizing line in the second phase, which will start the supply for building construction as alternatives for the import and advance high grade fields for automobile in future. The firm already got the land at 160000 square meters near Pakistan Steel in Kalach suburb. New company’s name is Aisha Steel Mill. Aisha Steel Mill will purchase hot-rolled steel sheet from overseas such as Japanese integrated steel maker, and will start to produce cold-rolled steel sheet with below 0.6 millimeters thick which can’t produce in Pakistan until now. Universal Metal orders pickling equipment, cold rolling mill, annealing equipment, electrolytic cleaning equipment and re-coiling equipment after 2-3 months when the firm sees the light at fund-raising from Pakistani banks. Cold-rolled steel sheet demand is at 750,000 tonnes per year in Pakistani. Domestic production of cold-rolled steel sheet is 250,000 tonnes. Pakistan imports it at 500,000 tonnes. Universal Metal aims the high grade steel demand for automobile which is expected to expand.