chemical industry of pakistan
TRANSCRIPT
P R E F A C E
The chemical industrial sector covers a very wide spectrum and while some areas like manufacture of chemical fertilizers and oil refining seem to have been well covered, other segments are yet to be developed. This study on the Prospects of Chemical Industry is aimed at suggesting the future course of action to promote the Chemical Sector as heart of strengthening the overall industrial base of Pakistan. It reviews the present status of Chemical Industry in Pakistan, analyses the import statistics, availability of raw materials and suitability of chemical plants locations. An effort has been made to review most of the sectors and to present an overall picture of the chemical process industry in Pakistan.
Views of the various stakeholders including the top companies and entrepreneurs have been taken and necessary recommendations have been made for future policies. The study is indicative in nature, potential areas of investment have been highlighted, detailed feasibility study shall however, be required for each project.
The manufacturing sector is considered the backbone of a country. The share of manufacturing sector in the GDP currently is around 18% in Pakistan. It is hoped that with the development of chemical industrial sector, share of manufacturing sector would significantly increase, contributing to the overall GDP.
The development of the proposed chemical industries would save foreign exchange through import substitution, help in the development and growth of downstream small and medium industry, contribute in providing jobs and poverty alleviation. It is hoped that this study, like several others preceding this one, will bring up to date information to the professionals and investors alike. May Allah, Almighty accept our effort and bring industrialization and self-reliance to Pakistan. Experts Advisory Cell Islamabad April 2003
MESSAGE FROM MINISTER FOR
INDUSTRIES & PRODUCTION
The economy of Pakistan has seen considerable growth in various sectors over the past few years. However, certain important sectors are still underdeveloped which need special attention of the Government. Historically, Pakistan has concentrated on low tech to medium technology type of industries. The development of Hi-tech and Engineering industry has by and large been attached low priority. To meet the rapidly increasing requirement of chemicals, dyes and pigments, industrial raw materials and other allied chemical products, it has become important to disseminate comprehensive information for planning the development of Chemical & Petrochemical Industry in Pakistan. Realizing the importance of this sector, Ministry of Industries and Production assigned a study on “Prospects of Chemical Industry in Pakistan” to Experts Advisory Cell. The main thrust of the study is to review the existing status of chemical industry, the availability of local raw materials, supply and
demand situation and to formulate practical recommendations to attract investment in this sector. As Pakistan’s economy is largely dependent on products made from agricultural produce such as cotton and related textiles being a major source of foreign exchange earning constitutes about 60% of total exports. Therefore, the Government’s priority is to improve the yield of agricultural products through quality inputs such as fertilizers and pesticides at affordable prices. The manufacturing sector is considered as the engine of economic growth. The share of manufacturing sector in the GDP currently is 17.7% in Pakistan. It is hoped that with the development of chemical industrial sector, share of
manufacturing sector would significantly increase, contributing to the overall GDP growth. Most of the raw materials and intermediates for dyes and pigments, paint & varnishes, pesticides, plastic and plasticizers are being imported. These raw materials belong to or derived from Petrochemicals, which presently have no base in the country. I am fully convinced that no appreciable progress is possible in the chemical sector without indigenous production of petrochemicals and other chemicals. The petrochemical groups constitute more than 76% of total chemical group import bill, which was over Rs 125 billion for the year 2001-02
The development of the proposed chemical industries would save foreign exchange through import substitution, help in the development and growth of downstream small and medium industries and contribute in providing jobs and poverty reduction.
Liaquat Ali Jatoi Minister for Industries &
I have advised Experts
Advisory Cell to circulate the report to all Industry stakeholders, Industry Associations and Chambers of Commerce & Industry to obtain their comments and recommendations so that a Chemical Vision is prepared for the approval of the Government.
The Government of Pakistan is determined to facilitate local and foreign entrepreneurs. An important step taken by the Government is that one desk facility services have been made available to the investors initially at Karachi, Lahore, Rawalpindi, Islamabad and Peshawar.
The study on “Prospects of Chemical Industry in Pakistan” prepared by Experts Advisory Cell is another step to facilitate investors. The Ministry and its support organizations are there to provide all possible assistance to investors to make their plans a success.
MESSAGE FROM SECRETARY
INDUSTRIES & PRODUCTION
The GDP of Pakistan has two sectors. The commodity sector and services sector each having 49.1% and 50.9% share in the economy respectively. Agriculture occupies 24.1% share in the overall economy while the share of manufacturing in GDP is 17.7%. The Ministry of Industries & Production has since last few years strived hard to create conducive environment for the growth of the industry, optimum utilization of industrial capacities, value addition and wastage reduction. The study on “Prospects of Chemical Industry in Pakistan” Is another effort to further the mission of the Ministry.
Pakistan’s major foreign exchange earnings are coming from export of cotton related products. However, Pakistan has not yet been able to even fully exploit the potential of value addition in the cotton sector which can multiply export earnings. Value addition is also required in chemicals, dyes and pigments which are generally petroleum based products.
Pakistan’s import of
chemicals related products ranges
between US$ 1.52 to 2.00 billion per
annum and represents 16 – 20% of
the total imports.
The per capita usage of petroleum and petroleum products including plastics is very low as compared with the developed countries. With the turnaround of economy, per capita income is now expected to increase. Efforts need to be made to increase the per capita income to US$ 900 – 1000 by year 2010. The share of manufacturing in the GDP of Pakistan is targeted to be raised to 25% from the present share of 17.7%. The target to achieve 15 million bales of cotton during the next few years shall require increase in the development of fertilizer, polyester fibre and pesticides industry.
Leather industry is another major contributor towards the export of Pakistan. The value addition of leather sector also requires quality chemical, dyes and pigments.
There is also a need to optimize the existing industrial base in the country and ensure different sub-sectors operate at their maximum capacity utilization and achieve maximum value addition in the agriculture products and by-products e.g. conversion of molasses and baggase to industrial alcohol and paper respectively.
Inorganic chemicals are mainly derived from mineral resource. Appropriate utilization of mineral sector is required in order to be self-reliant in chemicals. There is a big potential for export of these mineral based chemicals also. The global trade of chemical sector is around 10% of the total world trade whereas in case of Pakistan it constitutes only 2.1% of our exports.
All the above factors motivated us to initiate of the study on “Prospects of Chemical Industry in Pakistan” by the Experts Advisory
Cell. The study has been developed through extensive discussions with the stakeholders of the chemical sector. I hope this effort shall significantly contribute towards speeding up the process of industrialization in this sector.
The study has identified some products based on supply and demand gap. Since the feasibility depends on many factors I therefore, recommend that detailed techno-economic studies should be carried out to check feasibility of these projects.
In the end I request the chemical sector stakeholders, professionals and experts to study the report, recommendations and come forward with valuable suggestions so that Chemical Vision could be developed for the approval of the Government.
Secretary Industries & Production
April 2003
ACKNOWLEDGEMENT
This study on the Prospects of Chemical Industry in Pakistan covers
twenty (20) sub-sectors. It was necessary to involve concerned stakeholders and
experts in different sub-sectors to make the study useful. Therefore, various
stakeholders, professionals, officials and industrialists were consulted on several
occasions during the course of this study. The draft report was circulated in
August 2002 to selected industrialists, professionals and institutions. Industry
stakeholders showed keen interest and provided valuable comments and
suggestions. The final report has been amended wherever necessary by
incorporating these comments.
Special thanks to Sheikh Mahmood Ahmad, Ex-chairman FCCCL,
Adviser NUST, for his valuable input in finalizing the study especially the
recommendations.
Experts Advisory Cell (EAC) also acknowledges the cooperation
and contribution rendered by the following valuable stakeholders from
the public as well as private sector in compiling this report:
o A.T.S. synthetic (Pvt.) Ltd., Lahore:
Mian Anjum Nisar, Managing Director
o BASF Pakistan (Pvt.) Ltd., Karachi:
- Qazi Sajid Ali, Managing Director - Mr. Sajjad Saleem, Director Marketing
o Bombal Traders, Karachi:
Sheikh Ghulam Ahmad Bombal, Managing Director
o Colgate & Palmolive Pakistan Ltd., Karachi Mr. Sami H. Zaidi, Director
o CropLife Pakistan, Karachi: Mr. Asif M. Khan, Chairman
o Delta Industries (Pvt.) Ltd., Lahore:
Mr. Mohammad Sadiq, Head Chemical Unit o Dr. Farrukh S.M. Akhtar, Technical Advisor, Saudi Arabia o Engro Asahi Polymer & Chemicals Ltd., Karachi:
Mr. Asif Qadir, President o Engro Chemical Pakistan Ltd., Karachi:
Mr. Zafar A. Khan, President o Habib Sugar Mills, Karachi:
Syed Tanviruddin Ahmad, Director Projects
o ICI Pakistan Ltd., Karachi: - Mr. Azhar Ali Malik, Chief Executive - Mr. Pervaiz A. Khan, General Manager (Soda Ash Business) - Mr. Malik M. Akram, General Manager (Technical &
Engineering) - Mr. M. Afzal Jamil, Vice President PTA Manufacturing
o Industrial Chemicals (Pvt.) Ltd., Karachi: Mr. S. M. Zaheer Alam
o Ittehad Chemicals Ltd., Lahore: Mr. Ghulam Mustafa Khattri, Chief Executive
o Master Paint Industries (Pvt.) Ltd., Lahore:
Mr. Sufi Muhammad Amir, Commercial Director
o Mir & Associates, Industrial Consultants, Karachi: Mr. Amanullah Mir, Proprietor
o National Fertilizer Corporation (NFC), Lahore:
Mr. Abdul Mannan, General Manager (Tech. & Planning) o Olympia Chemicals Ltd., Lahore:
- Mr. Monim Bokhari, Office Manager - Mr. Masood Khaliq
o Pakistan Atomic Energy Commission, Islamabad:
Mr. Khalil Qureshi, Head Fuel Cycle o Pakistan Council of Scientific and Industrial Research (PCSIR),
Islamabad:
Dr. Anwar ul Haq, Chairman o Prime Chemicals (Pvt.) Ltd., Lahore:
Mr. M. Nazir Chaudhry, Managing Director
o Progressive Traders (Pvt.) Ltd., Karachi: Mr. Muhamamd Siddique Sheikh, Group Chairman
o Qaiser LG Petrochemicals, Lahore: Mr. Irfan Qaiser, Director
o Ravi Rayon Ltd., Lahore:
Dr. Fayyaz A. Mian, Consultant
o Sandal Dyestuff Industries (Pvt.) Ltd., Faisalabad: Dr. Salahuddin Munam, Director
o Sitara Chemical Industries Ltd., Faisalabad:
- Mian Muhammad Adrees, Chief Executive Officer. - Engr. Muhammad Khalil, Director Business Development - Mr. M. Yameen, Group Director Finance
o Small & Medium Enterprises Development Authority, Lahore:
Mr. Iqbal Mustafa, Chief Executive Officer
o Technology Management International (Pvt.) Ltd., Lahore: Dr. W.M. Butt
o Unilever Pakistan Ltd., Karachi:
- Mr. Sher Afzal Mazari, Head of Corporate Affairs - Mr. M. Qaiser Alam, Supply Chain Development Manager - Mr. Basharat Ahmad, Corporate Affairs Manager
EAC very gratefully acknowledges the very vital help
provided by all above professionals, which enabled the finalization of this
report.
Experts Advisory Cell Islamabad. April 2003
Table of Contents
Page No. Preface
Acknowledgement Executive Summary ................................................................................. i Importance of Chemical Industry ..........................................................1 Overview .............................................................................................3 Availability of Raw Material.................................................................. 10 Major Chemical Sub-sectors ................................................................. 15
o Petrochemicals, BTX, Carbon Black, MEG ................................ 16 o Fertilizers ............................................................................. 35 o Synthetic Fibers .................................................................... 41 o Alcohol from Molasses ........................................................... 52 o Pesticides ............................................................................. 59 o Plastics and Resins ................................................................ 67 o Paints and Varnishes ............................................................. 85 o Oleo Chemicals ..................................................................... 96 o Soaps, Detergents and Cosmetics........................................... 99 o Paper and Paper Board........................................................ 109 o Glass 123 o Soda Ash and Sodium Bicarbonate........................................ 127 o Caustic Soda, Chlorine and Related Products ......................... 131 o Sulphuric Acid, Hydrochloric Acid and Nitric Acid .................... 136 o Organic Chemicals............................................................... 139 o Specialty Chemicals ............................................................. 145 o Dyes and Pigments.............................................................. 147 o Textile and Tannery Chemicals ............................................. 155 o Water Treatment Chemicals ................................................. 159 o Food Chemicals................................................................... 160 o Essential Oils and Perfumes ................................................. 165
Recommendations .............................................................................. 166
Annexures:
I- Coal Reserves in Pakistan .................................................... 172 II- Coal Analysis ...................................................................... 174 III- Mineral Resources of Pakistan .............................................. 175 IV- Minerals for Chemical Industry ............................................. 176 V- Specialty Chemicals ............................................................. 185 VI- Chemical Imports ................................................................ 194 VII- Synopsis from Previous Reports............................................ 200 VIII- Company Profiles ................................................................ 221 IX- Fertilizer Policy 2001 ........................................................... 289
Appendix: I. Scope of Chemical Sector Development in Pakistan
Glossary of Abbreviations
EXECUTIVE SUMMARY
All over the world the chemical industry is a major contributor to the
national economy, playing both direct and indirect role. In Pakistan while some
segments of chemical industry have received due attention, others remain
neglected. So far the investment in this field is estimated to be Rs 360 billion.
Import of chemical related products constitute 20% which is around US$ 2 billion
of total imports. Thus there is a vast potential for developing this sector through
import substitution and self reliance.
The objective of this study is to review the existing status of chemical
industry, the availability of local raw materials, supply & demand situation and to
consolidate practical recommendations to attract investment in this sector. As a
result of immense consultation with stakeholders following additional objectives
emerged for inclusion in the study.
o Increase share of manufacturing in GDP from existing 18%
(Partially through setting-up Petrochemical and Chemical
Industries) to 25%.
o Identify projects to become self reliant
o Enhancing value addition within existing units of chemical /
processing industry.
The country has already suffered due to lack of investment in basic
petrochemical and chemical industry. There is still time if the government takes
corrective measure to improve the situation.
Present Status
Locally available resources of natural gas, petroleum and coal are
being used mainly to meet the energy requirement of the country. They have not
been utilized for the manufacturing of chemicals where in some cases value-
addition can be ten fold. The only exception is the use of natural gas to produce
fertilizers. There exists vast potential to manufacture chemicals from reserves of
indigenous natural gas, coal and minerals.
Some organized chemical sectors are well developed. A few basic
chemicals like sulfuric acid, caustic soda, soda ash and chlorine have sufficient
installed capacities to meet the local demand.
Most of the raw materials and intermediates for dyes & pigments, paints &
varnishes, pesticides and plastics & plasticizers are being imported. These raw
materials and intermediates mainly belong to or derived from petrochemicals,
which have no base in Pakistan.
Dyes & pigments are being produced locally but only partially meet the
demand. Most of these raw materials are imported. Active ingredients used in
pesticides & insecticides are not produced locally but about 30 units are involved
in formulations based on imported raw materials. There is a strong need for
domestic production of some active ingredients.
