Prime Minister Imran Khan has inaugurated Engro Polymer & Chemicals (EPCL), a subsidiary of Engro Corporationnew ,’s 100,000-ton PVC III Plant, which would enable import substitution of PVC and enhance exports.
EPCL, founded in 1997 as a joint venture between Mitsubishi and Asahi Glass, is Pakistan’s only fully integrated chlorvinyl chemical complex and PVC maker. Since 2015, the Company has spent more than $188 million on plant expansion and other upgrades to improve efficiency, dependability, and diversity of activities. The International Finance Corporation (IFC) provided up to $50 million in finance for the Plant expansion, which drew on global project execution skills from a Japanese licensor and a Chinese construction team.
With the addition of new capacity, EPCL can now produce 295,000 tons of PVC per annum to fully cater to the surging local demand, owing to the Government’s favorable construction sector policies, and achieve exports as well. Through enhanced local production, EPCL will now be contributing around $ 240 million towards import substitution, while the Company has exported PVC resin worth $ 25 million to Turkey and the Middle East markets in 2021.
According to Ghias Khan, President & CEO of Engro Corporation and Chairman of EPCL, “As a home-grown conglomerate, Engro has always strongly believed in the economic potential of Pakistan and, therefore, we have committed to invest in businesses that help solve some of the most pressing issues of Pakistan. This expansion is a landmark achievement for Engro, and we are confident that it will reshape the petrochemicals landscape of Pakistan. We fully support the Government’s ‘Make in Pakistan’ policy to promote export-oriented industrialization. I would like to thank our local teams, global partners, and Government stakeholders, for showcasing exemplary resilience and collaboration for completion of this expansion, despite the challenges posed by COVID-19.”
Addressing the inaugural ceremony, Prime Minister Imran Khan said that the PTI Government was pursuing policies to support expansion of local businesses, promote import substitution and exports. In particular, PM Imran Khan urged the business community to focus on import substitution and diversification of the export base to support sustainable economic growth of Pakistan. He appreciated the pivotal role played by Engro Corporation and its subsidiaries in different sectors of the economy.
The PVC demand in Pakistan has grown at a steady rate of 6% each year, with around 70% of the consumption going into the construction sector. Besides PVC, EPCL also produces the key raw material of caustic soda for textile industry, thus, being a valuable supply chain partner for Pakistan’s largest export sector.