The Board of Directors of Pakistan Oxygen Limited (PAKOXY) have formally approved an investment plan of approximately Rs. 5.1 billion to set-up the latest and most efficient Air Separation Unit (ASU) in Pakistan.
Pakistan Oxygen, which is a leading supplier of industrial & medical gases, pipeline services and welding solutions in Pakistan, approved this investment plan in the meeting which held on March 18, 2019.
Last year, the company notified the PSX about an investment plan of about Rs. 4.4 billion to set-up the largest air separation plant in Pakistan, which will be capable of producing up to 250 tons per day of Air Separation Unit (ASU) products.
According to the notification to PSX, the increase in project size is primarily on account of rupee depreciation and an increase in interest rates. This new expansion shall be the largest ever in the Air Separation Unit (ASU) history in Pakistan and shall increase the ASU gases manufacturing capacity of the company by approximately 95 percent.
The plant is expected to come on stream in the fourth quarter of 2021.
Furthermore, the notification read that this investment is a reflection of the confidence of the new sponsors in the country’s economy and the potential for growth in the various industrial segments serviced by the company.
Pakistan Oxygen Limited (formerly Linde Pakistan Limited) is a leading supplier of industrial & medical gases, pipeline services and welding solutions in Pakistan since 1935.
The company serves customers across a wide spectrum of industries ranging from chemical and petrochemical to steel, food and healthcare.
At the time of filing this report, PAKOXY’s script at the bourse was trading at Rs 225.75, up by 5% or Rs. 10.75 with a turnover of 400 shares on Tuesday.