Engro Polymer & Chemicals has announced that it had signed a contract with Tianchen Corp China (TCC) for an integrated manufacturing facility with an annual capacity of 100,000 MT per annum for capacity expansion of its PVC plant.

In continuation of the disclosure provided by Engro Polymer and Chemicals on December 28, 2017, where the company had announced approval of a capacity expansion of PVC production.

Back in December, Engro Polymer & Chemicals revealed that its board of directors approved a capital expenditure of Rs 10.3 billion for the addition of a new PVC Plant and various other projects.

The company planned an 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 was approximately Rs 7.6 billion, which was to be funded through the issuance of right shares of approximately Rs 5.4 billion while the remaining Rs 2.2 billion was to 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.

EPCL had also approved soda plant upgradation. The capital expenditure for this project was estimated to be around Rs 0.6 billion, with a completion deadline of Q3 2018.

It 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 script at the PSX was trading at Rs 34.90, up by Rs 0.64 or +1.87% with a turnover of 8.15 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’.