TRANS POLYMERS TO INVEST US $ 480 MILLION TO SET UP POLYETHYLENE PLANT AT KARACHI

Islamabad, November 15, 2005

A delegation of Trans Polymers Ltd of UK led by its Chairman Mr. Peter Lloyd-ooper informed Dr. Abdul Hafeez Shaikh Federal Minister for Privatisation & Investment that his company was planning to establish a  Polyethylene Plant at Karachi at an initial investment of US $ 480 million.

Dr. Abdul Hafeez Shaikh while appreciating the project assured maximum support to the group and said that attractive investment opportunities were  available in Pakistan for the investors in different fields such as Trading, Energy, Information Technology & Telecom, SMEs, Mining, Infrastructure, Tourism, Privatisation of Public Sector Entities and other areas.

The Minister stated that with the continuity of economic policies and good  governance Pakistan has made strong economic progress, which were being reflected in all key macroeconomic indicators as 60 % (US $ 1.52 billion) increase in FDI during last financial year, US $ 329 million FDI during  current financial year (July-September), 8.4 % GDP Growth, Exports improved to US $ 14.41 billion and Forex reserves increased to US $ 12.61 billion.

He further said that 100 % foreign equity ia all sectors was allowed in Pakistan, with a level playing field for both domestic and foreign investors. Remittance of royalty, technical % franchise fee, capital, profits and dividends were also allowed to the investors while foreign investment was fully protected, he said.

Dr. Hafeez Shaikh hoped that the establishment of Polyethylene Plant in Pakistan would help in saving the foreign exchange otherwise used for import  of Polyethylene and would also meet the local requirements.

Mr. Peter Lloyd-Cooper Chairman of Trans Polymers Limited informed the Minister that the plant would have rated production capacity of 310,000 metric tones per annum and would produce 80 % 248,000 metric tones in the first year increasing the production to 115 % (360,000 metric tones) in the third year, which could meet the entire demand of polyolefin in Pakistan. The construction, commissioning and warranty test of the plant was estimated at 34 months while the project was expected to go into commercial production by the fourth quarter of 2008, he added.

He further stated that the project would provide 2,000 jobs, particularly to the skilled manpower with a saving of foreign exchange to about US $ 178 million based on present prices and import level while currently the product was all being imported.