Century Steel Mill Threatens Shutdown Amid Mounting Challenges

Century Steel Mill, located in the Rashakai Economic Zone, has warned of shutting down due to high land cost, unfair competition, and operational challenges. These issues were detailed in a letter to Pakistan’s Prime Minister, outlining grievances with costs, power shortages, and security expenses impacting their business operations.

Century Steel Mill, a prominent entity within the Rashakai Economic Zone, has signaled intentions to cease operations, citing a multitude of grievances, ARY News reports. Notably, Rashakai SEZ is a critical component of the China-Pakistan Economic Corridor (CPEC) initiative, characterized as a priority by the China-Pakistan Joint Cooperation Committee.

According to ARY News, Century Steel communicated its issues directly to Prime Minister Shehbaz Sharif via a formal letter, expressing concerns regarding the economic viability threatened by exorbitant land costs and inequitable market conditions intensified by steel mills in the FATA and PATA regions, impacting the broader steel sector in Pakistan.

The mill has also highlighted significant operational burdens due to recurring power shortages and bureaucratic holdups in obtaining approvals from NEPRA, ARY News noted. Additional challenges include import barriers for machinery, escalating steel costs, and excessive security expenses. The letter served as a final warning, urging the Pakistani government to address these constraints or face the potential dismantling of the plant.

(With inputs from agencies.)