November 26, 2019: The Board of Directors of Engro Polymer and Chemicals Limited in its meeting held on November 26, 2019, has approved CAPEX of approximately $22 million.
According to a notification issued to Pakistan Stock Exchange, the company shall undertake two projects, with one entailing a new product line by adding Linear Alkyl Benzene Sulphonic Acid (LABSA) with an annual capacity of 24,000 MT. CAPEX of this project is approximately $6 million with target completion in 4Q 2021
The other project will pertain to the usage of High-Temperature Direct Chlorination, which is a heat recovery patented technology that increases power efficiency and reduces carbon footprint. The project is expected to decrease gas consumption of PVC manufacturing by ~10%. CAPEX of the project is approximately $16 million with target completion in 4Q 2021.
These projects will be funded through internally generated cash.
To recall, the company had posted net earnings of Rs. 2.8 billion for the nine months ended on September 30, 2019, which signified a decline of 27% over the same period of last year.