Numerous units are involved in the production of soaps and
detergents. However there is heavy dependence on the imported tallow for
soaps and alkyl benzene, sulfonic acid for the production of detergents.
The down stream industries of plastics, plasticizers and polyester are well
developed but again depend on the imported petrochemical raw materials, i.e.
olefins, poly olefins and Benzene, Toulene & Xylene (BTX). The petrochemical
sector remained neglected in spite of numerous recommendations in the last
three decades to setup a naphtha or hydro cracker. No appreciable progress is
possible in the chemical sector without the indigenous production of
petrochemical building blocks like olefins (ethylene, propylene, butadiene) and
basic aromatics like BTX (benzene, toluene and xylene). Keeping in view the
importance of the basic petrochemicals, setting up of a petrochemical complex is
strongly recommended.
Petrochemicals As mentioned above, most of the basic petrochemicals are being imported
whereas their local production is essential not only to boost the chemical sector
but for the entire industrial sector as for instance in case of textile industry,
polyester, viscose, dyes and bleaching agents play a pivotal role. Olefins and
their derivatives are being imported in large quantities for their end-use in
plastics, paints, dyes & pigments, pesticides, detergents and rubber products.
Similarly, the import of BTX tops among the chemical group. Only a small
installed capacity for BTX production exists in National Refinery, Karachi. The
demand for xylene and toluene is substantial in the country. Xylene is used in
large quantities for the manufacturing of PTA for polyesters and as a solvent in
pesticides.
A summarized import list of important chemical groups is presented in
section-4. The list contains 11 chemical groups of which 6 belong to
petrochemicals. These petrochemical groups constitute more than 76% of the
total chemical group import bill of above Rs. 125 billion for the year 2001-02. It
is thus essential to make an indepth study for the local manufacturing of
petrochemicals.
Organic Chemicals
All organic chemicals are derived from petroleum, gas or agro based raw
materials. At present, only few organic chemicals are being manufactured locally
and that too in small quantities. There is urgent need to utilize the available
molasses for conversion into value added organic chemicals and to examine
techno commercial viability of setting up plants based on coal / oil / gas.
Inorganic Chemicals Inorganic chemicals are normally derived from mineral base, which is still
an under- developed sector in Pakistan. Several minerals are available in the
country but they have not been gainfully exploited. Salts of Sodium, Potassium,
Magnesium, Barium, Chromium and Aluminum can be manufactured from the
locally available ores if the infrastructure facilities at relevant mineral sites are
developed. Presently large quantities of inorganic salts are being imported. Total
imports of inorganic chemicals were more than Rs 5.08 billion in 2001-02. Atleast
some of these can be produced by relatively simpler processes/technologies.
Suggested Projects
As a result of preliminary investigation, following projects are indicated for
detailed techno-economic study.
1. Petrochemical Complex
A detailed techno-economic study is necessary. This study can consider all
possible routes including Natural gas, Associated gases, Naphtha, Molasses and
Coal.
Fertilizers
In the next 10 years there will be a shortage of around 1.2 million MTPY
of urea and 1.13 million MTPY of DAP. Therefore two plants of urea and DAP
with average capacity of 600,000 MTPY each would be required to meet the
future requirement of Fertilizer. Two urea plants are estimated to cost approx.
US$ 700 million. Two plants of DAP can be established at around US$ 500
million. Thus, an investment of US$ 1.2 billion in this sector appears justified.
o Manufacture of Phospahtic Fertilizer through Chlorine
As stated above, the domestic demand for DAP shall be 1.13 million
MTPY. Fauji-Jordan Fertilizer Company (FJFC) if revived can produce
450,000 MTPY. There would still be a huge shortage of 780,000 MTPY of
DAP or any other Phosphatic Fertilizer.
Phosphoric Acid can be produced using Hydrochloric acid (from locally
available surplus chlorine) and locally available phosphate rock using
Ishikawajima-Harima Heavy Industries (IHI) process. This phosphoric acid
in turn can be used to produce Phosphatic Fertilizers.
3. Polyester Fiber
Keeping in view, a 8% annual growth rate in this sector by the year 2011,
almost 500,000 tons of Polyester Staple Fiber (PSF) capacity is required to be
added to the existing capacity to meet the growing demand. The minimum
economic size of the PSF plant is 150,000 tons per annum, as such at least three
additional PSF plants can be expected to come on stream to absorb the demand.
The additional capacity of PSF will also make feasible the establishment of a
300,000 MTPY capacity of PTA plant. A total investment of approximately US$
511 million will be required by the year 2011 for installing additional capacity of
500,000 tons.
4. Organic Chemicals from Molasses
More than 2 million tons of molasses are available every year out of which
more than half is exported at a nominal rate of about Rs 2,000 per ton. Molasses
is a by-product of local sugar industry and can be converted to value-added
organic chemicals. The conversion of molasses to ethane can be the first step
which will enhance value addition for sugar industry.
Industrial alcohol, acetic acid, oxalic acid, citric acid, acetone,
pharmaceuticals, ether and ethyl acetate can be produced from molasses and
then a chain of other organic chemicals can be manufactured.
o Ethyl Alcohol
Ethyl Alcohol also known as Ethanol can be produced by fermentation of
the molasses. There are 76 Sugar mills in Pakistan producing around 2
million MTPY molasses. Only nine distilleries exist to produce alcohol from
the molasses out of which 5 are in operation. Normal Alcohol produced is
95% that is mostly being exported.
Optimum size of distillery would be 50,000 to 80,000 litres / day capacity,
this will be enough for about 2 sugar mills. A standard design and
engineering package may be purchased from abroad and distilleries may
be installed with local fabrication and packaging.
o Gasohol Anhydrous Ethanol with increased concentration of 99.9% can be blended
with gasoline, blend is called Gasohol and used as Automobile fuel.
At present, there is no programme in the country to use Ethyl Alcohol as
Gasohol in the automobiles. The present consumption of Petrol stands at
1.27 million tons per year. For a Gasohol programme, with 20%
substitution of petrol by Ethyl Alcohol, there will be a reduction in import
bill of crude oil. The quantity of Alcohol required would be 254 thousand
tons.
5. Manufacture of VCM (Vinyl Chloride Monomer) from Chlorine Gas
Conventional use of chlorine is 60% in petrochemicals and 40% in the
production of other solvents.
Engro Asahi has established PVC Resin manufacturing plant at Port Qasim.
The manufacturing process is from the polymerization of VCM. VCM currently is
being imported. This can be manufactured locally by utilizing the surplus chlorine
available in the country and imported ethylene. Engro’s Chemical handling
terminal can be used for the import of ethylene. Later as soon as petrochemical
complex is set up, import of ethylene can be substituted by local production.
Ethylene chloride can therefore by produced as a basic raw material for
Engro’s PVC Plant.
6. Methanol
Methanol is a petrochemical product produced by natural gas cracking.
Last five years import data is given below:
Methanol Import
Year Quantity Litres (000)
Quantity M. Tons
Value (Million Rs.)
1997-98 24,012 19,210 238 1998-99 19,771 15,817 184 1999-00 27,196 21,757 233 2000-01 33,763 27,010 438 2001-02 34,069 27,255 376 2002-03* 20,877 16,702 268
*July-December Source: Federal Bureau of Statistics Methanol is used as freezing point depressant and manufacture of
petrochemical products like formaldehyde, Acetic acid, Methyl Tertiary Butyl
Ether (MTBE), etc. The demand justifies setting up of a small unit meeting
domestic demand.
7. Paper from Bagasse or Cotton Sticks
Bagasse is a by-product of sugar industry. It is not wasted but
traditionally being used by the sugar mills as a fuel for their boilers.
A project to make paper from bagasse was initiated in 1980’s but did not
materialize. Now with the possible exploitation of coal as cheaper fuel for boilers
like coal, it is expected that bagasse could be made available for paper
manufacturing. Paper will be a better value-added product as compared to
burning of bagasse as fuel only. About 76 sugar mills in the country produce
millions of tons of bagasse, most of it should be converted to make paper and
board.
Similarly, thousands of tons of cotton sticks are available every year from
the cotton crop. Presently, they are burnt as domestic fuel or wasted. They can
be economically converted to pulp for making paper and paper-board.
Wheat straw and river grass are already being used for paper making,
more mills can be planned on these raw materials.
8. Pesticides
Pesticides have become essential for better output of the agricultural
products but this sector lacks a base in the country. The imports are rising,
exceeding Rs 7 billion during 2001-02. It is not possible to manufacture all active
ingredients in the country because of the absence of petrochemical base and the
lack of required R&D facilities. However, a few major active ingredients can be
manufactured utilizing Chinese experience. Special attention is required to be
given to the insecticides, used for cotton, (about 71% of total consumption in
the country) and their active ingredients (poisons) for their local manufacture.
9. Hydrogen Peroxide
Hydrogen peroxide is extensively used in textile processing and in excess
of 20,000 M. tons are being imported every year. Two existing plants in Pakistan,
one in Nooriabad and other in Hattar, have closed down and all local demand is
being met through imports. There is scope to establish a modern technology
plant of about 17,000 MTPY capacity. The estimated cost of the project is US$21
million or Rs 1.26 billion. Hydrogen peroxide if set up within Ammonia complex
can save some capital cost.
10. Dyes & Pigments
There is local manufacturing of dyes and pigments but large quantities are
still being imported. Total import of this group stood at about Rs 5.0 billion
during 2001-02. The raw materials for this category are petrochemicals.
11. Titanium Dioxide
There are two industrial grades of titanium dioxide pigment (i) Rutile
grade used for the manufacture of paints and plastics and (ii) Anatase grade
used in Polyester Fiber and paper industry.
It looks practical to establish a 10,000 MTPY facility to manufacture
anatase grade to cater needs of polyester fiber industry of Pakistan. Sulfuric acid
one of the major raw materials is being manufactured in Pakistan and other
material Ilmenite can be either imported or locally available Ilemenite can be
upgraded. The capital cost is estimated to be around US$ 35 million.
12. Alkyl Benzene Sulfonates (detergent base)
The rising demand for detergents calls for setting up manufacturing
facilities for its basic ingredient like, dodecylbenzene or tri-decylbenzene
sulfonate. There are few local producers based on imported raw materials.
Presently, more than Rs 1.5 billion worth of surface acting agents are being
imported. The proposed petrochemical complex in the country will provide
benzene locally to produce alkyl benzene and then the alkyl benzene sulfonates.
13. Essential Oils
There is variety of essential oils and they find use in perfume and food
industry. The raw materials are leaves and flowers of natural plants available in
Pakistan. These are high technology projects but purity of products gives value
addition. Because of the abundant flora and fauna available, production of
essential oils should be encouraged to substitute import of perfumes which are
more than Rs 0.5 billion per year. High quality essential oils can also be
exported. In this regard collaboration with France can be beneficial.
14. Inorganic Salts
Large quantities of inorganic chemicals are being imported totaling Rs 5.8
billion. These chemicals include selected inorganic salts worth Rs 1 billion.
Producing inorganic salts locally can save large foreign exchange. It is to
be noted that minerals for these inorganic salts are available in Pakistan and they
are relatively easier to manufacture. The costs for such projects are generally
low because most of the expertise and engineering facilities are available locally.
15. Manufacture Of Potassium Chlorate (KCLO3)
As evident from imports in recent years, the present demand for KCL03 is
about 3000 MTPY. Virtually the entire demand is in the match industry, which is
being met through imports. The manufacturing process for KCLO3 is based on
the electrolysis of potassium chloride in the presence of sodium chloride. The
total project cost of an economic sized plant with a capacity of 3000 MTPY is
broadly estimated at Rs. 180-200 million based on a budgetary Chinese price.
16. Manufacture of Basic Chromium Sulphate from Chromite (Cr2SO4)
Presently the entire demand for Basic Chromium Sulphate (BCS) used for
leather tanning, is being met from imports as well as from local production.
Considerable manufacturing capacity for BCS from chromite is presently
unutilized due to the closure of two plants for various reasons. Barring small
production of BCS from Chromite at Industrial Chemicals, Karachi. The entire
local production of BCS is confined to the manufacture of BCS from imported
sodium dichromate. This needs to be discouraged as the value addition in the
case of BCS to be manufactured from Chromite is far greater than BCS produced
from sodium dichromate. Moreover the foreign exchange savings are much
higher in the BCS production from Chromite as compared to BCS produced from
sodium dichromate.
17. Manufacture of Cigarette Filter Tows and other chemicals Ethyl Alcohol produced from Molasses can also be used for chain
production of Acetaldehyde, Acetic Acid, and Acetic Anhydride. Acetic Anhydride
when reacted with cotton linters from ginning mills gives Polymers which may be
used for production of x-ray films, Photo films, spectacle frames, cigarette filter
tows. Cigarette filter tows import alone is around Rs. 1 billion which may be
substitute following this chain production.
18. Smokeless Coal for fuel
Smokeless coal can be produced by proper blending of Coal, Calcium
Oxide and baggasse, all are abundantly available in Pakistan. This mixture does
not produce smoke or smell on combustion and therefore it is more acceptable
as domestic and industrial fuel. In 1989, M/s. JICA submitted a feasibility report
titled “Feasibility Study Report on Smokeless Coal Briquettes” to the Ministry of
Petroleum & Natural Resources and strongly recommended the use of smokeless
briquettes in the country. JICA’s recommended actions are supported in order to
utilize local coal resources.
19. Manufacture of Gum Rosin and Turpentine Oil
Vast forest of Pine trees exist in Hazara and Azad Kashmir. Gum
from these trees can be used for the production of Gum Rosin and Turpentine
oil. Some sort of mechanism needs to be evolved to encourage auctioning of
Pine tree areas for extraction of Gum instead of cutting them. Once gum is made
available. The technology is available locally. This local manufacture can result in
US$ 4 – 5 million saving of foreign exchange which is being spent in the import
of Gum rosin and Turpentine.
20. Manufacture of Vinyl Acetate Monomer and Butyl Acrylate
o Vinyl Acetate Monomer (VAM)
VAM is used for the manufacture of Poly Vinyl Acetate (PVA)
Emulsion. The current requirement of PVA Emulsion in the country
is around 35,000 MTPY. VAM requirement for this is around 15,000
MTPY which is currently being imported in bulk.
o Butyl Acrylate
Butyl Acrylate is used for the manufacture of Acrylic binders used in
Textile, leather and paint industries. The current requirement of
Acrylic binders in the country is around 20,000 M. Tons. For this
about 10,000 MTPY of Butyl Acrylate is required which is being
imported.
o Prospects
Both VAM and Butyl Acrylate can be manufactured locally if the
feedstock i.e. Propylene and Ethylene is made available. These can
be made available either through Petrochemical complex or import
via land route.
1. IMPORTANCE OF CHEMICAL INDUSTRY
Because of the wide variety of products it is difficult to agree on a
common definition of the chemical industry across countries. In particular, fibers,
rubber and plastic processing can be either included or excluded. Countries that
include fibers in Chemical Industry are: Germany, UK, Italy, Spain, Netherlands,
Ireland, Portugal, Greece, Sweden, Austria, Finland, Norway and Poland.
Countries excluding fibers are France, Belgium and Denmark. Belgium also
includes rubber and plastic products in the definition of chemical industry.
