The Military Engineering Services (MES) of the Pakistan Army has enlisted Agha Steel Industries Ltd. as the manufacturer-cum-supplier of deformed steel bars for its projects.
The Engineer-in-Chief’s branch has already issued the company a provisional certificate of enlistment.
“It is a major milestone for us,” Hussain Agha, the Chief Executive Officer (CEO) of Agha Steel, said in a statement.
We are grateful to the MES for enlisting us as a manufacturer-cum-supplier of quality steel products. God willing, our company will come up to the expectations of the military, meet its requirements, and help it build Pakistan.
Agha Steel is the first private sector steel manufacturer employing Italian Electric Arc Furnace technology, a steel recycling furnace which is considered the most accredited and quality-centric method of manufacturing worldwide as well as the fastest-growing technology that companies are adopting today in the private sector, in Pakistan.
The company had issued Initial Public Offering (IPO) last month to raise funds to finance its second phase of capacity expansion. The IPO, the third during the current fiscal year, proved to be a resounding success and was oversubscribed. The IPO consisted of 120 million ordinary shares or 20.83 percent of the paid-up capital of the firm.
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In the second phase, the company is bringing a new, disruptive steel rerolling technology, MiDa. The technology is said to be a game-changer for the steel industry as it reduces the entire production cycle to just two hours in addition to increasing yield efficiency to over 99 percent in comparison to Pakistan’s existing standard of 90 to 91 percent. Additional benefits will come from energy and time savings as the company’s rerolling capacity will rise to 650,000 tons on completion of the project in June next year from the existing 250,000 tons. The firm has a steel melting capacity of 400,000 tons.
Commenting on the technology, Agha remarked,
MiDa is a disruptive technology that will use an endless casting and rolling procedure. We won’t have to make billets at all unless we have to. This will bring down the entire production cycle — raw material to rebar — to just 2 hours. This is a game-changer for us.
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He further added, “We are expanding our production facility. But it is not to become the largest company. Our real pursuit is to manufacture high quality, diversified steel products in the most efficient manner, using the latest technology available in the world.”
