PACRA Maintains the Entity Ratings of Usman Steels (Private) Limited - Press Release issued by The Pakistan Credit Rating Agency Limited.

Lahore -- January 23, 2023 (PPI-OT)

Following is the text of press release issued by The Pakistan Credit Rating Agency Limited (PACRA)

Quote

Incorporated in April 1978, Usman Steels (Pvt.) Limited is engaged in the business of ship breaking. The Company's site spread over four ship breaking yards, all around costal line of Gaddani Beach, District Lasbella, Balochistan. Usman Steels purchases ships directly from ship owners or through Ship brokers for recycling, to retrieve multipurpose ship steel plates and steel scrap to fulfill rapidly increasing steel raw material demand in domestic market. The South-Asian ship-breaking industry, including India, Bangladesh, Pakistan and Turkey, are countries where majority of the ship-breaking activity has been happening.

Among all, Pakistan ship-breaking yards hold advantages of having favourable geography and weather, cheap manpower making it preferred destination for ship-breaking activities. The ratings are largely supported by the long-standing experience of the group in diversified sectors and company's sponsor's, who have nearly three decades of experience in the ship breaking business. The Company's operations and profitability are highly exposed to the fluctuations in ship prices along with exchange rates and are dependent on prevailing scrap prices, which could result in poor realizations, irrespective of the availability of improved quality of vessels in the market.

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