Trans Polymar, UK, which is planning a 310,000 tonnes production facility of high-density polyethylene (HDPE), Linear Low Density Polyethylene (LLDPE) and Low Density Polyethylene (LDP) at Port Qasim, will be in a position to export their products worth 100 million dollars in first year of its operation.
Peter Leoyed Cooper, an official of the company, stated this while talking to chief executive officer of Engineering Development Board Imtiaz Rastgar in Islamabad on Wednesday.
Both discussed the polyethylene (PE) project in detail. The company has entered into agreements with various firms for procurement of plant and equipment, licensing for PE manufacturing process and supply of raw materials. The plant will produce about 248,000 tonnes initially, increasing capacity in the third year to 360,000 tonnes per annum.
This plant can meet the entire demand for polyethylene in Pakistan. The production capacity can be easily expanded further, depending upon the demand, by up to 100 percent. Estimated cost of the project is 400 million Euros (about $480 millions) with debt/equity ratio of 70:30. The Naptha Cracker project and the Polypropylene projects, to be set up after the successful completion of the Polyethylene Project, will cost about Euro 900 million ($1.1 billion).
The British company is demanding tariff protection for 10 years for all the items in the PE, Naphtha Cracker chain. The CEO assured the company official of full cooperation of the Board. However, he expressed dissatisfaction on export performance of multi-nationals in Pakistan. He said that these companies were enjoying tariff protection for the last so many years without entering into export market. Trans Polymar should give due importance to this aspect, he said.