Chemicals are divided in two main categories from value addition
point of view. Those produced in large and bulk quantities but with lower value
addition are called Commodity Chemicals. Examples are fertilizers and soda
ash, etc. Specialty Chemicals are those produced in smaller quantities with
higher value addition. Examples are dyes & pigments, pharmaceuticals and
enzymes, etc.
Chemical sector plays a vital role in the economic development of
any country. Pakistan has not yet utilized potential of chemical sector. Realizing
the importance of this sector, this study was initiated by the Experts Advisory
Cell (EAC), as per directive of Minister and Secretary, Ministry of Industries and
Production. The main objective of the study was to highlight the constraints in
the development of the chemical industry, suggest policy recommendations and
identify potential projects based on supply and demand gap as well as possible
export considerations. Extensive discussions with experts, representatives of
trade and industry and chemical engineers of repute has led to the conclusion
that development of chemical industry is vitally important and a concerted effort
must be made to cover the lost ground.
Chemical sector is diversified and covers a vast range of products.
Following are the major end products under this sector:
o Petrochemicals o Soda Ash & Sodium
Bicarbonate
o Fertilizers o Caustic Soda & Chlorine
o Synthetic Fibers o Sulfuric Acid & Other acids
o Alcohol from Molasses o Organic Chemicals
o Pesticides o Dyes & Pigments
o Plastics & Resins o Textile & Tannery Chemicals
o Paints & Varnishes o Water Treatment Chemicals
o Oleo Chemicals & Soaps,
Detergents and Cosmetics
o Food Chemicals
o Paper & Paper board o Essential Oils
o Glass
464 452
225
184
63 50 48
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50
150
250
350
450
550
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WORLD CHEMICAL SALES
2. OVERVIEW
2.1 GLOBAL
The world chemical industry is one of the most important manufacturing
sectors with an annual turnover of approximately US$ 1,500 billion.
The main players in chemical sector are from USA, Western Europe and
Japan while emerging players are from China, Eastern Europe and Eastern Asia.
According to the results of recent surveys, Western Europe is the world leader in
chemical industry, which has a share of 36% of total chemical sales. The graph
below shows World Chemical Sales in different regions.
Source: Chemical Engineering Journal (year 2000)
The chart below shows the distribution of sales of chemicals produced by
the Western European countries. Seven West European countries contributed
more than 88% chemical turn over as shown below.
7%
12% 9%11%
12%
8%
24% 17%
Belgium Itly Great Britian FranceGermany Spain Netherlands Others
The leading companies of the global chemical industry are BASF
(Germany), Du Pont (U.S.A.), Dow Chemical (U.S.A.), Exxon Mobil (U.S.A.),
Bayer (Germany), Total Fina Elf (France), Degussa (Germany), Shell
(U.K./Netherlands), ICI (U.K.), BP (U.K.), Akzo Nobel (Netherlands), Sumitomo
Chemical (Japan), Mitsubishi Chemical (Japan) and Mitsui Chemicals (Japan).
The world chemical sales and profits of 20 leading companies are shown
in table below.
Performance of Top 20 Chemical Companies
US$ Million
Company
Sales
Operating Profits
Capital
Spending
R&D
Spending1 BASF (Germany) 30,790.5 2,604.6 3,345.3 974.8
2 Dupont (U.S.A) 28,406.0 3,207.0 1,925.0 1,776.03 Dow Chemical
(U.S.A) 23,008.0 2,266.0 1,349.0 892.0
4 Exxon Mobil (U.S.A) 21,503.0 1,161.0 1,468.0 NA5 Bayer (Germany) 19,295.2 1,824.2 1,752.2 949.96 Total Final Elf
(France) 19,203.1 1,499.0 124.5 460.7
7 Degussa (Germany) 15,584.1 619.1 1,034.6 499.48 ICI (UK) 11,746.7 874.8 438.2 266.89 BP (UK) 11,247.0 760.0 1,585.0 NA10 Akzo Noble
(Netherlands) 9,364.3 769.3 470.8 267.2
11 Sumitomo Chemical (Japan)
9,354.3 749.3 516.0 NA
12 Mitsui Chemicals (Japan)
8,720.3 505.8 570.9 NA
13 Dai-Nippon Ink & Chemicals (Japan)
7,512.7 407.1 387.8 NA
14 Equistar (U.S.A) 7,495.0 334.0 NA NA
15 DSM (Netherlands) 7,295.0 620.0 566.6 243.216 Henkel (Germany) 7,215.8 599.8 782.2 185.217 SABIC (Saudi
Arabia 7,119.8 1,620.7 NA NA
18 Rhodia (France) 6,835.3 457.0 463.4 195.319 Air Liquide (France) 6,590.1 1,028.2 836.6 87.820 Union Carbide
(U.S.A) 6,526.0 596.0 459.0 152.0
TOTAL 264,812.2 22,502.9 18,075.1 6,950.3
Source: Chemical Engineering News July 2001
2.2 PAKISTAN
At the time of independence, chemical industry in Pakistan was practically
non-existent. Over the years, some traditional sectors have developed, however
the Chemical Industry in Pakistan is still at a very nascent stage.
In early 50’s, PIDC was setup by the Government, for industrialization of
the country. As a result, a large chemical estate comprising Pak American
Fertilizers, Maple Leaf Cement, Antibiotics (Penicillin) and Pak Dyes & Chemicals,
was established at Iskanderabad (DaudKhel), district Mianwali. This estate
played an important role and served as a nucleus for chemical industry in
Pakistan.
In 1960’s, another chemical complex was set up in private sector at Kala
Shah Kaku, Lahore. Chemical factories also started emerging at Karachi due to
the investment friendly policies which gave confidence to the investors.
In early 1970’s, private industries were nationalized with the result that
the fast growing chemical sector started to decline. The growth of chemical
sector could never pickup.
The imports of chemicals are on increase in value and volume terms. This
indicates the vast potential for the chemical industry in Pakistan. There were
some investments in the recent years in the production of Pure Terephthalic Acid
(PTA), fertilizers, polyesters and Poly Vinyl Chloride (PVC). However investments
in the petrochemicals complex and other chemicals are urgently required to be
self-reliant in basic organic and inorganic chemicals.
It is to be noted that huge capacities for petrochemical manufacturing are
available in the neighboring countries of Middle East, Far East and Iran. Experts
opine that a Petrochemical Complex should have been set-up when the tariff
protection was highest. However, ways and means need to be found, as setting
up of a Petrochemical Complex would result in hundreds of downstream small
and medium enterprises.
Some selected chemical sectors have developed to meet the local
demand. They include fertilizers, Polyesters, PTA, PVC and some basic chemicals.
Total investment in chemical industry stands at around Rs 360 billion as shown
below.
Investment in Chemical Sector
1947 to 2002
Sectors Units Fertilizers 10 87
Sugar 76 50
Synthetic Fibers + PTA 6 55
Cement 24 44
PVC + Others 1 (PVC)+ Others 35
Paper & Paper Board 97 28
Industrial Chemicals 18 22
Edible Oil 155 7
Glass 31 11
Pharmaceuticals 21
Total 360
Source: Respective Associations/Estimated figures
2.2.1 CHEMICAL IMPORTS
Pakistan’s total imports have exceeded US$ 10 billion out of which
chemicals imports constitute approximately US$ 2 billion. A detailed list of the
main chemicals imported during recent past (1997-98 to 2001-02) along with
their quantities & values is attached as Annexure-VI.
The import value of chemicals remained about 17% of total imports
during the last nine years and it was 15.5% in the year 2001-02. This situation
calls for special attention to the development of the chemical sector that
constitutes one of the major portions of Pakistan’s import bill.
Pakistan’s Imports
US$ Million
Year
Total Imports
Import of Chemicals
Chemicals Import %age
1991-92 9,253.3 1,468.9 15.91992-93 9,963.2 1,493.9 15.01993-94 8,561.6 1,494.0 17.51994-95 10,401.4 1,587.4 15.31995-96 11,804.8 2,187.4 18.51996-97 11,894.8 1,981.4 16.71997-98 10,116.4 1,791.5 17.71998-99 9,431.7 1,812.0 19.21999-00 10,309.4 1,997.2 19.42000-01 10,728.9 1,903.9 17.72001-02 10,403.8 1,354.3 15.5
Source: Economic Survey 2001-02
The import data of 2001-02 based on the major categories of chemicals is
presented below. It is noted that five top imports are of organic chemicals
(including petrochemicals), plastics & resins, pharmaceuticals, pesticides and
fertilizers. This suggests the direction of future investments in the chemical
sector in Pakistan.
Chemical related groups Import (Million Rs.)
Chemical Group Imports 2000-01
Imports 2001-02
Organic Chemicals 38,150 58,271
Plastics & Resins 20,743 13,559
Pharmaceuticals 13,965 5,670
Pesticides & others 11,448 6,790
Fertilizers 9,842 9,672
Paper & paper board 9,061 7,035
Dyeing & Tanning Chemicals 7,346 10,176
Inorganic Chemicals 5,364 5,083
Synthetic Fibers 4,543 3,522
Essential Oils 39 36
Glass 1,190 1,935
Total: 121,691 121,749
Source: Economic Survey 2001-02 & State Bank of Pakistan Annual Report 2001-02
3. AVAILABILITY OF RAW MATERIAL
Pakistan is rich in agriculture, has sufficient gas reserves,
reasonable oil and mineral resources including large coal reserves. The
agricultural raw materials are not fully utilized in value added products while
mineral raw materials are not exploited for lack of infrastructure. Concerted
efforts and consistent policies are required to develop chemical industry based
on agricultural and mineral raw materials.
3.1 Agro Based Raw Materials
The agro-based chemicals are derived from the agriculture products and
livestock. They are used in the industry to produce various chemicals including
alcohols, organic acids, edible oils, inedible fats, glycerin, gelatin etc. Pakistan
being an agricultural country, these raw materials are available in abundance.
The processing industry based on these raw materials has vast potential.
Following agro based raw materials and by products are available for conversion
to chemicals.
o Molasses
o Bagasse
o Rice husk
o Vegetable Seeds
o Starches
o Cotton Linters
o Wheat straw
o Wood
o Animal fats and bones
3.2 Natural Gas
Pakistan has proven gas reserves of 43.37 trillion cubic ft out of
which 15.78 trillion cubic ft has been consumed leaving 27.58 trillion cubic ft. of
balance reserves as of year 2002. Present gas consumption based on last two
years average is 900 billion cubic ft per year. There have been more discoveries
of natural gas in the recent years. Substantial quantity of gas reserves are being
used for domestic consumption, commercial purposes, industrial raw material
and fuel.
NATURAL GAS CONSUMPTION BY SECTOR2001-02
0.90%2.70%
38.20%
18.40%17.50%
16.70%
4.90%
0.90% Power
Gen. Industry
Domestic
Fertilizer (feed)
Fertilizer (fuel)
Commercial
Cement
Transport (CNG)
An appropriate percentage (i.e. around 10%) of local gas resources
and the future gas imports from Tajikistan and Iran need to be dedicated for
producing value-added chemicals. Natural gas can be a raw material to produce
Ethylene (through acetylene route), Methanol and several downstream products.
3.3 Petroleum
Petroleum is another major source of several petrochemicals. World
wide 90 to 93% oil and gas is consumed for energy purposes and balance 7-10%
is converted to petrochemicals.
a) Crude Oil
Pakistan is deficient in crude oil resources. The left over oil reserves
are only 40.27* million Ton of Oil Equivalent (TOE) (300.2 million barrels).
Pakistan‘s present annual production rate is 3.1∗ million TOE (63,500 barrels per
day). Pakistan’s yearly requirement is 10.4* million TOE. Only 30% of the total
crude oil requirement is therefore met by local crude production.
Naphtha, an intermediate product from refinery, is important for
the manufacture of petrochemicals. Pakistan produced 462,197 tons of naphtha*
during 2001-02. 180,000 tons additional naphtha is available from Attock
Refinery after the implementation of lead-free gasoline from July 2002. Present
availability of naphtha is therefore, about 600,000 tons/year.
b) Associated Gases
Associated gases contain higher hydrocarbons like Ethane, Propane
and Butane, etc which are produced from the oil fields in Punjab and Sindh.
Presently, there are 0.6 trillion cubic ft (17.8 million TOE) reserves available and
the production rate is 40 billion cubic ft (1,143,000 TOE) per year. These gases
can be converted to ethylene, propylene etc. but the gathering of these gases at
one point require large and complex pipeline system. However, the quantity is
not enough for a viable project.
∗ Source: Energy Year Book 2002
3.4 Minerals
Inorganic chemicals are mainly based on mineral resources and are used
for producing intermediate and final products. The main mineral reserves
available in Pakistan for chemical industry are given below:
o Coal
o Rock Phosphate
o Iron
o Sulfur (from Oil and Coal)
o Magnesite (Magnesium Carbonate)
o Chromites
o Kaoline (China Clay)
o Gypsum (Calcium Sulphate)
o Limestone (Calcium Carbonate)
o Soapstone (Silicates)
o Barite (Barium Sulphate)
o Rock salt (Sodium Chloride)
o Copper
The development of Thar Coal Field (the largest reserves) require around
5 years time, therefore projects based on these reserves should have to be
planned accordingly.
Pakistan needs to concentrate on the development of Petrochemical and
Chemical industry to utilize indigenouous coal, iron ore, phosphate rock reserves
and rock salt. A list of mineral resources and their production in Pakistan is given
in Annexure-III. The use of various minerals in the chemical industry is given in
Annexure-IV.
3.5 Coal
A total of 185,173 million tons of estimated coal reserves are available in
Pakistan with minable reserves of 1,982 million tons. Thar reserves in Sindh
Province are 175,506 million tons out of which 1,620 million tons are minable.
This coal having sulfur less than 3% and ash content with a range of 2.9 to
11.5% appear suitable for production of petrochemicals. Annexure I & II depict
coal reserves and analysis of Pakistani coal.
COAL CONSUMPTION BY SECTOR2001-02
Total: 4.24 Million Tonnes
72.50%
21.60%
5.90%Brick Kilns
Coke Use
Power
Generally, the value addition in chemical industry is much more than other
industrial sectors. It increases for commodity products to specialty and fine
chemicals and it is normally 10 to 200 folds taking crude oil value as the base.
Pakistan can exploit this situation only through vertical and horizontal
integration.
Although it is late yet no more time should be lost to develop
petrochemical industry in Pakistan. Local gas and coal reserves are in abundance
and they are of reasonable quality. Coal gasification technology to manufacture
petrochemicals is being used in USA, European countries and South Africa.
Technologies are available to manufacture chemicals from coal. Production of
value-added chemicals can make the project economically feasible. A suitable
technology may therefore, be acquired and used in Pakistan for Thar and Lakhra
coal reserves.
4. MAJOR CHEMICAL SUB-SECTORS
Pakistan has progressed well in the traditional sectors of fertilizers,
sugar, cement, caustic soda, soda ash and sulfuric acid. Other potential areas are
soaps, detergents, cosmetics, paints, dyes and pesticides. The petrochemical
sector needs much more attention because basic raw materials used for several
sub-sectors of chemical industry are not being manufactured in Pakistan, which
is only possible after the development of petrochemical industry.
