KARACHI – In a major step toward boosting domestic steel production and reducing reliance on imports, Agha Steel Industries has signed a strategic memorandum of understanding (MoU) with Horizon Steel to supply 100,000 metric tons of low-carbon billets annually. The deal, valued at approximately Rs 10 billion per year, marks a significant milestone for the Steel sector in Pakistan.
Under the agreement, Agha Steel will serve as a reliable local source for low-carbon billets—an essential raw material in the wire rod manufacturing industry. This partnership is expected to revolutionize the downstream Steel market by enabling import substitution on a large scale.
“For the first time in Pakistan, low-carbon billets are being produced locally,” said Suleman Lakhani, Chief Marketing Officer of Agha Steel. “Thanks to innovation and consistent investment in R&D, Agha has introduced a product that previously had to be imported, allowing the downstream industry to depend on domestic supply.”
These billets are manufactured using the latest European electric arc furnace (EAF) technology, setting Agha Steel apart from traditional players that use outdated induction furnace methods. With their advanced production capabilities, Agha is not only enhancing product quality but also ensuring environmental sustainability and energy efficiency.
The company recently ramped up its billet production capacity from 250,000 metric tons to 450,000 metric tons per year. This increased capacity supports its expansion strategy and aligns with its upcoming public listing to further fuel growth.
“With the execution of this MoU, our sales are projected to grow by 68% within the next year,” Lakhani added. “We anticipate more such collaborations as the local Steel industry evolves and strengthens.”
Horizon Steel CEO Shoaib Sultan welcomed the agreement, emphasizing its broader economic impact. “It’s encouraging to see Pakistan’s Steel ecosystem develop to the point where we can achieve end-to-end production locally. This will catalyze growth across the entire downstream sector,” he stated.
As Agha Steel leads the way in innovation and strategic partnerships, the future of Pakistan’s steel industry looks stronger, more self-reliant, and primed for global competitiveness.