Engro Polymer signs contract with Chinese firm for manufacturing facility with 100,000 MT capacity

Engro Polymer and Chemicals has signed a contract with Tianchen Corp China (TCC) for an integrated manufacturing facility, with an annual capacity of 100,000 MT per year.

The company had been raising funds via right issue of shares for capacity expansion of PVC, for which the contract has been signed.

In December 2017, the company notified PSX regarding its intention for capital expansion of approximately Rs.10.3 billion. 

As per the comapny's plan for CAPEX, addition of new PVC Plant of 100,000 MT (taking total capacity of 295,000 MT per annum) & VCM Plant debottlenecking of 50,000 MT per annum, is expected to be completed by the third quarter of 2010.

The notification issued in December also revealed that the CAPEX is worth approximately Rs.7.6 billion, of which Rs.5.4 billion was intended to be funded through issuance of right shares, whereas the remaining Rs.2.2 billion was to be raised through debt.

Other than this, other CAPEX of Rs.2.7 billion is to be funded through internally generated cash and debt.

PSX notification