Agha Steel signs Rs10.5 billion MoU with Horizon Steel

Agha Steel Industries has signed a memorandum of understanding (MoU) with Horizon Steel to sell 100,000 metric tons of low-carbon billets worth approximately Rs 10.5 billion. The MoU will ensure that Agha Steel will reliably supply the intermediate steel product that the downstream steel industry uses as raw material. With the realization of this MoU, Agha Steel’s sales are going to grow by 68 per cent from the current level within a year

Suleman Lakhani, chief marketing officer of Agha Steel while speaking at the event said “Thanks to product innovation and heavy investments in R&D, Agha Steel is able to manufacture for the first time in Pakistan refined low-carbon quality billets that are used in the wire rod industry.”

The company uses the latest European electric arc furnace technology supplied from Danieli to produce billets, a transitional steel product that can either be turned into steel bars used in construction or transformed into wire rods to manufacture many high value engineering products. Agha Steel has invested in a high-efficiency and environment-friendly electric arc furnace. It recently increased its billet-making capacity from 250,000 MT to 450,000 MT a year.

Speaking on the occasion, Horizon Steel CEO Shoaib Sultan said it was encouraging to witness that steel products can now be made end-to-end within Pakistan. “I expect the downstream industry will see tremendous growth in coming years and the future looks very bright” he said.