Sapphire Fibres expands into power sector with UAE, Netherlands agreements

By Our Correspondent
July 16, 2024
A general view of the high voltage lines during a nationwide power outage in Rawalpindi on January 23, 2023. — AFP
A general view of the high voltage lines during a nationwide power outage in Rawalpindi on January 23, 2023. — AFP

KARACHI: Sapphire Fibres Limited (SFL), a prominent textile manufacturer in Pakistan, has announced significant expansions into the power sector through strategic agreements with companies based in the UAE and Netherlands.

In a notification to the Pakistan Stock Exchange (PSX) on Monday, SFL disclosed that it has entered into key agreements aimed at acquiring substantial stakes in two gas-based power plants located in Dera Murad Jamali, Balochistan. According to the notice, SFL has partnered with UPLHC I Limited and UPLHC II Limited, both entities incorporated in the United Arab Emirates, to acquire 50 per cent shares of UCH Power (Private) Limited. This acquisition is set to enhance SFL’s presence in the energy sector.

Simultaneously, SFL’s consortium partner has inked a similar agreement to acquire the remaining 50 per cent shares of UCH Power (Private) Limited, the notice further stated.UCH Power (Private) Limited operates a 586MW gas-based power plant in Dera Murad Jamali, Balochistan, contributing significantly to the region’s energy supply.

Additionally, SFL has forged another agreement with International Power UCH Holdings BV, a company based in the Netherlands, to acquire 50 per cent shares of UCH-II Power (Private) Limited. This strategic move is part of SFL’s broader diversification strategy into the power generation sector.Similar to the first agreement, SFL’s consortium partner has committed to acquiring the remaining 50 per cent shares of UCH-II Power (Private) Limited, which operates a 404MW gas-based power plant in Dera Murad Jamali, Balochistan.

SFL emphasized in its notice that the completion of these transactions is contingent upon meeting specified conditions and obtaining necessary regulatory approvals. Sapphire Fibres Limited, a subsidiary of the renowned Sapphire Group, currently operates three production plants in Pakistan, specializing in yarn, fabric, and garment manufacturing. Two of its facilities are located in Sheikhupura, with another in Lahore.