SSGC has clarified a news item headlined ‘SSGC buying meter parts from China despite availability in country’ that appeared in The Nation on January 20, 2014. SSGC has strongly denied the contents of the news and clarified the factual position in this regard.

At the outset, it must be clarified that SSGC’s own meter manufacturing plant has been manufacturing G-4 gas meters under license from Itron, France since 1992. Itron was previously called Schlumberger and later Actaris France.

At SSGC, the G-4 gas meters are assembled with 37 components which require wide array of technologies. In order to obtain components of the assorted nature, these parts are outsourced by local pre-qualified vendors besides being manufactured in-house with the available facilities. SSGC, therefore, categorically denied that none of the Chinese component is used at meter manufacturing plant for assembling the G-4 gas meters.

However, out of 37 components of G-4 gas meters, only one component, the measuring unit” cannot be indigenized for three primary reasons. One, a very high initial investment is involved which is not viable for SSGC’s current production volumes of G-4 meters. Second, manufacturing capabilities of some internal parts of measuring unit such as diaphragm are not available in Pakistan. Third, sensitive nature of measuring unit requires multiple quality maintenance measures which are difficult to maintain in Pakistan’s mass production environment. Keeping in view the aforementioned facts, currently the measuring units for G-4 gas meters are being imported from trans Italy Plant.