Treasure Magazine

Treasure Magazine

Engro Corporation approves $31.4m for polypropylene plant study

2 min read
Engro
Plant is almost a billion-dollar project. If you take its capacity to be about 1mn tonne, then it is about $1.5-1.75 billion project. So, this is a very significant project for the company

KARACHI: The Engro Corporation, one of the largest cash-rich conglomerates, has approved an amount of up to $31.4 million for the engineering, designing and technical study for petrochemical business in Pakistan.

Engro Corporation was planning for the petrochemical business in Pakistan for last many years and now its Board of Directors in a meeting held on April 8 2021 has approved this amount for conducting engineering, design and technical studies including a Front End Engineering Design study in relation to the PHD-PP Project.

Through a notice at PSX, the company said, “We are pleased to announce that the Board has approved an amount of up to $31,400,000 or the equivalent in PKR, towards conducting engineering, design and technical studies including a Front End Engineering Design (FEED) study in relation to the PDH-PP Project. The results of these studies, when completed, are expected to inform the final investment decision in relation to this project, which decision will also be based on a conducive policy environment and arranging the right mix of debt and equity partners at such time.”

Engro corporation has the desire to be largest exporters in next few years and in order to realise this dream, the corporation is not targeting the conventional textile sector but the petrochemical industry. Engro is looking to build a large polypropylene plant based on propane dehydrogenation technology at Port Qasim, the industry sources said.

This is a billion-dollar project that aims to capitalise on the huge demand existing in China. At the same time, the planned project will help substitute polymer imports of 0.45 million tonnes at home, worth about $200-250 million.

The plant is almost a billion-dollar project. If you take its capacity to be about 1mn tonne, then it is about $1.5-1.75 billion project. So, this is a very significant project for the company.”