Following sub-sectors have been discussed in the report:
o Petrochemicals o Soda Ash & Sodium Bicarbonate
o Fertilizers o Caustic Soda & Chlorine
o Synthetic Fibers o Sulfuric Acid & Other acids
o Alcohol from Molasses o Organic Chemicals
o Pesticides o Dyes & Pigments
o Plastics & Resins o Textile & Tannery Chemicals
o Paints & Varnishes o Water Treatment Chemicals
o Oleo Chemicals
o Food Chemicals
o Soaps, Detergents and
Cosmetics
o Essential Oils
o Paper & Paper board
o Glass
PETROCHEMICALS, BTX, CARBON BLACK, MEG
Petrochemicals
Petrochemical products currently form an essential base for production of
wide range of industrial and consumer products. Petrochemical industry is
termed as one of the fastest growing industrial sub-sector and has very well
contributed to the objective of rapid progress and balanced expansion of
manufacturing sector.
Petrochemical products are broadly classified into two group i.e. basic and
end-products. The basic product group includes ethylene, propylene, butadiene
and aromatics, while the end-products include plastics, synthetic fibres and
elastomers. The petrochemical products offer to a large extent an ideal
substitute for conventional materials such as wood, metals, jute, natural rubber,
etc. in which Pakistan is deficient. Therefore, there is substantial scope for
development of petrochemical industry in Pakistan.
At present, the petrochemical industry of Pakistan is limited to production
of polyvinyl chloride (based on imported VCM), synthetic fibers, i.e. polyester,
polyamide, aromatics (Benzene, Toluene, Xylene), Purified Terephthalic Acid
(PTA) and carbon black.
During last three decades repeated efforts have been made to develop a
project capable of producing basic petrochemicals. In this connection numerous
studies have been carried out for production of basic petrochemicals i.e.
ethylene, propylene, etc. utilizing the alternate feed stocks i.e. naphtha,
associated gases (ethane, propane), natural gas and molasses (a by product of
sugar industry). However, despite interest and efforts no significant development
has taken place as far as production of basic petrochemicals are concerned.
The factors responsible for non-development of basic petrochemical
industry include:
o High capacity of world scale basic petrochemical production facilities.
o Complexity and high level of the technology involved.
o High level of capital outlay required.
o Market size limitations vis-à-vis world scale plants.
o Relatively lower differential in tariffs of imported raw material and end
products.
Pakistan has no facility to produce basic petrochemicals like Ethylene,
Propylene, Butadiene, Styrene, etc. and they are being imported in bulk. Out of
long list of petrochemicals, only few are being produced locally. They include
Pure Terephthalic Acid (PTA), BTX and carbon black.
Petrochemicals provide raw materials for plastics, detergents, dyes, paints
& varnishes and pesticides etc. They are also used as additives in the lubricating
oils. Most of the specialty and fine chemicals belong to the petrochemical group.
Their production and marketing is monopolized by few global giants.
Pure Terephthalic Acid (PTA)
Purified Terepthalic Acid (PTA) is basic raw material for production of
polyesters. PTA is produced by oxidation of paraxylene in a solvent i.e. acetic
acid. Till recently, all the PTA requirements of the country were met through
imports. In 1998 ICI Pakistan setup PTA production facility at Port Qasim,
Karachi. The facility is capable of producing 400,000 MTPY of PTA with an
investment of US$ 450 million. The plant production during last four years
ranged between 175,832 to 397,000 metric tons. The current requirement of
PTA is estimated to be around 450,000 metric tons. The requirement is being
shared by local production and imports in ratio of 76:24. ICI is currently firming-
up plans for de-bottlenecking of the facility aiming to increase the PTA
production by 10-15%.
The demand/supply pattern of PTA is presented below:
Demand/Supply Pattern of PTA
(Metric Tons)
Supply
Year
Demand Local Imports Exports
1998-99 395,747 175,832 219,915 -
1999-00 392,905 262,811 148,199 18,105
2000-01 366,934 329,143 128,257 90,465
2001-02 449,814 395,803 126,955 72,944
2002-03* 223,459 202,828 87,393 51,217
*July-December
Source: ICI Pakistan
Aromatics (BTX)
Aromatics constitute main classes of hydrocarbons. Three most important
aromatics Benzene, Toluene and Xylene are commonly known as BTX.
In Pakistan benzene is used for production of insecticides, toluene is used
for production of Tri Nitro Toluene (TNT) and solvents. Xylene is produced as
mixed Xylene, which is used as solvent in paint industry and for formulation of
various pesticides and as surface coating agents.
Paraxylene and orthoxylene are derived from mixed Xylene. Paraxylene is
used as a raw material for production of PTA while orthoxylene is used for
production of phthalic anhydride.
Historically, BTX requirements of the country have been met from local
production and imports. The local production was from a small unit of National
Refinery Limited. The unit has a capacity of 25,500 MTPY of Benzene, Toluene
and Xylene. The unit uses reformat as feedstock. Throughout its existence the
plant has been operating at lower capacity owing to operational and production
economics. This unit is no longer in operation.
After start of ICI’s PTA production facility paraxylene imports have been
started. During the last two years the imports of paraxylene ranged between
250,000 to 300,000 metric tons.
Orthoxylene imports started in early 1990s, when phthalic anhydride plant
of Nimir Chemicals having capacity of 12,000 MTPY started production. During
last three years the imports of orthoxylene ranged between 2,500 to 3,500
metric tons.
BTX are the building blocks for PTA, polyesters, Nylon, DOP, polystyrene,
explosives, detergents, phenol, aniline and other down stream products. Large
quantities of Xylene and Toluene are being imported and total BTX imports were
312,791 tons with a value of Rs 7.9 billion during 2001-02.
BTX Imports
(M. Tons)
(Million Rs.)
Benzene Toluene Xylene Total (BTX) Year Qty. Value Qty. Value Qty. Value Qty. Value
1997-98 49 2 6,205 113 14,827 281 21,081 396
1998-99 27 2 8,360 143 131,163 2,171 139,530 2,316
1999-00 36 3 9,255 174 252,297 5,481 261,588 5,658
2000-01 50 1 14,117 311 252,940 6,917 267,107 7,229
2001-02 28 1 16,140 351 296,623 7,566 312,791 7,918
2002-03* 65 1 11,339 253 118,398 3,246 129,802 3,500
*July-Dec.
Source: Federal Bureau of Statistics
World over various routes are being employed to obtain ethylene and they
include naphtha cracker, associated gases, coal gasification, molasses and
imported ethylene. The most viable route has to be determined for the situation
in Pakistan.
Carbon Black
Carbon black is the general term for a number of jet black, sub micron
size pigments, comprised essentially of pure carbon. Carbon black is primarily
used as reinforcing and filling agent for manufacture of tyres and rubber
products. Small volumes are also consumed in manufacture of dyes and printing
ink.
Carbon black’s requirement of the Country are being met by local
production as well as imports. The local production is originating from National
Petrocarbon plant located at Pipri, Pakistan Oil Complex. The plant is capable to
produce around 10,000 metric tons per annum of various grades of carbon black.
The plant uses carbon oil as feed stock being produced and supplied by
National Refinery Limited (NRL). The market supply and demand pattern of
carbon black is presented in table below:
Demand and Supply Pattern of Carbon Black
(M. Tons)
Supply Year Demand
Local Imports
1998-99 10,921 5,054 5,867
1999-00 11,369 6,153 5,216
2000-01 8,922 4,523 4,399
2001-02 8,212 5,148 3,064
2002-03* 3,274 2,638 1,587
*July-December
Source:
National Petrocarbon (Pvt.) Ltd. (2002-03*)
Historically very small quantity of carbon black has been exported.
The carbon black market of Pakistan has remained limited owing to
minimal expansion in local tyre/rubber products manufacturing capacity and its
production. This is primarily due to large scale, legal as well as illegal imports of
tyres in the country.
Mono-ethylene Glycol (MEG)
Mono-ethylene glycol (MEG) is one of the most important synthetic
organic liquid used for manufacturing of polyester fiber and as anti-freezing
agent. In Pakistan MEG is primarily being consumed as input for manufacturing
of polyester fiber and yarn. The quantum of MEG being consumed as anti-
freezing agent is very small. At present, all the requirements of MEG are being
met from imports. In 2001-02 122,000 metric tons of MEG was imported at a
value of Rs. 3.12 billion (US$ 52.14 million). The imports during 1997 – 2002 are
presented below:
Imports of Mono-ethylene Glycol (MEG)
(M. Tons)
(Million Rs.)
Imports
Year Quantity Value
1997-98 126,623 3,675
1998-99 166,792 3,251
1999-00 174,024 4,447
2000-01 174,943 4,828
2001-02 121,875 3,129
2002-03* 105,753 2,896 *July-December
Source: Federal Bureau of Statistics
The MEG requirements during last decade have been increasing at
an annual growth rate of 10%. By 2009-10 the MEG requirements will increase
to 260,000 metric tons, which justify the setting up of a Petrochemical Complex.
Demand Pattern
The demand pattern of major petrochemical products during 2002-2010 is
presented below:
Demand Pattern of Major End-Petrochemicals
(000 M. Tons)
Estimated Demand
Product
Consumption
2001-02 2005-06 2009-10
Plastic (PE, PP, PVC & PS) 403.00 515.00 710.00
Synthetic Fibres (Polyester,
Acrylic & Viscose, etc)
500.00 700.00 900.00
Polyester Inputs:
• PTA 450.00 570.00 720.00
• MEG 160.00 220.00 330.00
Aromatics BTX 20.00 25.00 30.00
Paraxylene 300.00 365.00 450.00
Synthetic Rubber 20.00 25.00 30.00
TOTAL 1,853.00 2,420.00 3,170.00
Source: Enar Petrotech Services
Future Prospects
The table above justifies setting up of a Petrochemical complex, however
the project shall be economical if a prudent policy is adopted and adequate
incentives are offered. The need for establishing the facilities to manufacture
basic petrochemical products has long been realized. All the previous reports on
chemicals sector have recommended the establishment of a petrochemical
complex through any viable route. The strongest of all recommendations was the
setting up a Hydro Cracker or Naphtha cracker plant.
The hydrocarbon resources of the country are largely being used for
energy requirements i.e. fuel. These could be utilized for the manufacturing of
high value-added petrochemicals. Natural gas is however also being used for the
manufacture of ammonia, as an intermediate for the production of fertilizers.
The import data provided in the table reveals that a major portion of
Pakistan’s total imports consist of petrochemicals, i.e., ethylene, propylene,
butadiene, benzene, toluene, xylene and their derivatives. It is thus, essential
that serious efforts be made to manufacture these petrochemicals locally in order
to save foreign exchange and to attain self-reliance.
The downstream industries based on Petrochemical products such as
paints, plastics, synthetic fibers, rubber, etc. have grown considerably.
Therefore, the petrochemical complex is very much needed to meet the
downstream growing demand in the country and to establish a strong backward
integration for the development of other non-traditional sectors.
Dr. Farrukh Akhtar, a consultant prepared a report regarding the
development of petrochemicals in Pakistan (Copy attached as appendix). He has
focused on the importance of this sector and has suggested to prepare a road
map for at least next 50 years. He has also emphasized on adopting a process of
identifying future projects.
World over various routes are being employed to obtain ethylene and they
include naphtha, associated gas, coal gasification, molasses and imported
ethylene. The most viable route has to be determined for the situation in
Pakistan. Options for the production of petrochemicals, available to Pakistan, are
detailed below:
o Naphtha Cracker
The technology for the production of petrochemicals from oil, by hydro
cracking or naphtha cracking, is well known and established. Naphtha is a
refinery by-product of crude oil. These are hydrogenated to get the desired basic
petrochemical olefins.
It is also to be noted that Pakistan depends heavily on crude oil imports.
Pakistan exported 392,411 MTPY of Naphtha during 2001-02.
The naphtha cracker helps to make olefins (ethylene, propylene etc) and
it has no direct role for the manufacturing of aromatics (BTX). The aromatics are
separated from the reformat of an oil refinery.
In order to know whether a naphtha cracker is viable in Pakistan, the
demand for down stream products (olefins) has been assessed and analyzed
below:
Demand for olefins and aromatics
The requirement of all olefins and aromatics is presently being met
through imports. The analysis of the import data for the year 2001-02 suggests
that the equivalent demand of ethylene in the country is about 200,000 tons per
year. The table below depicts the situation:
Import data of Petrochemicals and equivalent Ethylene Demand
(M. Tons) Products
Imports 1999-2000
EquivalentEthylene demand
Imports 2001-02
EquivalentEthylene demand
Imports* 2002-03
EquivalentEthylene demand
Polyethylene 126,458 126,458 158,650 158,650 96,576 96,576
Polypropylene 99,294 - 144,051 - 73,223
Butadiene 15,250 3,202 - - - -
Polyvinyl
Chloride
68,712 19,240 18,682 5,231 7,536 2,110
Styrene 11,771 3,138 13,907 3,707 7,460 1,988
Polystyrene 16,916 4,510 2,440 651 3,192 852
MEG 166,792 39,578 121,875 28,920 105,753 25,094
PVA 10,653 3,344 443 139 244 60
Total 515,846 199,470 460,048 197,298 289,620 125,645
*July-December
Source: Federal Bureau of Statistics
The present requirement is a naphtha cracker of 200,000 MTPY capacity
(as the equivalent demand of ethylene). This plant will require to process about
650,000 tons per year naphtha while 600,000 MTPY is locally available. The plant
shall yield the following products per year:
o Ethylene 200,000 tons
o Propylene 126,000 tons
o Butadiene 74,000 tons
o Fuel Gas 116,000 tons
o Gasoline 124,000 tons
Total 640,000 tons
It is to be noted that naphtha plant capacity is defined by the output of
ethylene from that plant. The cost of 200,000 M. tons naphtha cracker plant will
be approximately US$ 225 million. The approximate cost of down stream
polyethylene and polypropylene plants is likely to be US$ 400 million. Thus the
total cost of the petrochemical complex based on naphtha cracker comes out to
around US$ 625 million (courtesy Aftec (Pvt) Limited, Lahore).
o Gasification of Coal
Another option for the manufacture of basic petrochemicals is the
gasification of coal. Numerous chemicals and fuels can be manufactured from
the gasification of coal as illustrated in the diagram below. In late 1950’s, Pak
American Fertilizers, Iskandarabad, Daudkhel was based on coal gasification
technology supplied by Lurgi to produce Ammonia and Ammonium Sulfate
fertilizer.
Sasol of South Africa are reported to have developed a technology for the
gasification of coal with high ash content. Sasol acquired the technology from
Lurgi, Germany. South African coal reserves are largely bituminous with relatively
high ash content (about 45%) and low sulfur content (1%). It is understood that
Sasol or similar technology can be adopted for Pakistani coal reserves.
Coal Chemicals
Source: Shreve’s Chemical Process Industries
Sasol, South Africa has developed the processes for production of
petrochemicals from coal by gasification. Coal under pressure and high
temperature, in the presence of steam and oxygen is converted to raw gas.
Condensate recovered from the subsequent cooling of gas, yields co-products
such as tar and oil. Nitrogenous compounds (Ammonia), sulfur and phenolic
compound are recovered. The purified synthesis gas after cooling is made
available for conversion to synthetic fuels and or chemical production.
The synthesis gas is cracked to produce ethylene, propylene and propane
whereas aromatics like benzene, toluene and xylene are produced form coal-tar.
