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Four Pre-Qualified parties for the privatisation of Pak Arab Fertilizers (Pvt)
Limited (PFL) participated in the first round of the Pre-Bid Conference under
the Chairmanship of Mr. Salim Gul Shaikh, Secretary Privatisation Commission
here today. The four parties included Nishat Chunian Limited/Umer Fabrics,
Fatima Group of Companies, Dawood Hercules Chemical Limited and Employees
Management Group, which is conditionally pre-qualified. Ministry of Industries
& Production, IPIC and NFC representatives were also present in the
meeting.
The Pre-Bid Conference held at Privatisation Commission for the privatisation
of Pakarab Fertilizer (Private) Limited (PFL) through the sale of 94.8 %
shares on ‘as is where is’ basis, decided to hold the Second round of pre-bid
meeting in the last week of May 2004 after the completion of the due diligence
of the transaction, which will commence from April 26 by the respective
parties, while each party will be given one week time to complete the due
diligence process. Pakarab Fertilizers (Private) Limited is 52 % GOP (through
National Fertilizer Corporation) owned public company, located at Khanewal
Road, Multan in the Punjab Province. International Petroleum Investment
Company of UAE (IPIC) owns the balance 48 % shares.
The company was incorporated in 1973 with a paid-up capital of Rs.743.061
million. PFL is the largest fertilizer complex in Pakistan and the only
factory producing Calcium Ammonium Nitrate (CAN) and Nitro-phosphate (NP)
commonly known as compound fertilizer. Raw materials for manufacture of the
fertilizers are natural gas supplied by Sui Northern Gas Pipelines Limited
through its transmission network and rock phosphate imported form
Jordan/Morocco.
The project is located at Khanewal Road, Multan. The site area comprises 302
(301.47) acres, which includes area for the factory and the housing colony,
which is owned by the company.
The company produces Nitro-phosphate (NP), Calcium Ammonium Nitrate (CAN) and
Urea. The annual capacities of the products are Ammonia 316,800 metric tonnes,
Nitric acid 455,400 metric tonnes, Nitrophosphate 304,500 metric tonnes,
Calcium Ammonium Nitrate 450,000 metric tonnes and Urea 92,400 metric tonnes.
Currently the company’s products are being marketed through the National
Fertilizer Marketing Limited (NFML), a government owned company responsible
for marketing the fertilizer production of all the government owned
fertilizer-manufacturing units. The fertilizer sector offers strong
opportunities for further development by private sector entrepreneurs. The
plant is operating at excellent efficiency levels, which are, on the average,
above the installed capacity. All the plants are in sound condition and have
been supplied by renowned suppliers.