Mughal Steel has postponed the commissioning of its “Phase 2” billet and rebar capacity expansion to the second quarter of 2019 from the initially-scheduled end of 2018, Kallanish learns from the Pakistani long steelmaker.

Mughal currently has a 546,000 tonnes/year induction-furnace based melting capacity that will rise to 942,000 t/y following the expansion. Rolling capacity, meanwhile, is increasing to 968,000 t/y from 688,000 t/y after the firm contracted Italian technology supplier Nuova Carpenteria Odolese to provide a 430,000 t/y capacity rebar mill.

The increased capacity will reduce reliance on merchant billet and improve margins. The new induction furnace will also enable ‘direct rolling’ of hot billet into rebar, rather than using billet reheating furnaces. The firm already uses this process at its sections mill. 

Mughal Steel increased revenue 18% on-year in the fiscal year through June 2018 to PKR 22.23 billion ($180 million), while net profit rose 30% to PKR 1.29 billion.