KARACHI, May 2: The ICI Pakistan has said that the recently approved 65,000 tons Soda Ash Expansion Project comes on the back of 50,000 tons per annum expansion project inaugurated by the prime minister in March.

“The latest project will increase total nameplate capacity of ICI Pakistan’s Soda Ash Plant to 350,000 tons per annum,” a press release issued by the company on Wednesday stated.

The press release said the company had hosted a meeting on Wednesday between the company’s senior management and financial analysts from a number of leading brokerage houses and trust companies listed on the KSE.

The company observed that the meeting provided an opportunity to brief analysts and media on ICI Pakistan’s 65,000 tons Soda Ash Expansion Project.

Waqar A Malik, chief executive of ICI Pakistan told the gathering: “The expansion project is expected to be completed by mid-2009 at a cost of Rs1.4 billion, with the entire funding coming from ICI Pakistan’s internal cash generation.” The CEO stated that the expansion was an assertion of ICI Pakistan’s belief in the growing market for soda ash in the country which continues to provide further opportunities for investment in capacity expansion.

The CEO said since 1980 the group had invested over Rs40bn in expansion and new technologies.

The briefing also highlighted further investment of Rs600 million in a co-generation project undertaken by ICI Pakistan’s wholly owned subsidiary ICI Pakistan PowerGen, at Sheikhupura.

“This project would improve fuel efficiency; reduce costs and support ICI’s polyester staple fibre plant’s power requirement,” the company stated and added it was in addition to the already completed asset modernisation and improvement project at a cost of Rs968 million undertaken by the company in 2006.

The press note stated that John McAdam, chief executive of ICI Plc, had visited Pakistan in March for inauguration of the expansion project and had assured the president and the prime minister of the group’s continued commitment towards economic development of Pakistan as structural reforms and consistency of economic policies, made the country one of the most viable countries for investment.

“ICI’s growth in Pakistan, considered being one of the best performing subsidiaries of ICI Plc,” the Group CEO was quoted to have said.

The press release also stated that analysts were told that ICI’s soda ash plant had consistently gone through a number of modernisation and expansion works, with projects worth Rs555 million and over Rs1 billion completed in 2002 and 2007 respectively.