In addition, fuel oil and diesel are produced. The advantage of SASOL process is
that it can process low-grade coal and a number of high value chemicals are
produced along with synthetic fuels.
SASOL built their first coal gasification plant producing liquid products in
1955. After fifty years, SASOL produces the equivalent of 150,000 barrels per
day of fuel and petrochemicals from coal via its indirect liquefaction process.
SASOL manufactures more than 200 chemical products exporting to more than
70 countries around the world. The company has grown to have a turn over of
3.7 billion dollars from which more than 50% is generated from chemicals.
It is strongly recommended to consider the coal gasification route and
utilize the vast coal reserves for the production of high value petrochemicals.
Suitable technologies are available in the world. Government initiatives are
needed to start the chain of actions for providing infrastructure in the coal field
area in order to consider utilization of local coal reserves.
o Associated Gases Route
Associated gases are another option to develop petrochemical base in
Pakistan. 40,176 million cubic ft of associated gases in the year 2001-02 are
accompanied by about 100,000 MTPY of condensate from various fields in Sindh
and Punjab. This condensate is rich in higher hydrocarbons, i.e. Ethane,
Propane, etc. and can be used for the production of basic organic chemicals like
ethylene, propylene etc.
This route is cheaper than the naphtha cracker route and only requires
dehydrogenation of ethane, propane etc. to convert them to ethylene, propylene
etc. The limited supply of associated gases and collection of all condensate on
one site are the main obstacles.
o Natural Gas Route
Natural gas with 96% methane can be used for the production of
methanol, ethylene, acetylene, subsequently formaldehyde and other
petrochemicals.
As a first step, natural gas is reformed to produce 8-9% acetylene in the
synthesis gas. After the removal of acetylene, the left over synthesis gas can be
used to manufacture methanol – an important building block for petrochemicals
like Methyl Tertiary Butyl Ether (MTBE), etc.
Sitara Chemicals Faisalabad planned a 30,000 MTPY Acetylene plant in
1997 based on the Chinese technology using natural gas as feedstock. The
proposal also included the production of VCM & PVC from the excess Chlorine
gas available. The project could not be materialized due to the non-availability of
natural gas at the proposed site.
A project is under consideration to import natural gas from central Asia. It
may be helpful to find the composition of that gas at this stage for its use as
feedstock for chemical industries.
Molasses
Molasses is another source for petrochemical products. Pakistan must tap
this resource as it is available in abundance. Due to its physical and chemical
properties molasses can be mixed directly with other products or it can be used
in more complex chemical processes for manufacture of high utility products.
Details are as under:
A) Direct Utilization o Fertilizer (Mixed with Urea) o Animal feed (Molasses meal, block
& liquid). o Coal Briquettes o Fuel
B) Distillery Industry o Industrial Alcohol o Anhydrous Alcohol o Potable Alcohol
C) Other Products o Gasohol o Acetic Acid o Acetone o Butanol o Citric Acid o Lactic Acid o Glycerol o Yeast o Monosodium Gluconate o L-Lysine o Itaconic Acid
o Aconitic Acid o Cigarette Filter Tows o Many other derivative products for
pharmaceutical and plastic
industry
The main utility may be as Gasohol blended with gasoline.
Recommendations for Petrochemicals
o It is recommended that a separate study on manufacturing of
petrochemicals should be conducted with the aim to determine the most viable route for the petrochemical production in Pakistan. The study should discuss merits and demerits based on all options given in the report.
o It is important to note that Pakistani coal is higher in moisture content
which may pose a limitation for its use in petrochemical manufacturing through Sasol technology. In that case, other technologies available from Shell or Texas etc should be considered.
o A long term policy should also be prepared for the development of
petrochemical sector in the country. This policy may become a part of the overall policy for the chemical sectors.
o It is suggested that a master flow chart for the organic chemicals should
be developed with the database. This database may be used for planning the petrochemical industry in Pakistan.
Propylene Oxide
PPEETTRROOCCHHEEMMIICCAALLSS BBuuiillddiinngg BBlloocckkss
Nylon-6
Nylon-12
Polysrytene
Aniline
Sulphonation
Polyesters
PVCCompound
Alcohols
Polyethylene
Ethylmercaptans Ethanol
Vinyl AcetateAcetaldehyde Acetic AcidEthylene
Ethanolamines
Acrylic Esters
2-Butene
Poly vinylAlcohol
1-
EP Rubber
OxalicAcid
Ethylene OxideEthylene Glycol
PVCVinyl Chloride
ChloroEthylene
Ethy;eneDi Chloride
Ethyl AcrylateAcrylic Acid
Poly PropylenePropylene Naphtha Cracking
Coal Gasification AcetoneIso Propanol
GlycerineAllyl Alcohol
2-Ethylhexanol
n-Butanol
Butyraldehyde
AdiponitrileAcrylonitrile
ABS ResinsPolybutadieneButadiene
Caprolactum
Cyclo-Hexanone
Ethylbenzene Styrene
CumeneBTX
Alkylbenzene
DimethylTerephalate
PhthalicAnhydride
TerePhalateAcid
DOP
Cyclohexane
Phenol
NATURAL GAS
CRACKING
A. ACETYLENE B. SYNIHESIS GAS
PVC
ACETIC ACID
CH3COOH
RAW MATERIAL
FOR ACRYLIC
A. ACETYLENE
HCL HYDROCHLORIC
ACID
VINYL CHLORIDE
CH2 =CH-CL
WATER
H20
ACETALDEHYDEAIC
CH3CHO
HYDROCHLORICACID HCl
ACRYLO NITRILE
CHLORINE
CL2
IRI CHLORO
ETHANE
ALTERNATE ROUTE FOR PETROCHEMICAL INDUSTRY PRODUCTS WHICH CAN BE PRODUCED FROM NATURAL
B. SYNTHESIS GAS
i. SYNTHESIS GAS
+ H2O
METHANOL
ii. METHANOL
+ OXYGEN
FORMALDEHYDE
iii. FORMALDEHYDE
+ UREA
UREA
FORMALDEHYDE
FERTILIZERS
Fertilizers are key input for agriculture. They improve the quality of
crops in the form of high nutrient value and increase plant resistance to diseases
and climatic conditions. The demand of fertilizer increases proportionately with
the growing population.
Nitrogen, Phosphorus and Potassium are major nutrients required
by soil. These nutrients are provided by the following popular fertilizers.
Urea, Calcium Ammonium Nitrate (CAN), Single Super Phosphate (SSP),
Triple Super Phosphate (TSP), Nitro-Phosphate (NP), Di Ammonium Phosphate
(DAP), Sulfate of Potash (SOP), NPK
Urea represents 71% of total fertilizers consumed in Pakistan while DAP
15% and other fertilizers like CAN, NP, SSP and NPK have 14% share.
Raw Materials & Process
Raw materials used for the manufacture of fertilizers are ammonia, carbon
dioxide, phosphate rock, phosphoric acid, sulfuric acid, limestone and potash.
Ammonia is manufactured by reforming the methane in natural gas. Ammonia is
then reacted with different materials to produce fertilizers containing Nitrogen.
Ammonia & Nitric acid is used to produce Ammonium Nitrate. Phosphate rock or
Phosphoric acid is necessary to produce phosphatic fertilizer. Sulphuric acid is
reacted with crushed phosphate rock to produce SSP.
Production Capacity
Presently, there are ten operating fertilizer units in the country. Out of
these, four units are in the public sector, while six are in the private sector. One
of the private sector unit, Pak China, is closed. The average annual growth rate
in the sector was 7% during the last ten years. The share of fertilizer sector in
GDP is around 0.4% and total investment in this sector is approximately Rs 87.0
billion. The capacities of existing fertilizer plants are given below:
Capacities of Existing Fertilizer Plants
(MTPY)
Plant Product Year Present
Capacity 1 Fauji Fertilizer Company-I,
Goth Macchi (FFC-I) Urea 1982 695,000
Fauji Fertilizer Company-II, Goth Macchi (FFC-II) Urea 1993 635,000
Pak Saudi Fertilizers, Mirpur Mathelo Urea 1980 557,000
Fauji Jordon Fertilizer Urea 1998 550,0002
Company (FJFC), Karachi DAP* 1998 450,0003 Engro Chemicals Pakistan
Limited (ECPL), Dhaharki Urea 1968 850,000
4 Pak American Fertilizers (PAFL), Daudkhel Urea 1998 346,000
5 Dawood Hercules Chemicals Limited (DHCL), Lahore Urea 1971 445,000
6 Pak China Fertilizers Ltd. (PCFL), Haripur Urea* 1982 102,000
Urea 1962 92,400CAN 1978 450,000
7
Pak Arab Fertlizers Limited
(PAFL), Multan NP 1979 304,500
8 Lyallpur Chemicals & Fertilizers Ltd. (LCFL), Jaranwala SSP 1958 72,000
9 Hazara Phosphate Fertilizers, Haripur SSP 1989 90,000
10 Engro Chemical Pakistan Limited (ECPL), Karachi NPK 2002 100,000
Total 5,738,900
* Closed Source: National Fertilizer
Development Centre
Fauji Jordan Fertilizer Company (FJFC), Karachi is the only plant designed
to produce DAP fertilizer with annual capacity of 450,000 tons but it is closed
since September 2001. Efforts are under way to restart the plant.
Prices for nitrogenous fertilizers were deregulated in 1986 while
phosphatic fertilizers were deregulated in 1993. Fertilizer Policy of 1989 offered
incentives, such as duty free imports of plant and machinery, tax holiday for 8
years and lower rate of feed stock prices for 10 years, which have helped
increasing the urea production capacity from 2.2 million tons in 1990s to 4.2
million tons today. Since 1990, an investment of over US$ 1.2 billion has been
made in this Sector.
Domestic fertilizer production meets 70-80% of local demand. The gap
between fertilizer demand and domestic production is filled through imports. As
the domestic production of fertilizer has registered a growth in recent years, the
fertilizer imports declined by 10.45% in 2001-02.
Import of Fertilizer
(M. Tons)
Product 2000-01 2001-02 2002-03**
Urea 85,668 - 0
DAP 773,174 785,041 815,113
NP 46,596 3,718 -
Others * 52,533 69,085 28,345
Total 957,971 857,844 843,458
Source: National Fertilizer Development Centre * Includes AS, NPK, MOP, SOP ** July-December
The current consumption of fertilizer is about 129 Kg/hectare in Pakistan.
The main consumption of urea fertilizer is for wheat followed by cotton, rice and
sugarcane.
Natural Gas
The fertilizer sector is the second largest consumer of natural gas (22-
25%) after power sector (37.1%). Natural gas prices prevailing in Pakistan
ranges between US$ 1.5 to 2.0 per MM Btu.
Future Prospects
National Fertilizer Development Center (NFDC) has estimated a growth
rate of 2.5% for urea and 5% for DAP over the next ten years.
The supply and demand position of the fertilizer products, namely Urea,
DAP, SOP and MOP for the next 10 years is given below:
Supply / Demand Position
( ‘000’ Tonnes ) Urea DAP
Year Supply Demand Deficit/ Surplus * Supply Demand Deficit/
Surplus
SOP/MOP Demand
2001-02 4,190 4,178 12 67 970 -903 402002-03 4,170 4,282 -112 450 1,019 -569 442003-04 4,170 4,390 -220 450 1,069 -619 482004-05 4,170 4,499 -329 450 1,123 -673 532005-06 4,170 4,612 -442 450 1,179 -729 592006-07 4,170 4,727 -557 450 1,238 -788 642007-08 4,170 4,845 -675 450 1,300 -850 712008-09 4,170 4,966 -796 450 1,365 -915 782009-10 4,170 5,090 -920 450 1,433 -983 862010-11 4,170 5,218 -1,048 450 1,505 -1,055 942011-12 4,170 5,348 -1,178 450 1,580 -1,130 104*Presently DAP Plant is closed. Source: National Fertilizer Development Centre (2002)Excluding Pak China capacity of 102,000 tonnes.
Accordingly, urea shortage will be around 1.2 million MTPY and DAP
shortage will be 1.13 million MTPY by 2011-12. Therefore two plants of urea and
DAP each with average capacities of 600,000 MTPY shall be required to meet the
future needs of the fertilizers. Two urea plants are estimated to cost
approximately US$ 700 million while two plants of DAP can be established at
around US$ 500 million. Thus making a total investment of US$ 1.2 billion in the
coming ten years. Since fertilizer industry is a capital intensive industry therefore,
foreign investments would be encouraged. In order to attract the investment,
Government of Pakistan has announced Fertilizer Policy 2001 attached as
annexure-IX.
o Manufacture of Phospahtic Fertilizer through Chlorine
As stated above, the domestic demand for DAP shall be 1.13 million
MTPY. Fauji-Jordan Fertilizer Company (FJFC) if revived can produce
450,000 MTPY. There would still be a huge shortage of 380,000 MTPY of
DAP or any other Phosphatic Fertilizer.
Phosphoric Acid can be produced using Hydrochloric acid from locally
available surplus chlorine and locally available phosphate rock using
Ishikawajima-Harima Heavy Industries (IHI) process. This phosphoric acid
in turn can be used to produce Phosphatic Fertilizers.
M/s. Sitara Chemical Industries is already producing 10 MTPD of
Phosphoric acid and have also produced Phosphatic Fertilizers. These
fertilizers have successfully been used on different crops, results have
been very encouraging. Based on this success M/s. Sitara has launched its
Agri Division to promote this business further.
Note: Approximately four M. Tons Hydrochloric acid is required to produce one M. ton of Phosphoric acid.
Tariff Structure
Present tariff structure of Fertilizer is given in the table below.
S.No. HS Code Commodity DescriptionC. Duty 2002-03
Comments
1 2711.1100 Natural gas 5
2 9935.0000 Phosphatic Rock 0
3 2809.2010 Phosphoric Acid 10 C. Duty zero% for
phosphatic fertilizer vide
SRO.358(1)/2002
Finished Products
4 3102.1000 Urea 5
5 3103.1000 Super-phosphates 5
6. 3105.3000
Diammonium hydrogenorthophosphate (diammonium phosphate)
5
SYNTHETIC FIBERS
Synthetic Fibers are important manufactured raw materials used in the
production of blended yarn. These are blended with natural (cotton) or artificial/
Synthetic Staple Fibers for the manufacture of apparel/household textiles.
Pakistan’s synthetic Fiber industry is currently producing Polyester and Acrylic
Fibers. Chemi Group of Companies conceived a project with collaboration of
Swiss and Chinese suppliers for manufacturing of Viscose Staple Fiber (VSF) with
production capacity of 11,500 M. tons against total demand of around 26,000 –
28,000 MTPY. The unit namely Chemi Viscofibre is located in Nawabshah has
been set up at a total cost of Rs 1.873 billion. The polyester staple Fiber industry
has developed as the main synthetic fiber industry during the last decade in
response to growing demand for synthetic fiber for the production of blended
yarn. The polyester sector remains the largest and critical segment of Pakistan’s
synthetic fiber industry.
