Steel Manufacturing Company Sets Up Subsidiary To Bring Modern Construction to Pakistan
The locally listed Steel Manufacturing Company International Industries Limited (INIL) has set up a wholly-owned subsidiary i.e. IIL Construction Solutions in order to tap the construction sector of the country.
This new company will set up a new trend of construction that will enhance the pace of work in the construction of high-rise buildings and residential societies which have been planned by local builders recently.
Scope of Work
Using IIL scaffolding tubes and ISL coils, CSL will manufacture with the most modern equipment (including welding robots) Scaffolding, Shoring, and Formwork products and systems used in the construction industry.
According to the notification to PSX, these products and systems will not only be sold in the market but in order to make them readily available, will also be supplied on a rental basis nationwide across major economic centers.
The company will provide customers with technical assistance and services in the design stage related to selection and layout of solutions as well as provide services at construction sites with respect to the erection/dismantling and inspection of the respective solutions to ensure high efficiency, cost-effectiveness, quality, and safety.
CSL will further provide structural engineering and steel fabrication services as well turnkey construction solutions based on IIL HSS tubes and pipes, thereby providing customers with further value-added services. It will fabricate and supply various kinds of engineered steel structures and products using IIL’s HSS tubes and pipes.
The structures will include, but not be limited to, warehouses, industrial sheds, residential and commercial constructions (including extensions), solar structures, pedestrian bridges, car porches. pergolas and gazebos etc.
This investment would ultimately result in conserving foreign exchange, bring forth economic growth and sustainability. At the same time, this will facilitate employment opportunities in the industry.
INIL is a significant contributor to the country’s foreign exchange inflow and a model corporate citizen. Its exports over the last 5 years exceeded USD 238.4 million and it has won FPCCI’s export awards for the last 20 years, with sales to 60 countries in North America, Europe, ‘Having established its status as a world-class company over the last 71 years both within and beyond Pakistan.’
In the last 5 years, the company has also contributed over Rs. 19.3 Billion in duties and taxes to the national exchequer.
The federal government has announced incentives for the construction sector including tax waivers to attract investments. The setting up of a subsidiary depicts the emergence of the construction allied sector.
It is an encouraging sign that listed companies are expanding their business in this sector. Recently, Singer Waves Limited also showed its intent to explore opportunities in the real estate and construction sector.