PSL to set up unit in W Asia

PSL Ltd, one of the largest pipe producers in the country, will set up its first fully owned international manufacturing unit by the end of this calendar year. The mill will be located in the West Asia, already a prime market for the company.

"Though we have helped other companies set up pipe mills overseas, this will be the first time we will be doing it for ourselves," said Ashok Punj, managing director.

With a capacity of one million tonne per annum, PSL manufactures and supplies spiral weld pipes for oil, gas and water transmission for onshore and offshore sectors.

As in the case of 11 mills of the 12 that the company operates in India, the new facility in the Middle East will also have a capacity of 75,000 tonne per annum.

"The construction cost will also be almost the same except for the higher labour and land rates in the region," added Punj. A 75,000-tonne pipe mill usually entails an investment of about Rs 20 crore. PSL's 12th and biggest facility, based in Kandla, has a capacity of 3,00,000 tonne per annum.

The West Asia facility will have a pipe mill and a coating plant. The equipment for the plant will be sourced from the company's manufacturing unit in Daman.

Among its other international operations, the Rs 1,500-crore company had earlier bagged a Rs 54 crore order from Kazakhistan's Ispat Karmet, a part of the Mittal Steel group, to set up a steel mill.