April 06, 2007	Friday	Rabi-ul-Awwal 17, 1428

KARACHI, April 5: Fertiliser companies are pursuing plans to expand capacity in order to benefit from higher urea demand. FFC is currently conducting de-bottlenecking of its existing plant III (situated at Mirpur Mathelo), which, analyst estimate would add between 60,000 to 75,000 tons to its total urea capacity. Analysts’ reports suggest that the exercise would be completed by the end of 2007.

Unit 3 Mirpur Mathelo contributes 574,000 tons, representing 30 per cent to the capacity. Estimated cost of the project amounts to somewhere around Rs2bn. With the completion of this expansion, total capacity of the company would increase to 1,964,000 tons.

Industry sources also say that study report for the BMR of Plant I and II at Goth Machi was being prepared. Unit 1 at Goth Machi was contributing 37 per cent and Unit II was making 32 per cent contribution to the total capacity.

On April 19, a meeting of Board of directors of Fauji Fertilizer Bin Qasim (FFBL) is scheduled to be held, when the accounts for first quarter ended March 31, 2007 would be announced.

FFBL is the only DAP manufacturer in the country. Since Fauji Fertiliser holds majority stake of 51 per cent in FFBL, it would not be out of place for the Board to inform investors about the status of ongoing de-bottlenecking of units at FFC.