Pakistan Industries Updates

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Pak Elektron Limited

Pak Elektron Limited (PSX: PAEL) was incorporated in Pakistan as a public limited company in 1956.
The company is engaged in the manufacturing and sale of domestic appliances and electrical capital goods. The company organizes itself in two divisions – power and appliances. The company was acquired by Saigol Group of Companies in 1978.
The company has formed several alliances over the years with renowned international companies including Hitachi, Fujitsu and General Electric.
The topline growth came on the heels of a tremendous growth in the sale of water dispensers, energy meters, switch gears, power and distribution transformers, washing machine, AC and microwave oven.

 

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The Privatization Commission of Pakistan on Tuesday completed the privatization process of Heavy Electrical Complex (HEC) by handing over the share certificates to the buyer M/s IMS Engineering (Pvt) Limited.

In a final settlement of Rs1.4 billion transaction, the buyer IMS Engineering has not only made full payment but has also taken over additional liabilities of Rs 752 million payable to the Bank of Khyber. The Bank of Khyber issued an NOC for the conclusion of the transaction.

 

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FCCL commissions Greenfield Cement Manufacturing Plant in Punjab​

BR

Fauji Cement Company Limited (FCCL), one of the largest cement manufacturers in Pakistan, has successfully commissioned its Greenfield Cement Manufacturing Plant in Dera Ghazi Khan, Punjab.

The company, which manufactures and sells various kinds of cement, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“We are pleased to inform that FCCL has successfully commissioned its Greenfield Cement Manufacturing Plant on 30 November 2023, having a production capacity of 6,500 tons per day of clinker at Shadan Lund, district Dera Ghazi Khan,” read the notice.

FFCL shared that with the commencement of operation of the new line, the total cement production capacity of the company has increased to 10.6 million tons per annum and establishes Fauji Cement Company’s position as the 3rd largest cement producer in the country.

“The Greenfield Project has been completed within a record time of 13 months,” it added.

FCCL shared that the project includes state-of-the-art manufacturing equipment and also includes emissions control features and a Waste Heat Recovery Power Plant.

“The addition of this Greenfield Cement Plant at an extremely impoverished area of Shadan Lund in Southern Punjab will not only provide a livelihood to the locals but will also help in major uplift of the area,” FCCL said.

Fauji Cement further informed that well before the commissioning of the plant, the company initiated major CSR projects like providing clean drinking water, healthcare and solar systems to the local community.

Established under the Companies Ordinance, 1984 in 1992, FCCL initiated operations in the following year in 1993. The company caters to both, the local market as well as the global market. Some of its export destinations are Sri Lanka, South Africa, the Middle East, etc

 

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National Foods Ltd is setting up its fifth plant in the M4 Industrial City of Faisalabad, said a company official on Tuesday.

Briefing a group of journalists at the Port Qasim factory of the manufacturer of convenience-based food products, the official said the 30-acre Faisalabad plant will be the company’s biggest production facility upon its completion by the end of 2022.

Currently, the company operates three plants in Karachi’s Port Qasim, SITE and Nooriabad industrial estates and one plant in Gujranwala. He didn’t share the size of the investment.

The company posted an unconsolidated profit of Rs725 million for January-March, up 39.3 per cent from a year ago. Its quarterly sales grew 23.4pc to Rs8.4 billion.

Even though the company is one of the major Pakistani exporters of recipe mixes, a sharp devaluation of the local currency against the dollar in recent quarters has left a negative impact on the earnings growth, the official said

 

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SLM Tyres reaching first-phase production​

ISLAMABAD, Jul. 27 (Gwadar Pro)-Servis Long March (SLM) Tyres has reached a milestone of manufacturing more than 2,000 tyres per day at its Nooriabad plant in Sindh Industrial and Trade Estate (SITE), Karachi.

It marks the completion of the first-phase production capacity of 740,000 tyres per annum, Gwadar Pro learned recently.

SLM Tyres is a $300 million joint venture between Pakistan’s Servis Group and China’s Chaoyang Long March Co. Ltd. It’s the first All-Steel Radial Truck and Bus Tyres manufacturing facility in Pakistan with complete transfer of technology right from the commencement of commercial production, according to the Servis Group. The JV started commercial production in March 2022.

Servis Group owns 51% shares in the JV while Chaoyang Long March Co. Ltd. owns a 44% stake.