Production Capacity
The total installed capacity for manufacture of Polyester Staple Fiber (PSF)
is 620,000 MTPY. The country’s demand of PSF is being entirely met through
local production. The PSF industry has been able to successfully substitute
imports with the result that no significant PSF imports have been made during
the last five years except for an average import of 10,000 – 12,000 tons of
specialty fiber per annum. The installed capacities of major PSF producers are
listed in table below:
Installed Capacities of Major PSF Producers
Company Year of Establishment
Capacity, MTPY (2001-02)
Dewan Salman, Hattar, Haripur 1992 250,000
ICI Polyester, Sheikhupura 1982 114,000
Ibrahim Fiber, Faisalabad 1996 208,000
Rupali Polyester, Sheikhupura 1988 24,000
Pak Synthetic, Hub 1991 24,000
TOTAL CAPACITY 620,000 Source: Dewan Salman Fiber & ICI Pakistan Ltd
Supply & Demand
Local production, imports, consumption and actual growth rate of PSF
during the last five years is as below:
Sales, Import, Exports, Consumption & Growth Rate of PSF
(M.Tons)
Description 1998 1999 2000 2001 2002Production 100,215 104,559 108,770 230,258 229,787Dewan Salman
96,822 106,747 189,385 1,328,727 240,000
Production 54,090 63,394 65,948 71,000 95,021ICI Pakistan Ltd.
Sales 55,661 66,563 67,017 66,777 100,000
Production 22,676 20,652 23,241 22,400 23,569Rupali Polyester Ltd. Sales 22,889 20,646 23,139 21,830 22,000
Production 20,550 21,326 21,636 24,340 25,176Pak Synthetic Ltd. Sales 19,900 21,341 21,390 24,711 20,000
Production - - - - -National Fibers Ltd., (Closed down)
Sales - - - - -
Production 80,150 86,366 87,920DHAN Fibres
Sales 71,088 86,242 -
Dhan taken over by Dewan Salman
Production 67,399 69,399 70,412 69,760 104,286Ibrahim Fiber Ltd-1 Sales 65,045 69,901 69,316 67,889 100,000
Production 345,080 375,196 385,727 433,312 487,503Total
Sales 331,405 371,440 370,247 409,934 482,000
Imports 19,000 9,500 9,800 15,500 7,300Total PSF Consumption
350,405 380,940 380,047 425,434 489,300
Actual Growth Rate
13% 8% -0.24% 11% 13%
EXPORT 0 0 0 0 11,537 Source: Dewan Salman Fiber
Ltd.
Raw Materials
Polyester Fiber intermediates are derived from aromatics and olefin
chains. These include Pure Terephthalic Acid (PTA), Mono Ethylene Glycol (MEG),
Paraxylene (PX), and Acrylonitrile (ACN) for the manufacture of synthetic Fibers
like Polyester Staple Fiber (PSF) and Acrylic Staple Fiber (ASF).
PSF Manufacturing Process
The primary raw materials for the manufacture of PSF are PTA and MEG;
both are petrochemicals. PTA comes in powder form whereas MEG comes in
liquid form. PTA is mixed with MEG to form slurry. The slurry then undergoes
two chemical reactions namely esterification and poly-condensation forming
Polyethylene Terephthalate, commonly called PET which can be converted either
into chips, Fiber or filament yarn depending upon the end use. Local requirement
of MEG is entirely met through imports while ICI now meets about 60-70% of
the industry’s
demand for PTA
through its
400,000 MTPY
capacity plant at
Port Qasim. To
produce one Kg.
of PSF, 0.87 kg
PTA, 0.375 kg
MEG and 0.015 kg of other chemicals are used.
PTA 0.870 kg
MEG 0.375 kg 1 kg of Polyester Fiber + waste
Other Chemicals 0.015 kg
/ /
MEG PTA
Poly condensation:
Polyester
Spun
Fabric
Polyester
Poly condensation: PET
Polyester filament Yarn
MEG PTA
Polyester Chips
Spun Yarn Fabrics
Fabrics
Polyester Staple Fibre
POY/DTY/FDY Containers/film
Blending Ratio
Polyester fiber is blended with cotton and other fibers (viscose, acrylic) to
produce blended yarn to be used for the manufacture of gray cloth. Currently the
common blending ratio used in Pakistan is 52% polyester and 48% cotton as
compared to the international standards 65:35.
Acrylic Staple Fiber
There is only one unit of Dewan Salman Fiber producing acrylic staple
Fiber. The plant has an installed capacity of 25,000 MTPY but is utilizing only
50% of the capacity at present.
Polyester Filament Yarn (PFY) Industry
The filament yarn industry uses polyester chips (Textile Grade) as raw
material for manufacturing of synthetic fabrics/blended fabrics like suiting,
shirting and sheeting. Currently, there are 21 units involved in the manufacturing
of synthetic filament yarn with an installed capacity of around 105,000 MTPY.
The local demand for polyester filament yarn is between 85,000 - 90,000 MTPY.
Due to low prices of Filament Yarn, an import of 29,661 M. tons was made
during 2001-02 as compared to 7,973 M. tons in 1998-99.
The following tables depict name of companies producing polyester chips
and polyester filament yarn alongwith annual production capacities:
Polyester Chips
Company
Product
Capacity, MTPY
(2001-02)
Rupali Polyester, Sheikhupura Polyester chips-Textile grade 14,000
Novatex, Karachi Polyester chips-Textile grade 40,000
Rupafil, Sheikhupura Polyester chips-Textile grade 30,000
Total Polyester Chips 84,000
Polyester Filament Yarn
Company
Capacity, MTPY
(2001-02)
Status
A) Production based on PTA & MEG, as Raw Materials
Rupali Polyester, Sheikhupura 11,000 Operational
Rupafil Ltd., Sheikhupura 14,000 Operational
Gatron Ind. Ltd. I
Garton Ind. Ltd. II,
Hub 31,000
Operational
National Fibers Ltd. Karachi 3,000 Closed
Total (A) 59,000
B) Production based on Polyester Chips
Spintex 10,000 Operational
S. G. Fibers, Karachi 9,000 Operational
Polyron Ltd. Hub 4,000 Closed
Pak Fiber Karachi 2,000 Closed
Progressive Fiber Karachi 1,400 Partially
closed
Fayaz Filament Ltd Karachi 3,000 Partially
closed
Tilon Limited 700 Operational
Bengal Fiber Ind. Ltd. Karachi 3,000 Operational
Dilon Limited Karachi 1,000 Operational
Kohi-Noor Fibers Faisalabad
1,500
Operational
Ahsan Industry 600 Operational
Ahmad Factory 600 Operational
Tri-Star Polyester Karachi 3,000 Closed
Sind Industries Karachi 500 Operational
Indus Polyester Karachi 2,000 Operational
Tawakkal Polyester Karachi 1,600 Closed
Papa Sierra Fibers Ltd. Hattar 2,100 Closed
Total (B) 46,000
Grand Total (A+B) 1,05,000
The end-user of synthetic filament yarn is the Art Silk industry or small
power looms sector which is scattered all over the country as cottage industry.
Nylon Filament Yarn
Presently, only one unit is engaged in the manufacture of Nylon Yarn. Two
units are already closed. The names and production capacities are depicted in
table below:
Nylon 6 Filament Yarn
Company Capacity
MTPY 2001-02
Status
Bengal Fiber Industries, Karachi 1,000 Operational Dilon Ltd., Karachi 1,800 Closed Nilonm Nylon Mills Ltd. 800 Closed
Future Prospects
The PSF sector has been growing at an average rate of 8% over the last
four years. In addition, the increasing trend of shifting from 100 percent cotton
yarn to blended yarn in the spinning sector augurs well for the PSF sector. The
blending ratio, which is on the lower side in Pakistan as compared to
international standards is another factor which could give further boost to the
already growing PSF sector if higher blending ratios are encouraged. There is
also a need to develop the room-furnishing segment i.e. curtains, bed sheets,
carpets etc. which consumes major portion of polyester and acrylic staple fibers
produced globally. It is worth mentioning that ICI and Ibrahim Fibers have
significantly enhanced their capacities during the current year and Dewan
Salman is planning to expand its capacity by another 25,000 tons in the near
future. This trend clearly indicates increasing demand for synthetic fibers.
Keeping these factors in view and considering 8% annual growth rate in this
sector, it can be seen that by the year 2011, almost 500,000 tons of PSF capacity
is required to be added to the existing capacity to meet the growing demand.
The minimum economic size of the PSF plant is 150,000 MTPY therefore, at least
three additional PSF plants should come on stream to absorb the demand. The
additional capacity of PSF shall require 300,000 tons of PTA which can be met
through installation of equivalent facility for PTA production.
A total investment of US$ 511 million will be required by the year 2011 for
installing additional capacity of 500,000 M. tons of PSF.
Tariff Structure
The present tariff structure of Synthetic Fiber is given in the table below:
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
POLYESTER SECTOR
Raw Materials:
1 2902.4300 Para-Xylene 5 C. duty 0% for ICI to manufacture PTA vide SRO 358(1)/02
2 2915.2100 Acetic Acid 25 C. duty 0% for ICI to manufacture PTA vide SRO 358(1)/02.
3 2905.3100 Mono Ethylene Glycol (MEG) 10 4 2917.3610 Pure Terephthalic Acid (PTA) 20
Semi Finished 5 3907.6010 Polyester Chips (Yarn Grade) 20 6 3907.6020 Polyester Chips (Bottle Grade) 25
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
7 5501.2000 Synthetic filament tow of polyesters 20
8 5503.2000 Polyester Staple Fiber (PSF) 20
10 5401.1000 Sewing thread of synthetic filament 25
11 5508.1000 Sewing thread of synthetic Fiber 10
12 5402.2000 High tenacity yarn of polyesters 25 13 5402.3300 Textured yarn: Of polyesters 25
14 5402.4200
Other yarn, single, untwisted or with a twist not exceeding 50 turns per meter: Of polyesters, partially oriented
25
15 5402.4300
Polyester Filament yarn (Other yarn, single, untwisted or with a twist not exceeding 50 turn/meter:)
25
16 5402.5200 Other yarn, single, with a twist exceeding 50 turns per meter: Of polyesters
25
17 5402.6200 Other yarn, multiple (folded) or cabled: Of polyesters 25
Finished
18 5513.3300 Finished fabric of polyester staple Fibers 25
19 61.03 Garments 25 20 5505.1000 Waste of synthetic Fibers 10
ACRYLIC SECTOR
Raw Materials 1 2915.3200 Vinyl Acetate Monomer (VAM) 5 2 2916.1400 Methyl Acrylate 5
3 2924.1000 Dimethly Formantide (DMF) –Acrylic Amides 5
4 2926.1000 Acrylonitrile (ACN) 5 Semi Finished
5 5501.3000 TOW (Synthetic filament tow of Acrylic) 20 15% vide Sro
358(1)/2002
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
6 5501.9000 Other acrylic synthetic filament tow 10
7 5506.3000
Acrylic Tops (Synthetic staple Fibers, carded, combed or otherwise processed for spinning)
20 15% vide Sro 358(1)/2002
9 5508.1000 Sewing thread of synthetic Fiber 10
10 5509.5900 Other yarn, of polyester staple Fibers
10
11 5509.6100
Acrylic Spun Yarn (Other yarn, of acrylic or modacrylic staple Fibers mixed mainly or solely with wool or fine animal hair)
10 15% vide SRO 358(1)/2002
12 5509.6200
Acrylic Spun Yarn (Other yarn, of acrylic or modacrylic staple Fibers mixed mainly or solely with cotton)
10 15% vide SRO 358(1)/2002
13 5509.6900 Acrylic Spun Yarn (Other yarn, of acrylic or modacrylic staple Fibers)
10 15% vide SRO 358(1)/2002
Finished
14 55.15 Fabrics of acrylic or modacrylic staple Fibers 25
15 6110.3000 Shawl, Blankets and Sweaters of man-made Fibers 25
16 5505.1000 Waste of synthetic Fibers 10 NYLON SECTOR
Raw Materials 1 2902.2000 Benzene 5 2 2917.1200 Adipic Acid 5
3 2921.2200 Hexamethylenediamine and its salts 10
4 2933.7100 Caprolactum 5
Intermediate
5 3908.1000 Polyamides (Nylon Chips) 10
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
Semi Finished
6 5501.1000 Synthetic filament tow of nylon 5
7 5503.1000
Synthetic staple Fibers, not carded, combed or otherwise processed for spinning of nylon and polyamides
5
8 5506.1000 Synthetic staple Fibers of nylon or other polyamides processed
5
10 5508.1000 Sewing thread of synthetic Fiber 10
11 5402.1000, 3100,3200, 4100,6100,
Nylon Filament Yarn high tenacity 20 15% vide
SRO.358(1)/2002
12 5402.5100
Nylon Filament Yarn (Other yarn, single, with a twist exceeding 50 turns per meter:)
5
13 5509.1100, 1200
Single Yarn & Multiple folded or cabled Yarn (Containing 85% or more by weight of staple Fibers of nylon or other polyamides)
20 15% vide SRO.358(1)/2002
Finished
14 5407.1000
Woven fabrics obtained from high tenacity yarn of nylon or other polyamides or of polyesters
25
15 61.00 Garments, parachute fabric, Tyres, Stockings 25
16 5505.1000 Waste of synthetic Fibers 10
VISCOSE RAYON SECTOR
Raw Materials:
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
1 4701.0000, 4702.0000, 4703.0000
Wood Pulps 5
2 4706.1000 Cotton linters 5
Semi Finished
3 5502.0010 Artificial filament tow of viscose rayon 5
4 5502.0090 Artificial filament tow other than viscose rayon 10
5 5504.1000, 9000
Artificial staple Fiber of viscose rayon 5
7 5403.1000 High tenacity yarn of viscose rayon 10
8 5403.3100
Other yarn, single: Of viscose yarn, untwisted or with a twist not exceeding 120 turns per meter
10
9 5403.3200 Other yarn, single: Of viscose rayon, with a twist exceeding 120 turns per meter
5
10 5509.5100
Viscose Yarn (Other yarn, of polyester staple Fibers mixed mainly or solely with artificial staple Fibers)
10
11 5510.1100, 1200
Viscose Yarn (Single yarn & Multiple (folded) or cabled yarn) containing 85% or more by weight of artificial staple Fibers)
10
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
Finished Products
12 5515.1100
& 5516.1100
Fabrics of polyester staple Fibers mixed mainly or solely with viscose rayon staple Fibers
25
13 61.0000 Garments 25
14 5505.2000 Waste of artificial Fibers 10
ALCOHOL FROM MOLASSES
Molasses is a thick liquid left after the removal of sucrose from the mother
liquor in the sugar manufacturing process. As such it is a by-product of sugar
industry.
There are about 78 sugar mills in the country with a crushing capacity as
given below in the table:
Effective capacity and efficiency (MTPY)
Season Sugarcane crushing
Estimated Crushing Capacity
Operating Efficiency,
% 1997-98 41,012,473 52,895,109 77.54 1998-99 42,994,911 55,157,140 77.95 1999-00 28,982,711 55,163,129 52.54 2000-01 29,403,721 55,163,129 53.30 2001-02 36,708,638 55,163,129 66.55
Source: Pakistan Sugar Mills Association Annual Report 2002
Availability of Molasses
The present sugarcane crushing capacity provides an installed capacity of
5.2 million MTPY of sugar production, however capacity utilization is low and 3.2
million tons of sugar was produced in the year 2001-02.
Currently, the industry has the capability of producing 2 – 2.5 million tons
of molasses. This can vary depending upon the sugarcane production during the
particular year. Molasses production for the last five years is given below.
