Lahore November 18 2022: The Board of Directors of BECO Steel has approved the feasibility of installing a new automated mill inside Unit I due to the high cost of furnace oil, Sui Gas, and imported coal for re-heating MS Billets, according to company filing to the exchange.
Previously this unit having one 12 tons furnace which produces billets but now this will be a composite unit.
This unit will use hot direct rolling technology to manufacture angle and channel bars, increasing rolling capacity by 4,500 per metric tons per month. The company’s production capacity and sales volume will increase while saving approximately PKR 15 million per month on Furnace Oil and Sui Gas.
“With this expansion, we will be required to purchase local billets from the local market in order to supply our Unit 2. (Guarder mill), The new mill is expected to cost PKR 400 million and will be completed in April 2023” says Chief Executive Officer Ali Shafique Chaudhary
Beco Steel Limited currently does not have any bank borrowings. In the best interests of the Company’s profitability and shareholders, management is arranging funds through internal sources and a third party at a low interest rate.
Ali Shafique Added, “We anticipate that the impact of this plant will increase profitability in the fourth quarter, and that we will, inshallah, reach new sales milestones.”
Beco Steel Limited, formerly Ravi Textile Mills Limited, is a public limited company incorporated in Pakistan under repealed Companies Ordinance 1984.