The targeted production capacity of SLM Tyres is 2.4 million tyres per annum in three phases. Annual tyre production is expected to rise from 0.74 million in the first phase to 1.2 million in the second phase and 2.4 million in the third phase.

According to the Servis Group, the project will contribute Rs. 23 billion to the national exchequer by way of customs duty, sales tax and income tax during its initial 10 years of commercial operations.

SLM tyres are being exported to the US, with the next areas of focus being the European Union and Brazil. Yearly exports are expected around $70 million in the first year of commercial operations, which will gradually increase to $300 million, Servis said.

 

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Fauji Fertilizer Company Limited (FFC) has announced its half-yearly financial results for the period ended June 30, 2022, in its Board of Directors’ meeting held on July 28, 2022.

FFC attained Urea production of 1,276 thousand tones, 4% higher than last year mainly because of the deferment of plant turnaround to H2. The company also achieved a benchmark sona urea offtake of 1,275 thousand tones for the period. Increased urea sales combined with higher prices of imported fertilizers also led to the highest ever all-product revenue of Rs54.71 billion during the period.

 

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On cigarettes output​

BR Research

The country’s cigarette output has been gradually picking up this year, but it may not be enough to offset the impact from the challenging operating environment and higher taxes and duties. Based on latest data from Pakistan Bureau of Statistics (PBS), the cigarette production (in the formal industry) stood at 29.15 billion sticks in the Jan-Jun period of 2022, showing growth of 10 percent year-on-year. The growth trend has continued since CY21, when annual output had hit 57 billion sticks, rising by 16 percent year-on-year.

Based on the PBS data, the average cigarette production in the latest half-yearly period stood at 4.86 billion sticks per month, which is higher than 4.4 billion sticks per month seen in 1HCY21. Output is slowly reaching closer to the previous peak of 5.1 billion sticks per month produced on average during CY18. On a monthly basis, the highest monthly production was recorded at 6.27 billion sticks back in April 2018.

The 10 percent output growth in the cigarette manufacturing industry during 1HCY22 is reflected in the financials of the top two tobacco companies, where volumetric growth has been visible. For instance, at Philip Morris (Pakistan) Limited (PSX: PMPK), the net turnover grew by 10 percent year-on-year to reach Rs10.16 billion. And at Pakistan Tobacco Company Limited (PSX: PAKT), the net turnover grew by a bigger 21 percent year-on-year.

While the topline growth helped propel the operating profitability of both firms by double-digits in the analysis period, the duo’s bottomline /net profits still underwent double-digit contraction. For PAKT, net profits reduced by 10 percent year-on-year to Rs8.51 billion, and at PMPK, the net profits went down by 11 percent year-on-year to Rs1.53 billion. This decline could be attributed to proportionally much higher booking of income-tax expense during 1HCY22.Recall the federal government had levied a 10 percent ‘super tax’ on a number of industries, including tobaccos, in June 2022.

Going forward, the cigarette output may come under pressure. Recall that the latest federal budget had also raised the FED on cigarettes. This may render cigarette output in the formal industry more expensive than the informal sector alternatives that are cheaper due to evading taxes and duties.

The cheaper, non-duty-paid cigarettes are cited by PAKT and PMPK as a major challenge to the viability of the formal sector as well as government’s tax revenues. Let’s see how things unfold in the second half of the year.

 

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These huge machines are equipped with most advanced technology incorporated in any such equipment in Pakistan for the first time.

The state of the art Rescue Aerial Platform shall be used to encounter incidents like Hafeez center and related. The 3 in 1 machine. Manufactured in Pakistan by Javaid industrial company, which is a leading manufacturers of Aerial Platforms in Pakistan.

 

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Pakistan’s only can-maker to enhance production capacity by 26%​

• Earlier this year, company increased production capacity from 700mn cans to 950mn cans per annum

BR
October 28, 2022

Pakistan Aluminium Beverage Cans Limited (PABC), the only aluminium can-maker in the country, aims to enhance its production capacity by over 26%, the company said in a notice sent to the Pakistan Stock Exchange (PSX) on Friday.

The company said its Board of Directors, during a meeting held on October 26, "approved capital project with the objective to enhance rated production capacity to 1,200 million cans per annum (p.a.) (currently 950 million cans) and also to eliminate bottlenecks in existing capacities and equalize capacities of all processes.”

PABC said that the project is expected to commence commercial operations by July 2023.