Production of Molasses
(MTPY)
Year Production
1997-98 1,995,788
1998-99 2,113,594
1999-00 1,397,378
2000-01 1,501,501
2001-02 1,822,961
Source: Annual Report 2002 Pakistan Sugar Mills
Association
The molasses has generally been exported rather than expanding the
potential of value addition. Sugar Mills do not have proper storage facilities for
molasses. Normally it is stored in open pits in the ground. These pits are exposed
to atmospheric changes as well as dirt. Appropriate storage facility can fetch
better export price till value addition proposals can be implemented.
Around 70% of the molasses produced in Pakistan is exported (mainly to
European countries). The balance is being used for industrial production of
alcohol and poultry feeds. The processed form of molasses is industrial alcohol.
The export of molasses for the last five years is given in the table below:
Export of Molasses
Years Quantity 000 Tons
Revenue Million Rs.
Revenue Million US$
1997-98 1,356 2,536 58.70
1998-99 1,835 1,974 42.17
1999-00 1,749 2,200 42.49
2000-01 1,119 2,459 42.24
2001-02 174 4,219 68.22
2002-03* 421 1,022 17.56
*July-December Source: Federal Bureau of
Statistics
Pakistan can earn more foreign exchange if all the molasses is converted
into Alcohol and other value added products.
Uses of Molasses
Due to its physical and chemical properties molasses can be mixed directly
with other products or it can be used in chemical processes for manufacture of
value added products, details are as under:
A) Direct Utilization o Fertilizer (Mixed with Urea) o Animal feed (Molasses meal, block &
liquid) o Coal Briquettes o Fuel
B) Distillery Industry o Industrial Alcohol o Anhydrous Alcohol o Potable Alcohol
C) Other Products o Gasohol o Acetic Acid o Acetone o Butanol o Citric Acid o Lactic Acid o Glycerol o Yeast o Monosodium Gluconate o L-Lysine o Itaconic Acid
o Aconitic Acid o Cigarette Filter Tows o Many other derivative products for
pharmaceutical and plastic industry
Ethyl Alcohol
Ethyl Alcohol can be produced by fermentation of the molasses. Only nine
distilleries exist in the country out of which five are in operation, one is under
construction and the three are temporary closed as per detail given below.
Industrial Alcohol Production in Pakistan
(Million Litres)
Name of distillery Installed
Capacity per
annum
Average Production
per annum during
last three years
A.
1
2
3
4
5
Operational Installed
Capacity
Noon Sugar Mills Distillery
Shakargang Sugar Mills Distillery
Crescent Sugar Mills Distillery
Premier Sugar Mills Distillery
Khanaza Sugar Mills Distillery
Total
15
12
7.5
10.5
18.0
70.5
10.38
5.89
1.77
3.36
10.09
33.66
B.
6
Under Construction
Al-Abbas Sugar Mills Distillery
22.0
Idle Capacity
Northern Chemical
Thatta Sugar Mills Distillery
Hysons Sugar Mills Distillery
11.2
7.0
7.0
C.
7
8
9
Total 25.2
The present availability of Ethyl Alcohol in Pakistan is extremely limited.
Seven distilleries are operating with production capacity of 75 ,000 tons per year.
Normal Alcohol produced is 95%, which is mostly being exported.
Optimum size of distillery would be 50,000 to 80,000 liters/day capacity,
this will be enough for about two sugar mills. A standard design and engineering
package may be purchased from abroad and distilleries may be installed with
local fabrication.
Gasohol
Anhydrous Ethanol with increased concentration of 99.9% can be blended
with gasoline, blend is called Gasohol and used as Automobile fuel. It is already
being used in other countries of the world like Brazil and USA. Recently India has
issued legislation to use Gasohol as automobile fuel with special tax incentives.
Use of Gasohol has the following advantages;
o Use of Gasohol would reduce dependence on imported
Crude Oil. o Molasses is an important indigenous resource; its utilization
in Gasohol programme would help increase employment in industrial and farm sectors.
o Gasohol reduces Carbon Dioxide emissions from automobile
and alleviates the problem of global warming by reducing green house gasses.
o Ethyl Alcohol improves octane rating of Gasoline and thereby
reduces dependence on High Octane Blending Component (HOBC) and Methyl Tertiary Butyl Ether (MTBE).
Gasohol use in Pakistan
At present, there is no programme in the country to use Ethyl Alcohol as
Gasohol in automobile. The present consumption of Petrol stands at 1.27 million
tons per year. For a Gasohol programme, with 20% substitution of petrol by
Ethyl Alcohol, the quantity of Alcohol required would be 254,000 tons. Pakistan
has sufficient feedstock in the form of molasses to meet the requirement of Ethyl
Alcohol for National Gasohol Programme. Only half of the available molasses
would be used to fulfill the requirement of this target.
Manufacture of Cigarette Filter Tows and Other Chemicals Ethyl Alcohol produced from Molasses can also be used for chain
production of Acetaldehyde, Acetic Acid, Acetic Anhydride. Acetic Anhydride
when reacted with cotton linters from ginning mills gives Polymers which may be
used for production of x-ray films, Photo films, spectacle frames, cigarette filter
tows. Cigarette filter tows import alone is around Rs. 1 billion which may be
substituted following this chain production.
Industrial Alcohol
o Present operating capacity is 70.5 million liters, whereas the actual
average production per annum during the last three years has been 33.66 million litres i.e. 48% capacity utilization.
o Capital cost of a new project is approximately Rs 250-300 million.
Animal Feed
o 50% consumption of molasses goes for feed stock world wide. o Best available option after Industrial Alcohol for Pakistan. o Very low investment. o Increased milk production by 1 Kg/day/animal. o Cost of molasses block is Rs 2.5/Kg/day/animal. o Additional earning of Rs 16/day/animal.
Acetic Acid
o Present operating capacity in the country is 7,000 MTPY i.e. Wah Nobel.
o Imports remain between 22,000 MTPY. o Presently imports are increasing due to requirement of ICI PTA plant
(which are importing 15,000 - 20,000 tons/annum duty free). o As an immediate step, Ravi Rayon Ltd. may be revived to start
consumption of molasses to manufacture products like Alcohol, Acetaldehyde, Acetic Acid, Acetic Anhydride, Acetone and Baker Yeast.
Citric Acid
o No manufacturing facility available in the country. o All requirements are being met through import. o Domestic requirement is around 3000 to 4000 ton/annum. o Cost of project is Rs. 2 billion to Rs 5 billion depending on the size of the
project. o Requirement in country justifies one economic size plant.
Coal Briquettes
o Low capital cost i.e. Rs 5 to 7 million. o Pollution free. o Can be used in northern areas where natural gas is not available for
domestic use. o Requirement of Brick Kilns can be met through Coal Briquettes. o Heating requirements of poultry industry can also be met through uses of
coal briquettes. Recommendation
o Instead of exporting the molasses in raw form, emphasis should be given
to its value addition by setting up downstream industry for the
manufacture of alcohol, Acetic acid, oxalic acid, ether and ethyl acetate,
etc.
o Experts suggest that the government should make it mandatory for each
sugar unit to set up down stream industry which can make sugar industry
cost competitive and would also serve the policy of value addition.
PESTICIDES
Agriculture productivity is largely dependent upon the use of pesticides.
Huge losses in crop output caused by pest attack can be saved by proper and
optimum use of pesticides. Pesticides are also used for household hygiene.
Pesticides used for crop protection are classified according to their
functions like insecticides, fungicides, rodenticides and weedicides etc. Pests can
destroy approx. 40% crop in pre-harvest and post-harvest period and therefore
the use of chemical compounds for the protection of plants from pests, diseases
and weeds have attained great importance in agriculture.
Besides the advantage of increasing the crop yield there are several
disadvantages of using the pesticides. The excessive and continuous use of
pesticides contaminates food grains and pollutes the underground water
resources.
The use of pesticides also kill the friendly pests and birds, alternate
methods are being exploited. The biological method of pest control is claimed to
be as effective as the use of synthetic pesticides. It is environment friendly and
cost effective. In this method friendly pests are reared in controlled environment
and then they are shifted and released in the crop area that needs protection.
The friendly pests eat the eggs and larva of the harmful insects and thus provide
plant protection. Various public sector organizations, such as Pakistan
Agricultural Research Council (PARC) and private organizations, such as Eco-
Conservation Initiatives (ECI) Islamabad are involved in biological pest control
programs.
Presently, the basic manufacturing facilities for pesticides do not exist in
the country. However there were two manufacturing units for the production of
Dichloro Diphenyl Trichloro Ethane (DDT) and Benzene Hexa Chloride (BHC) in
Pakistan, located at Kala Shah Kaku (Punjab) and Nowshera (NWFP). The total
installed capacity of these two units for DDT and BHC were 2,020 and 2,310
MTPY respectively. These units are closed for last many years because both
pesticides have been banned for use in Pakistan. Generally, Chlorine containing
pesticides have been banned in the world.
Pesticides used at present are either organic or inorganic in nature.
Organic group contains natural plant oils, nicotine and pakerthsum as natural
pesticide. It also contains synthetic pesticides as compound of chlorine like
DDT, BHC and endrin, aldrine, dialdrine, heptachlor, etc. Twenty four (24)
pesticides including above compounds have been banned in Pakistan because
they were hazardous to human health and environment.
Since pesticides were subsidized their imports remained under
Government control till 1979 when 75% share was passed to private sector
while remaining 25% was retained by the Government. However, since
February 1985, all subsidies were withdrawn and private sector was fully made
responsible for import, distribution and sales of pesticides throughout Pakistan
except Baluchistan. Pesticides were allowed to be imported under generic
names from 1991. This resulted in several times increase in pesticides business
and improved the yield of all crops especially cotton. The formulation industry,
which started in 1980s, got a real boost and developed in 1990s. In the year
2000, the local formulation exceeded the imported pesticides.
Production Capacity
Presently, the installed capacity for the formulation of various types of
pesticides is more than the local requirement. According to Ministry of Food,
Agriculture and Livestock (MINFAL), there are about 30 companies involved in
the formulation of pesticides. The local formulation products include liquid
pesticides, powder and granules and contribute 67% in the local market. Most of
the raw materials for formulation including active ingredients and pesticides in
finished form are being imported. The sector growth rate is 3%.
The installed capacities of the main 19 formulators is given below:
Formulation Repacking
Firm Liquid
Litre
Solids
Kgs.
Granules
Kgs
Liquid
Litre
Solids
Kgs.
Granules
Kgs
Welgreen Chemicals, Lahore - - - - 8,000 - -
Warble (Pvt.) Ltd., Multan 42,000 - 8,000 16,000 8,000 -
Reliance Chemicals, Karachi 12,000 2,000 - 12,000 4,000 -
FM United (Pvt.) Ltd., Lahore 16,000 - - 20,000 10,000 -
Agrolet Chemical Industry, Multan 48,000 - - 48,000 - -
Agricides (Pvt.) Ltd., Karachi 3,000 4,000 - 3,000 4,000 -
Edgro (Pvt.) Ltd., Karachi 4,200 4,500 - 4,200 4,500 -
Granulars (Pvt.) Ltd., Karachi - - 14,000 3,000 - -
Pakistan Agro Chemical, Karachi 24,000
(16,000+
8,000)
3,000 3,000 24,000
(16000 +
8000)
3,000 3,000
Syngenta, Karachi 20,000
(17000
+3000)
- 6,000 20,000 4,000 6,000
R.B. Avari (Pvt.) Ltd., Karachi 8,000 - 4,000 5,000 - 4,000
Union Agro Industries, Karachi - - 12,000 - - -
Bayer DAS (Pvt.) Ltd., Karachi 7,500 - - 12,000 3,000 -
Famy Industries, Karachi 12,000 1,500 - 12,000 15,000 -
N.I.C.L., Karachi - 5,000 - 6,000 2,000 -
Pak China Chemicals, Lahore 96,000 - - 96,000 - -
AventisCrop Science, Karachi 22,500 - - 30,000 2,500 -
Marvi Agrochem., Karachi 32,000 10,000 - 32,000 10,000 -
ICI Pakistan, Lahore (Close down
formulation plant)
- - - - - -
Grand Total: 347,200 30,000 47,000 361,200 70,000 13,000
Source: Department of Plant Protection, M/o Food, Agriculture & Livestock
Import of Pesticides
(Million Rs)
Year 1988 1999 2000 2001 2002 2003*
Value 6,960 7,324 4,971 7,741 6,790 2,193
*July-Dec. Source: Department of Plant Protection, M/o Food, Agriculture &
Livestock
Liquid pesticides account for 95% of the total consumption. Remaining
5% are powder, dust or granules. Insecticides account for 88%, herbicides 11%
and fungicides 1% of the total pesticides used for plant protection. Additional
quantities of pesticides are used for public health and household.
Supply & Demand
Major use of pesticides is for the cotton crop, which consumes about 71%
of the total pesticides used in Pakistan.
The import of pesticides, local formulation and local demand is shown in
the table below. Imports from China are on the rise presently catering for 60%
demand.
Imports, Demand & Local Formulation of Pesticides
(M.
Tons)
Year
Pesticides
Imports
Local
Formulation
Total
Demand 1998 22,765 18,811 41,576
1999 27,210 18,470 45,680
2000 19,764 41,535 61,299
2001 20,678 26,914 47,592
2002 27,099 42,794 69,893
2003* 13,111 16,763 29,874
*July-Dec. Source: Department of Plant Protection, M/o Food, Agriculture &
Livestock.
Future Prospects
This sector lacks production of base chemicals. It is not possible to
manufacture all active ingredients in the country because of nonexistence of
petrochemical base. However, few ingredients can be produced in Pakistan
specially base chemicals used in the production of pesticides for the cotton crop.
Around US$ 1.0 billion (Rs 60 billion) is spent on cotton crop every year from
sowing to harvesting. The share of plant protection for cotton crop is 33% or US$
0.33 billion. This shows the importance and need for local pesticides industry. The
manufacturing of basic chemicals requires a comprehensive “Pesticides Policy” to
encourage investors to invest in the industry and provide quality pesticides to
farmers at affordable prices.
Tariff Structure
Present tariff structure of Pesticides is given in the table below:
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
Technical Materials (Raw Materials)
1 2926.9010
Alpha cyano, 3-phenoxybenzyl (-) cis, trans 3-(2,2-diclord vinyl) 2,2 dimethyl cyclopropane carboxylate
5
2 2926.9020 (S)-2-(4), chloro phenyl)-3 methyl butyrate 5
3 2926.9030 Cyano, 3-phenony benzyl 2,2,3,3 tetra methyl cyclopropane carboxalate
5
4 2930.2010 2-N, N-Dimethyl amino-1 sodium thiosulphate, 3- thiosulfourropane
5
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
5 2930.9010 2 N, N-dimethyamino 1,3 disodium thiosulphate propane 5
6 2930.9020 O, S-dimethyl phosphoroamidothioate 5
7 2930.9030 S-S (2 dimethyl amino (trim ethylene) bis (thio carbamate) 5
8 2930.9040 Diafethiuran technical itertbutyl) 3-2-6 disopropyl (4-phenoxyphenyl) thiourene
5
9 2930.9050 O-O diethyl O- (3,5,6 trichloro pyridinyl) phosphorothioate 5
10 2930.9060 O-(4-bromo, 2-chloro phenyl) o-ethyl s-propyl (phosphorothioate)
5
11 2930.9070 O,O diethyl O-(3,5,6-trichloro 2-pyridyl) phosphorothioate 5
12 2932.9910 2,3-dihydro 2-2 dimethyl-7 benzofuranyl methyl carbamate 5
13 2933.5910 O, Diethyl, O (2, iso propyl-6 methyl-pyrimidin-4-YL) phosphoro thioate
5
14 2933.5920 1-Tert, butyl-3 2,6 iso propyl 4-phenoxy phenyl thiourean 5
15 2933.7100 6-Hexanelactam (epsilon-caprolectam) 5
16 2903.6900 Other (O-ethyl S, S-di-sec-butyl Phosphoroddithioate) 10
17 2916.2000 Cyclonic, Cyclenic or Cycloterpenic monocarboxylic acids etc.
