27 July 2011

Pakistan shipbreaking industry fulfills 70pc iron, steel requirements:

ISLAMABAD: With the revival of work in Gaddani shipyard in Balochistan, the shipbreaking industry has been currently meeting 70 percent iron and steel requirements of the country, claims a report on Wednesday.

With the increase in activity at the Gaddani shipyard, the number of people employed there has raised to 12,000, said Engineering Development Board reported (EDB) report quoting Pakistan Ship Breaking Association.

The shipbreaking activity at Gaddani Shipyard has broken last 12 years recorded with more than 50 big ships being hammered currently, report added.

It said that 95 percent of the old scrap is recycled and reused, adding that the shipyard industry meets country's demand for steel, steel-related products and non-ferrous products and machinery.

Pakistan Steel Mills has not been working on its full capacity and cannot fulfill the country's requirements, so iron and steel obtained from the shipbreaking helps meet the demand, report said.

Karachi Iron and Steel Merchants Association said that currently Gaddani shipbreaking is making most of the requirement of re-rolling mills.

About 20 percent requirement is fulfilled by imports from Ukraine, Turkey and former Soviet countries and by Pakistan steel.

But material supplied by shipbreakers is much cheaper than that sold by Pakistan steel as Gaddani shipbreaking raw material is available at cheaper rate of Rs55,000 per ton.

Copyright APP (Associated Press of Pakistan), 2011

Source: Business Recorder. 27 July 2011

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