China’s Century Steel Mill has threatened to withdraw from its steel project in the Rashakai Special Economic Zone (SEZ), citing significant challenges, according to local media reports.
The Rashakai SEZ, a flagship initiative under the China-Pakistan Economic Corridor (CPEC), is prioritized by the China-Pakistan Joint Cooperation Committee as a key industrial development zone.
In an official letter to Prime Minister Shehbaz Sharif, Century Steel outlined 18 grievances, highlighting major obstacles affecting the project. Among the concerns are the high cost of land within the economic zone, making the project economically unviable, and unfair competition from FATA and PATA-based steel mills, which is destabilizing the broader steel industry in Pakistan.
The company also expressed frustration over inconsistent tax policies in the steel sector, citing the closures of major players like Amreli Steel and Agha Steel as examples of the challenging business environment. Additional issues include power shortages, delays in approvals from the National Electric Power Regulatory Authority (NEPRA), and pressure to establish an on-site solar power plant.
Other obstacles include declining demand for steel products due to soaring costs, high security expenses, and difficulties importing machinery despite directives from the State Bank of Pakistan. The letter concludes with a stark warning: “This is our final communication. If the situation doesn’t improve, we will begin dismantling the plant.”
Century Steel Ltd., owned by Fuzhou Julitaihe International Company of China, is currently developing a 500,000-ton-per-annum rebar plant in the Rashakai SEZ. The project was planned in three phases, with the initial phase focused on rebar production, the second on wire rod, and the final on profiles, aiming for a total production capacity of 1.5 mln tons annually upon completion.
