Ittehad Chemicals has successfully started commercial operations on its new plant after replacing its high power consuming Caustic Soda Plant (IEM-1) with the new Ion Exchange Membrane Plant 3 (having capacity 37,500 million tons per annum).
In a notice filed on the exchange, Ittehad Chemicals Limited (ICL) today announced that it has successfully completed the installation of its “state of the art power efficient Ion Exchange Membrane Plant 3.”
The company further informed the exchange that, “the new IEM Plant 3 is cost efficient and shall make its contribution towards company profitability. The inclusion of new IEM Plant 3 in company’s operations testifies the Management’s commitment to enhance its shareholders’ value.”
The total cost of the project was estimated at Rs. 1,014 million. The company in order to finance the project of replacing the costly plant had issued 18.642 percent Right Shares raising Rs. 300 million and the additional Rs. 714 million were financed through project financing.
According to the fourth quarterly progress report issued on April 20th, the company had spent Rs. 988.562 million on acquiring Building (Rs. 55.913 million) and Plant & Machinery (Rs. 932.648 million).
The company on 11th December, 2017 also informed that it had also entered “into an agreement for installation of Linear Alkyl Benzene Sulphonic Plant (LABSA) having a capacity of 24,000 million tons per annum and Sodium Sulphate Plant having a capacity 3,000 million tons per annum.”
The company with the installation of new plants aim to decrease its dependence on imports and is looking to become self-sufficient in both categories.
According to the official notice released on the exchange, the cost of both projects is expected to be at Rs. 450 million.