FFC plans venture in steel manufacturing, coal gasification <img height="3" width="1" />
KARACHI: Going further with its business diversification strategy, Fauji Fertilizer Company (FFC) plans to venture in steel manufacturing from scrap and on-ground coal gasification in Thar, an official said on Saturday.
FFC Chief Executive and Managing Director Lt Gen Malik Arif Hayat (Retd) said that the company had conducted a study for steel manufacturing from scrap.
“We are already in talks with three foreign banks in this regard and we have shared out study with them,” said Gen Hayat.
FFC is the largest urea manufacturing concern in the country, catering to over 50 percent of the country’s fertiliser demand.
About their future plans in the energy sector, Gen Hayat said that the company is also exploring avenues to provide gas to its fertiliser plants from alternative resources as the natural gas reserves are rapidly depleting.
The FFC is planning to generate gas from Thar coal through on-ground coal gasification, he said.
“We have prepared a pre-feasibility report, however, the plan is on a very preliminary stage,” he said.
“We are waiting for the coal to come out of the land and then we would analyse its quality and utility for gasification,” he said.
This region is rich with natural resources and all the countries in this gas-rich belt are urea manufacturers, he said.
“Natural gas, in addition to the scarcity, was getting costly day-by-day and the local urea manufacturers could not compete with the regional players with such a high cost of doing business,” said Gen Hayat.
Gas supply to the fertiliser plants has been an issue as the government cut supply to fertiliser plants in view of shortages in the winter season.
The gas supply to FFC plant was also slashed by over 12 percent, he said.
The short supply of gas to fertiliser makers has cost Rs66 billion to the national economy in fiscal year 2011, as farmers had to pay more for imported fertiliser despite government’s subsidy on it.
According to the breakup of the cost, farmers paid an additional Rs38 billion on the purchase of imported fertiliser in need, while the government extended subsidy worth Rs28 billion for the imported fertiliser.
Ffc Plans Venture In Steel Manufacturing, Coal GasificationFFC diversification plan
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