Engro Polymer and Chemicals has announced plan to invest $23 million in order to enter the hydrogen-peroxide business. According to Elixir Securities, the total domestic demand for hydrogen peroxide stands at 55,000-60,000 metric tons.
Although, Descon Oxygen Limited and Sitara Peroxide have an installed capacity of 30,000 metric tons each, the local production does not completely satisfy the demand, due to which around 10% to 15% of hydrogen peroxide is imported.
In a notification sent to the Pakistan Stock Exchange (PSX), Engro Polymer and Chemicals said its board of directors announced to enter Hydrogen Per Oxide business through a greenfield manufacturing facility with a CAPEX of $23 million.
The project will be funded through internal cash generation.”
Furthermore, it said “Engro Polymer & Chemicals Limited derives hydrogen as part of its caustic manufacturing process. Currently, hydrogen is largely being used as fuel which is not the best value creation for hydrogen.
Engro Polymer & Chemicals Limited (EPCL) is the only fully integrated Chlor-Vinyl chemical complex in Pakistan. It is a subsidiary of Engro Corporation, involved in the manufacturing, marketing and distribution of quality Chlor-Vinyl allied products and PVC under the brand name ‘SABZ’.
EPCL shares were trading at Rs33.31, up Rs0.18. KSE-100 index was trading at 40,890.78 points, down 375.61 points (-0.91 percent) at the time of filing this report.