ICI Pakistan to spend $90mln onl ight soda ash plant in Khewra

KARACHI: ICI Pakistan Limited on Thursday says it’s going ahead with a $90 million plan to expand its light soda ash plant in Khewra.
The company, which posted full-year net profit of Rs2.276 billion, up 24 percent, for the fiscal 2015, said the phased capacity expansion will add up another 150,000 tons/annum of light soda ash at its existing 350,000 Khewra plant.
The earnings per share clocked in at Rs24.65, and the company also declared a final cash dividend of Rs6.50/share, which is in addition to Rs5.0 already paid to the shareholders.
“The planned expansion will be implemented in two phases. The first phase of the project is expected to be commissioned by the end of 2017,” Saima Kamila Khan, an ICI official, said.
The total installed capacity of the light soda ash will increase to 500,000 tons/annum on plant completion.
ICI’s net turnover for FY15 stood at Rs42.593 billion as against Rs42.698 billion last year. “This is primarily attributable to lower revenues in the polyester business, which declined 16 percent in line with a downward correction of prices across the petrochemical chain,” Khan said.
“Net sales income in the soda ash business grew by 13 percent on account of higher volumes and prices, while the life sciences business recorded a 17 percent growth in sales income. Chemical business was almost at par with last year.”
The company completed the furnace oil and natural gas replacement projects at polyester and soda ash sections, thereby reducing operational reliance on expensive fuels, considerably easing the energy cost pressure. Low furnace oil and coal prices also contributed towards improved profitability.