Chairman of the State Administration Council (SAC) Senior General Min Aung Hlaing said that plans are underway to resume Pinpet Steel Mill project which is a joint-ventured between Russian-backed Tyazhpromexport and Myanmar Economic Corporation (MEC).
The Pinpet Steel Mill project had been suspended in ex-parliament era led by National League for Democracy.
The SAC Chairman went to No.2 Steel Mill Project (Pinpet) operated by No.1 Heavy Industrial Enterprise under the Ministry of Industry near Pin Ngo Village of Pinpet region of Taunggyi Township, southern Shan State on October 1st.
He said that Pinpet project was the very first iron and steel project implemented in Myanmar and when completed, it would provide the local demand without importing. Moreover, the project can create job opportunities for locals and it was needed to carry out to be successful and it also has solid market potential. Although, the project completed 98.86 per cent, the operation was suspended due to irrational decisions made at the Pyidaungsu Hluttaw session held on March 6th and 15th in 2017 under the NLD government took office in 2015. So, it caused huge losses to the country, the current government now makes efforts to resume the project as it can bring benefits to the country.
He then added that it needs to prepare a proper transport system in advance for the electricity, natural gas and raw materials to start the project. In case of power outages, it is also necessary for the factories to take systematic measures to prevent power cutoff as the factories can face huge losses.
If the factory runs during a fixed period and produces steel, it can reduce the use of foreign currency. Moreover, it still needs to construct rail to run electric trains in transporting the mines and produced raw iron and steel and to make preparation not to occur power cuts.
The No (2) Steel Mill Project (Pinpet) was developed by Russian company Tyazhpromexport (TPE) and the Myanmar Economic Corporation (MEC) on 5 September 2006. The project was transferred to the Ministry of Industry on October 1st in 2012. The operation was suspended for four years and six months.
Currently, the officials plan to resume the project in the 2023-2024 financial year.
