Pakistani rebar manufacturer, Dost Steels Limited (DSL) has announced a strategic expansion of its business portfolio, moving beyond steel re-rolling to enter the trading and supply of construction materials, the company said in a stock exchange filing.
The company has initiated an arrangement under which it will act as a primary source of construction materials for ZKB, one of Pakistan’s largest infrastructure development groups.
The company said that the initiative would provide stable and recurring demand for the pipeline would allow DSL to participate directly in the supply chain of major nationwide infrastructure projects executed by ZKB.
DSL, with an annual rebar production capacity of 350,000 tons, has remained idle since 2019 due to financial difficulties. The company has recently secured a settlement agreement with its syndicate of banks, paving the way for financial and operational restructuring. DSL has also announced a 100pct rights issue to fund the company’s backward integration strategy, including the establishment of a melting plant aimed at improving efficiency and long-term profitability.
