TSML: Indigenous Development in Steel Making Process

Tuwairqi Steel Mills Limited (TSML) is Pakistan’s first private-sector integrated steel manufacturing project designed to use the world’s most advanced DRI (Direct Reduction of Iron) technology based on the MIDREX process, owned by Kobe Steel of Japan. Spread over 220 acres, and established through the foreign direct investment of Al Tuwairqi Holding of the Kingdom of Saudi Arabia.

TSML plans to produce 1.28 million tonnes of high quality steel to be consumed locally. TSMLE – the engineering and fabrication subsidiary – hopes to become owners and designers rather than mere users of the MIDREX process through design and experimentation. In addition, with the fabrication of 50-70% structures of the Karachi facility in Pakistan and the 110 meter high tower – the tallest in Bin Qasim – TSMLE also hopes to become the fabricator of plants and structures not only in steel-making but in other heavy industry sectors.

The innovative first for TSMLE is not just the first deployment of the DRI process but also performing material balancing of the reduction furnace and CFD modeling (planned) as well as balancing and simulation of the reformer and thermodynamic modeling (planned). With this, TSMLE would have achieved complete knowledge of designing and implementing process resulting in considerable design flexibility in operating the TSML plant in Karachi.

TSML’s process will produce steel at 30% less energy intensity than Pakistan Steel and TSMLE’s local fabrication expertise resulted in savings of $150million in foreign exchange. TSML’s production will alleviate the demand and supply gap (8.4 million tonnes vs. 4.9 million tonnes) and bring Pakistan’s steel usage (37 kg/capita) at par with the region (208 kg/capita) and the world (182 kg/capita).

TSMLE also seeks to create its own R&D facility for the broader Al-Twairiqi Group of Saudi Arabia with several large facilities and become a regional player in Engineering Design and Fabrication. It is a great example of local innovation, indigenous development, and foreign collaboration in Pakistan.

After a haitus of 2 years, TSML was inaugurated yesterday (12/1/13)

Source: Several interviews in 2010, media reports.