Pakistan has posted robust economic growth in recent years, emerging as a market generating particularly high hopes for expanded automobile and motorcycle production. Pakistan currently does not host any companies along the lines envisioned for the joint venture, so this will mark the launch of the country’s first full-fledged steel product processing centre. MID Pakistan Coil Center will provide high-calibre services through the processing and sales of steel products, meeting the needs of local customers in the automobile, motorcycle, electric appliance and building materials fields as well as the highly diversified demands of Japanese companies slated to expand to Pakistan. The centre is expected to make a solid contribution to the ongoing and significant growth of the Pakistani manufacturing industry.
MISI to build steel processing centre in Pakistan
Marubeni-Itochu Steel Inc. (MISI) entered into an agreement with Dawood Engineering – a local manufacturer of automotive parts and components in the Islamic Republic of Pakistan – to jointly establish a new company in Bin Qasim Industrial Park outside of Karachi City in Sindh Province, Pakistan. The new company, MID Pakistan Coil Center, will process and sell steel products. The joint venture contract includes capitalisation of USD 5M (equity breakdown: MISI 74%, Dawood 26%). Operations are scheduled to commence in July 2015, with an annual processing capacity of approximately 70,000 tons.