A leading Saudi steel company has signed a memorandum of understanding (MOU) recently in Pakistan to set up a direct reduced iron (DRI) and steel billets manufacturing facility at Port Qasim in Karachi.
“The project with an initial investment of $150 million is another significant landmark in the Saudi-Pakistan bilateral relations,” Chairman of the Al-Tuwairqi Group, (ATG) Dr. Hillal Al Tuwairqi told Arab News adding that the project will be implemented in two phases.
Dr. Tuwairqi who described Pakistan as a gold mine for investors said he was impressed by the multi-faceted investment opportunities in Pakistan supported by its geographic location, tremendous wealth of natural resources, availability of suitably trained human resources, investor-friendly government policies and above all a very strong commitment of the government of Pakistan to achieve the development objectives.
“The investment by ATG in setting up the DRI and steel billets manufacturing facility, mainly for export purposes, would not only contribute to the export earnings of the country but would also generate employment opportunities,” Dr. Tuwarqi said. He added that investment in Pakistan would not only be limited to the steel business but also it would be extended to other areas of viable ventures.
“At present agriculture, power and telecommunication sectors are being actively evaluated for future investment,” he added.
The project will have a production capacity of one million ton per annum and according to Dr. Tuwaiqri, the government of Pakistan has assured the group of all necessary provisions and co-operation.
Al-Tuwairqi group of companies (ATG) is one of the leading industrial groups in the Kingdom. From a modest beginning as a trading establishment 25 years ago, the group has grown to the distinction of being ranked among 10 largest industrial companies and overall top 50 companies of the Kingdom, in terms of total revenue for the year 2003.
The group is also one of the fastest growing private sector establishments of the Kingdom and ranked only 3rd on the basis of year-on-year revenue growth for the year 2003.
The other companies under Al-Tuwairqi group include Al-Ittefaq Steel Products Factory, National Iron and Steel Factory, Al-Faisal Steel Products Factory, Thames Steel (United Kingdom), The International Electrical Products Company (TIEPCO) and Business Divisions: Trading & contracting, cement, industrial supply, information technology services, scientific and medical.