Back in August, the can-maker successfully commenced the project for the enhancement of production capacity, under which the rated production capacity was increased from 700 million cans p.a. to 950 million cans p.a.

As per the company’s latest financials, PABC’s net sales increased by Rs5.10 billion to reach Rs10.85 billion, during the nine months ended September 30, 2022, recording a growth of 88.79% in comparison with the corresponding period last year.

 

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Bestway Cement expands production capacity with completion of Hattar Plant Line​

BR

Bestway Cement Limited (BWCL), one of Pakistan’s leading cement manufacturers, said the construction and installation of a brownfield line at its Hattar Plant is now complete..

The company shared the development in a notification to Pakistan Stock Exchange (PSX) on Friday.

“We are pleased to inform you that Bestway Cement Limited has completed the construction and installation of a brownfield line at its Hattar Plant.

“Hattar Line-Il has a clinker capacity of 7,200 tonnes per day. The new production line has commenced cement production on 17th February 2023,” read the notice.

BWCL is a subsidiary of Bestway International Holdings Limited (BIHL), which holds 56.43% shares in the Company. BIHL is a wholly owned subsidiary of Bestway Group Limited (BGL), a British multinational conglomerate company.

Last year in October, BWCL commissioned a fifth plant site in Mianwali in Khyber Pakhtunkhwa, which increase its annual production capacity to 12.9 million tonnes.

The company was the first cement operator to install Waste Heat Recovery Power Plants at all of its sites. It has also recently commissioned the installation of Solar Power Plants at all of its operation sites. The implementation of these solutions has enabled it to generate its own energy and as a result reduce its carbon footprint.

 

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Tyres industry in Pakistan.

ISLAMABAD: Prime Minister Shehbaz Sharif has assured to extend every possible facilitation to the Chinese investors for investment in Pakistan.

He made the remarks while talking to a delegation of Service Long March Tyres and Chaoyang Long March Tyres led by Chairman Li Qingwen in Islamabad.

Shehbaz Sharif said China has also supported Pakistan in difficult times. He said China is a lonstanding friend of Pakistan.

The Prime Minister directed the relevant quarters to extend maximum facilitation to the Chinese investors for improvement of Tyres industry in Pakistan.

Shehbaz Sharif welcomed the Chinese investment through a joint venture with a prominent Pakistani Tyres company.

The Prime Minister was informed that the Tyres being manufactured in Pakistan at a plant established through the Chinese investment are being sold in international markets. It was informed that the production of tyres would be increased to take annual exports to two hundred million dollars.


from old PDF

 

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Experts highlight true export potential of PVC products​

Recorder

KARACHI: Significant investments to expand and improve the efficiency of domestic PVC production have created an opportunity for Pakistan to earn $300 million through the export of surplus volumes and products.

Currently, Pakistan’s per capita PVC consumption stands at 1.2 kg versus a global average of 6.1 kg. Growth in the country’s per capita consumption will be driven by rising per capita income, increasing urbanization, and robust domestic manufacturing in the coming years, experts said.

Through various customer engagement and market development initiatives, such as a retail outlet – think PVC, Engro Polymer and Chemicals Limited (EPCL) is actively promoting various standardized, high-quality PVC products.

While briefing reporters on Wednesday, Mahmood Siddiqui, Vice President Manufacturing of EPCL highlighted that since 2015, EPCL has invested over $188 million in plant expansion and other upgrade projects for higher efficiency, reliability, and diversification of operations.

In 2021, EPCL enhanced its PVC capacity to 295,000 tons per annum, which is sufficient to fully cater to the local demand and achieve exports, as well.

Muhammad Idrees, Chief Commercial Officer at EPCL, said that the Company is collaborating with TDAP to explore global markets for export of value-added PVC downstream products.

In the last two years, the Company exported surplus products worth $48 million to Turkiye and Middle Eastern markets, while import substitution of around $300 million contributed significantly toward solving Pakistan’s balance of payments situation.

The downstream PVC industry can fully utilize its excess capacity and help in earning $300 million in valuable foreign exchange by standardizing and improving the quality of finished products.

The Company’s 2030 vision is to become a globally-competitive PVC producer, prioritizing exports, and increasing the domestic per capita PVC consumption to international levels. As part of its business strategy, the Company is also looking to position PVC as the “Material of Choice” with a primary emphasis on value added products.

