Pakistan Oxygen Limited has planned to invest an amount of Rs. 2.5 billion as part of its expansion plans to set up an Air Separation Unit in KPK by the end of 2023.
According to the notification issued to Pakistan Stock Exchange (PSX), the board of directors has given a green signal to the management for setting up a state-of-the-art Air Separation Unit, which will be the 5th plant of the company.
The investment will cover the cost of plant and associated storage equipment, which will meet the growing demand for oxygen from healthcare and industrial segments besides the production of Nitrogen and Argon for the industries.
The company is presently meeting the demand for oxygen through trunking gases from the company’s plant located in the central region.
Pakistan Oxygen Limited
Pakistan Oxygen Limited is a leading supplier of industrial and medical gases, pipeline services, and welding solutions in the region since 1935.
According to the stock filing, the company has invested more than Rs. 10 billion in its operating plants. The largest project is under construction at the cost of Rs. 6.3 billion at the Port Qasim.
Further, the company also announced an investment plan of about Rs. 417 million to set up a new European technology electrode manufacturing facility at Karachi. This will enhance the company’s capacity and capability in the welding segment to meet the growing demand of the industrial sector.
The company has been operating its ASU plants round the clock in the country for the past two years to meet the growing demand for oxygen for the treatment of COVID-19 patients.
The company has also undertaken various healthcare initiatives in collaboration with public and private sector entities to create new patients beds with oxygen supply systems.
With the expansion of the proposed fifth ASU plant, the company’s customer base will widen while strengthening the company’s footprints to meet the growing demand of the healthcare and industrial segment.
The new plant will also be instrumental for the various upcoming projects under China Pakistan Economic Corridor (CPEC).