According to the recent stock filing, Engro Polymer & Chemicals revealed that its board of directors approved a capital expenditure of Rs 10.3 billion for addition of new PVC Plant and various other projects in its meeting held on 28 December, 2017.
The company plans addition of a new PVC plant having 100,000 MT (taking total capacity to 295,000 MT per annum) & VCM Plant debottlenecking of 50,000 MT per annum, with target completion in Q3 of 2020.
The capital expenditure is approximately Rs 7.6 billion, intended to be funded through issuance of right shares of approximately Rs 5.4 billion while the remaining Rs 2.2 billion will be debt funded.
Other capital expenditures include a new product line by adding Caustic Flaker of 20,000 MT per annum. CAPEX of the project is approximately Rs 0.34 billion with target completion in Q4 of 2018.
They also included Debottlenecking of Sodium Hypochlorite & Hydrochloric Acid Plants for local/export markets. CAPEX of the project is approximately Rs 0.15 billion with target completion in Q3 of 2018.
EPCL also approved membrane existing of current caustic soda plant to enhance efficiency and production. The capital expenditure for this project is estimated to be around Rs 0.6 billion, with a completion deadline of Q3 2018.
And Rs 0.22 billion will be expended for the upgradation of gas turbines to improve reliability and efficiency of its power plant with completion within 2018.
Capital Expenditure of approximately Rs 1.39 billion has been allocated for other efficiency and reliability projects which are expected to be completed within 2018, read the notification.
EPCL script at the PSX closed at Rs 30.06, down by -3.25% or Rs 1.01 with a turnover of 7.20 million.
Engro Polymer is a subsidiary of Engro Corporation, involved in the manufacturing, marketing and distribution of quality Chlor-Vinyl allied products and PVC under brand name ‘SABZ’.