Dost Steels Limited announced that it would be starting trial productions from 1st of February.
“DCL shall start its trial Production from 1st February 2018 and subject to the satisfactory completion of these trials, it is expected that the commercial operations shall start from 1st March 2018”, read the notification.
However, DCL cautioned “Start of commercial production requires a number of clearances from all the relevant project plant suppliers, technical rolling consultants and engineering staff during the course of trial production. Only on achieving these clearances will the full and final Date of Commercial Production be realized.”
Dost Steels’ Debt Negotiations With Pak Kuwait Investment Company Fail
Previously in December last year, DCL’s debt restructuring negotiations broke off with Pak Kuwait Investment Company (PVT) Limited.
Dost Steels said PKIC’s demands were not in line with terms of restructuring agreed upon with other lenders, which led to the collapse of talks between the two companies.
According to the company website, Dost Steels wants to tap the growing construction market of Pakistan, which is continuously showing strong growth due to the improving macroeconomic indicators. The company is especially eyeing the upcoming projects under the China-Pakistan Economic Corridor (CPEC).
The mill is a Greenfield automatic plant with an initial capacity of 350,000 tons per annum which will produce hot rolled, high tensile, deformed steel bars.
Analysts expect strong steel demand in coming years mainly due to the strong growth in construction industry and mega infrastructure projects related to CPEC.
DSL script at the exchange was trading at Rs 13.15, up by 2.26% with a turnover of 14.02 million shares.