Experts highlight true export potential of PVC products​

KARACHI: Significant investments to expand and improve the efficiency of domestic PVC production have created an...
www.brecorder.com

 

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China to help Pakistan develop chemical industry​

By Saira Iqbal
June 28, 2023

KARACHI - "We hope to set up chemical factories collaborating with China under the China-Pakistan Economic Corridor (CPEC). China has modern technology, and we can improve our chemical sector with it. Improved industry can generate employment as well, "said Sheikh Muhammad Nadeem, chairman of Pakistan Chemical Dyes Merchants Association(PCDMA).

Earlier this month, Chinese Consul General (CG) in Karachi, Yang Yundong, attended the tea party of PCDMA and delivered a speech. Yang appreciated the association's contribution to Pak-China cooperation and highlighted the fruitful results of CPEC programs. "Over the past decade, CPEC has laid a solid foundation for Pakistan's economic and social development. In the next step, the two countries will broaden the scope of cooperation and continuously enhance cooperation in industry, agriculture, culture, science and technology."

Yang also encouraged the association to seize the opportunity to strengthen its connection with relevant Chinese industries, and the Consulate General will maintain close exchanges with Pakistani business communities to boost bilateral trade and promote the development of relevant industries.

"In Pakistan, the development of chemical industry has not received enough support. People set up the industry on their own. There are no proper labs. Private labs are there, but they are costly. Therefore the cost of making products is expensive. That's why we want to build connections with Chinese chemical companies." Sheikh Muhammad Nadeem said. He also expressed gratitude to the Chinese Consulate General in Karachi for its strong support to Pak-China economic cooperation.

"We hope that the interactions between enterprises of the two countries will be strengthened in the post-epidemic era to further promote the development of the industry." He said.

 

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Ghani Chemical looks to establish Pakistan’s ‘largest ASU plant’ in Khyber Pakhtunkhwa​

BR

Ghani Chemical Industries Limited (GCIL) is in process to set up Pakistan’s largest Air Separation Unit (ASU) plant in Hattar Special Economic Zone, located in District Haripur, Khyber Pakhtunkhwa.

GCIL, engaged in the manufacturing, sale and trading of medical, industrial gases and chemicals, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“The company is actively in the process to set up Pakistan’s largest and the company’s fifth 275 tons per day (TPD) ASU plant for manufacturing of medical and industrial gases at Hattar Special Economic Zone,” read the notice.

Sharing updates, GCIL informed that it has imported plant and machinery for the project, which “have arrived, unloaded and custom cleared”.

Apart from the ASU plant, the company is also in the process for establishing a calcium carbide manufacturing project at Hattar Special Economic Zone, GCIL shared.

“Hopefully this project will save millions of USD and shall also open the doors for earning foreign exchange for the country,” the company said.

Calcium carbide, also known as calcium acetylide, is a chemical compound used in the production of polyvinyl chloride (PVC).

“Both the above projects are planned to be in operation during the first quarter of calendar year 2024,” said GCIL.

Last year, the Khyber Pakhtunkhwa government’s Environmental Protection Agency accorded approval to GCIL to set up a calcium carbide plant at Hattar Economic Zone.

The company back then also shared that it had secured LCs (Letters of Credit) and approval from KPK’s Environmental Protection Agency for the setup of ASU plant at Hattar Economic Zone.
Last month, the Board of Directors of GCIL decided to set up a multi-million dollar coal power plant.

“To overcome the high utility prices issue (being the only raw material for manufacturing of medical and industrial gases), it has been decided to set up a 7MW coal power plant based on a mix of local and imported coal at Port Qasim and/or any other nearby suitable location at a projected cost of $5-5.5 million,” the company said in a notice to the bourse back then.

The company said that the plant is expected to save 45% to 50% power cost of its Air Separation Unit (ASU) plants installed at Port Qasim in Karachi.

 

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Atlas Battery Limited​

BR Research
January 5, 2024


Atlas Battery Limited was incorporated in Pakistan as a public limited company in 1966. The company manufactures and sells automotive, motorcycle batteries and energy storage batteries and allied products. Shirazi Investments (Private) Limited is the holding company of ATBA holding 58.86 percent of its shares.

The company has signed a technical collaboration with Japan Storage Battery Co. Limited for the production and sale of Japanese batteries in Pakistan.

ATBA also boasts itself to be the first battery manufacturer to launch branded distilled water and hybrid battery.