Karachi September 24 2024: Amreli Steel Limited, the largest billet manufacturers of Pakistan, temporarily suspend SITE Rolling Mill due to economic slowdown.
The Board of Directors concerned about the significant economic challenges facing the documented steel sector. These challenges have been aggravated by various economic and political factors, including declining demand for steel rebars, rising utility costs (particularly electricity), high interest rates, an unbalanced tariff structure, heavy tax burdens, smuggling, and increased undocumented activities, all of which contribute to unfair competition and severely disrupt market equilibrium.
Considering the unprecedented macroeconomic conditions, the Board has decided to temporarily suspend operations at its oldest Karachi-based manufacturing facility, SITE Rolling Mill (SRM), which represents 30% of the Company’s total production capacity. The situation will be reviewed in six months, and the facility may reopen if conditions improve. During this period, the Company will continue operating its Dhabeji facility, which accounts for 70% of its production capacity, to meet current and future steel demand.