10
18 2918.9000 Other (4-chloro 2-methylphenoxyacetic acid) 10
19 2924.2100 Urines and their derivatives; salts thereof 10
20 2926.9090 Other Nitrile-function compounds 10
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
21 2930.9010 2 N, N-dimethylamino 1,3 disodium thiosulphate propane 5
22 2930.9030 S, S 2-dimethylamino (trim ethylene) bis (thiocarbamate) 5
23 2930.9090 Other (0,0-dimethyl-O- (1-methyl-2-methylcarbamoylvinyl phosphate)
10
24 2932.2900 Other lactones (4,5,6,7-tetrachloropthalide) 10
25 2932.9910 2,3-dihydro-2, 2-dimethyl-7-benzofuranyl (dibutylamine) thio) methyl carbamate
5
26 2933.2900 Other (Heterocyclic compounds with nitrogen hetero-atoms only 10
27 2933.3990 Other [3-(6-chloro-3-pyridinyl) methyl]-2-thiazolidinylidene]-cyan amide
10
28 2934.1000 Trnas-5- (4-chlorophenyl)-N-cyclohexyl-4-methyl-2-oxothiazolidine-3-Carboxamide
28
29 2934.9100 Furazolidone 10
30 2934.9990
Other: (S)-methy19-chloro-2,5-dihydro-2[[methoxycarbonyl)[4 (trifluoromethoxy) pheynyl]amino] carbonyl] indeno[1,2-e][1,3,4] oxadiazine-4a(3H)-carboxylate
10
Solvents:
31 2707.5000 Aromasol - H, Shellsol AB, Solvesso 100%, Aromatic C9 Petroleum Solvent
20
32 2710.1949 Shellsol D70 (K) 25 33 2902.4100 Xylene 5
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
34 2902.4400 Mixed Xylene isomers (Epichlorohydrine) 10
35 2905.3200 Propylene Glycol 10
36 2909.4900 Other (1-Methoxy 2-Propanol) 10
37 2914.1100 Acetone 25 38 2914.2200 Cyclohexanon 10 39 2914.2900 Other (Isophorone) 10 40 2917.3200 DOP 25
Emulsifiers:
41 1302.3900 Other (Biopolymer AG/Xanthanm Gum) 25
42 1518.0000 Animal or vegetable fats and oils and their fractions Rs 10800/MT
43 2905.3900 Other (Hexylene Glycol) 5 44 2926.9000 N-Methylpyrolidon 5
45 3402.1110 Sulphonic Acid (soft) 10
46 3402.1300 Non ionic organic surface-active agents (Emulsifiers) 20
47 3402.1910 CAPB (Emulsifier 1371 A, Sermul EA 88) 10
48 3404.9010 Prepared waxes including sealing waxes 20
Finished Products
49 3808.1010 Mosquito coils, mats and the like 25
50 3808.1020 Naphthalene balls 25
51 3808.1030 Sex pheromone 20 52 3808.1040 Para dichlorobenzene blocks 25
53 3808.1050 Preparations put up in retail packing 25
54 3808.1060 Pesticides 5
55 3808.1070 Phosphatic insecticides 5
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
56 3808.1090 Other 25 57 3808.2000 Fungicides 5
58 3808.3000 Herbicides, anti-sprouting products and 5
59 3808.4000 Disinfectants 25
60 3808.9000 Other 25
Crop Life Pakistan (formerly Pakistan Agricultural Pesticides Association, PAPA) 909-910, Park Avenue, P.E.C.H.S. Block-6, Sharah-e-Faisal, Karachi-75400 Phone: 92-21-4541572 Fax: 92-21-45461131 Email: [email protected]
PLASTICS AND RESINS
Plastics material being consumed in Pakistan includes thermoplastics and
thermosetting resins. Among the thermoplastics category bulk consumption is of
Polyethylene (PE), Polyvinyl Chloride (PVC), Poly Propylene (PP) and Polystyrene
(PS). The thermosetting resins being consumed are urea formaldehyde, phenol
formaldehyde, melamine formaldehyde and Polyester resins. The total
consumption of major thermoplastics (i.e. PE, PVC, PP, PS) in 2001-02 was
estimated to be 404,500 metric tons. With the exception of PVC, total
requirements of thermoplastics are being met through imports. In 2001-02
import bill of thermoplastics (including VCM and styrene) was estimated to be
over US$ 260.00 million.
Supply and Demand
A discussion on present and future demand pattern of each product group
is presented in the following paragraphs. The product-wise breakup is given in
the table below:
(000 M. Tons)
Estimated Demand Product Consumption
2001-02 2004-05 2009-10
Polyethylene (PE) 157.50 235.00 340.00
Poly Propylene (PP) 144.00 150.00 205.00
Polyvinyl Chloride (PVC) 78.00 95.00 120.00
Polystyrene (PS) 23.40 35.00 45.00
TOTAL 402.90 515.00 710.00
Source: ENAR Petrotech
Services
The thermoplastics consumption during last decade i.e. 1992-2002 has
increased on an average @ 8.5% per annum. PE is the leading thermoplastic
material being consumed with around 43% share in country’s thermoplastics
consumption, PP and PVC enjoy shares of 29% and 21% respectively. The
consumption of Polystyrene (PS) is relatively small as it has a share of around
6% in country’s thermoplastics consumption.
PE, the leading thermoplastic material, has established its usage in
packaging film, household articles, automotive and industrial parts. PP is used in
the form of woven bags and cloth, household articles, furniture and packaging
film, while the PVC usage include pipes, wires and cable, shoes sheets and
resins. PS is being consumed in electrical and electronic parts, household articles,
automotive parts and packing material.
Pak Petrochemical Industries, Karachi is producing polystyrene from
imported styrene. The polystyrene production capacity of the plant is 27,000
MTPY.
Basic raw materials for this group are being imported. PVC resin and some
plasticizers are being manufactured locally. PE, PP, PS resins are also imported to
manufacture down stream products. The down stream plastic industry itself
consists of thousands of units of all sizes in organized and un-organized sectors.
A break down of plastic materials with growth and their end uses in industries
are given below. Valika Chemicals, Karachi was producing polyethylene in 1960s,
which has since closed down. Now there is no plant producing polyethylene or
polypropylene. A plant, Northern Chemicals, was established near Fateh Jang in
recent past for the production of PE resin but due to unknown reasons it could
not initiate its production.
Breakdown of Plastic Materials with Growth
Plastics End Use Industries Growth
Poly Vinyl Chloride (PVC) Pipes, Artificial Leather, Cable Coating, Packaging, Footwear 10%
Polyethylene (PE) Film for Packaging, Bottles and Pipes 27%
Polypropylene (PP) Woven Bags, Auto Parts, Packaging, Pipes House ware and Medical Applications and pipes
17%
Polystyrene (PS) House & Sanitary Wares, Auto Parts, Electrical Parts
6%
Source: Plastic Manufacturers
Association
The import of plastic resins is very high because Pakistan lacks the
petrochemical base. The following table depicts the import trend.
Import trend of Plastic Resins
*July-December Source: Federal Bureau Of Statistics &
CBR. Plastic Manufacturers
Association
PVC Resin
(MTPY)
Year Polyethylene Polypropylene Polystyrene
1997-98 94,300 85,700 11,800
1998-99 126,500 99,300 16,400
1999-00 122,900 102,500 14,000
2000-01 154,900 109,500 10,700
2001-02 157,472 144,051 7,755
2002-03* 96,576 73,223 3,192
PVC is an important material used for wide range of applications. PVC is
used for doors, windows, pipes & fittings, profiles, food packaging, furniture,
electronic components, foot-wear and cables. The raw materials used to
manufacture Poly Vinyl Chloride (PVC) resin are Vinyl Chloride Monomer (VCM)
and Ethylene Di-Chloride. PVC resin is converted to various PVC compounds by
blending it with Di-Octyl Ortho Phthalate (DOP), stabilizers and pigments.
Pakistan PVC Ltd, Karachi which had a capacity of 6,000 MTPY is closed
since 1997. This was a grass root plant to manufacture PVC through acetylene
using Calcium Carbide as raw material.
Engro Asahi Polymer & Chemicals started its production in December 1999
at Port Qasim, Karachi. It has an installed capacity of 100,000 MTPY. The project
was completed at the cost of Rs 4.0 billion. The plant can produce 5 grades of
PVC resin and is based on imported VCM. The production and export of PVC
resin in the recent years is given below:
PVC Production and Export
(MTPY)
Year Production Export
2000 65,000 25,512
2001 68,600 12,900
2002 83,600 16,407
Source: Engro Asahi Polymer & Chemicals
The imports decreased since the commissioning of Engro Asahi PVC plant
and are given below:
Imports of PVC Resins
(M. Tons)
Year PVC Resin 1997-98 48,026 1998-99 68,213
1999-00 34,602 2000-01 19,268 2001-02 13,144
2002-03* 5,068 *July-December Source: Federal Bureau of Statistics
DOP (Di-Octyl Ortho Phthalate)
DOP is a general plasticizer, which is being manufactured by five big
industrial units. The major raw materials used for the manufacture of DOP are
Phthalic Anhydride and 2-Ethyl Hexanol. DOP is mixed with PVC resin to produce
PVC compounds, which are used for further processing and manufacturing of
PVC products.
Present capacity of DOP is about 100,000 MTPY but the demand is only
35,000 MTPY. Nimir, Qaiser LG, ATS Synthetic, Ravi Chemicals and Shafi
Chemicals are the major manufacturers of DOP.
Production capacity of major DOP units
(MTPY)
Name of Company Capacity
Qaiser L. G. Lahore 30,000
Shafi Chemical Industry Ltd. Lahore 17,500
Nimir Chemicals Pakistan Ltd. Lahore 15,000
A.T.S. Synthetic (Pvt.) Ltd. Lahore 14,040
Ravi Chemicals Lahore 5,000
TOTAL 81,540
Source: Manufacturers
Future Prospects
The installed capacity is much more than the demand as such no
immediate investment prospects.
Polystyrene
There is only one unit in Pakistan, Pak Petrochemical Industries (Pvt.)
Ltd., Karachi. This plant started production in 1987 with an initial capacity of
5,000 MTPY. The capacity was increased over the years and current capacity is
27,000 MTPY. Polystyrene is being produced from imported bulk styrene. They
are producing three grades of polystyrene, which includes general purpose, high
impact and expandable polystyrene.
(M. Tons)
Year Production Import Consumption
1997-98 1,470 11,798 13,268
1998-99 1,302 16,387 17,689
1999-00 1,017 14,452 15,469
2000-01 11,627 18,938 30,524
2001-02 16,394 7,756 23,398
Source: Federal Bureau of
Statistics
Pak Petrochemcial (Pvt.) Ltd.
Future Prospects
The country’s present demand is around 35 - 40,000 MTPY. This plant
caters to 75% of the country’s demand. Any future expansion would be easier
for the existing plant as plant carries high technology and the cost of a new set
up would run in million of dollars. However, styrene can be made available
locally if a Petrochemical base is established.
Unsaturated Polyester Resin
These are used to make buttons and glass reinforced plastics. Their
installed capacity is 14,000 MTPY while actual production is 3,000-4,000 MTPY.
These are prepared from Phthalic anhydride, maleic anhydride, glycols,
isophthalic acid and adipic acid.
Production Capacity
The production capacity of the plants is as under:
(MTPY)
Name of Company Rated Capacity Current
Production
2001-02
Delta Industries (Pvt.)
Ltd.
Lahore 2,400 1,100
BASF Pakistan Ltd., Karachi 3,600 1,500
BASFA, Lahore 2,400 500
Al-Khair, Karachi 2,400 500
Polymer Industries, Gujranwala 1,200 380
Indu Resin Karachi 1,200 120
Mirza Jee, Multan 480 40
Total 13,680 4,140
Source: Delta Industries (Pvt.)
Ltd.
Future Prospects
The installed capacity is more than the demand which is around 5,000
MTPY as such there is no room for future investment at the present.
Polyurethane
Polyurethane is used for the manufacture of foam products such as
Mattresses, Sofa cushions, car seats and other furniture applications. The main
foam producers along with their production capacities are given below:
Unit Production Capacity
Master Molty Foam (Pvt.) Ltd, Karachi and Lahore 2,500Diamond Foam (Pvt.) Ltd., Karachi and Lahore 1,500
Al-khair Foam (Pvt.) Ltd., Lahore 1,000Uniforam (Pvt.) Lahore 500Mehran Foam (Pvt.) Ltd. Karachi 600Vohra Foam (Pvt.) Ltd., Karachi 300
TOTAL 6,400Source: Respective Manufacturers
Raw Material
Polyurethane is being manufactured by mixing Polyols and ISO cyanides in
the ratio of 40:60. Both of these are being imported.
Imports
Imports of Polyurethane for the last five years is given below:
Tons Million Rs.
Year Quantity Value 1997-98 1,091 94 1998-99 1,206 120 1999-00 1,801 181 2000-01 2,206 242 2001-02 2,583 263 2002-03* 1,307 148
*July-Dec. Future Prospects
Keeping in view the import and local production, it is worthwhile to
conduct a feasibility study for the manufacture of basic raw material for
Polyurethane.
Alkyd Resin
Alkyd resins are the most important class of protective coatings and they
are used in the manufacture of enamel paints. The raw materials for making
alkyd resin are Phthalic Anhydride, Soya oil, Coconut oil, Glycerine, Xylene etc.
Production Capacity
Apart from a number of manufacturers in un-organized sector, there are
thirteen known units manufacturing alkyd resins. Their production capacities are
given below:
(MTPM)
Manufacturing unit Installed capacity ProductionDelta Industries Lahore 600 580
Nimir Resins Ltd. Sheikhupura 551 228
Berger Paints Pakistan
Ltd.
266 171
Royal Resin Lahore 266 171
Complex Chemical, Hattar 181 76
BASFA, Lahore 85 38
Premier Resin Lahore 85 38
Shalimar Polymer Ind. Lahore 266 133
Shalimar Resin Lahore 85 38
Millat Industries Lahore 181 76
Champion Paint Ind. Lahore 85 38
Crona, Lahore* 48 19
Impex Resin Lahore 181 38
Total 2,880 1,644*Temporary closed. Source: Delta Industries (Pvt.)
Ltd.
Imports
In spite of excessive installed capacity in the country, small quantity of
Alkyd Resin is being imported as shown below in the table:
(M. Tons) (Million Rs.)
Year Quantity Value
1997-98 101 10
1998-99 53 7 1999-00 70 9 2000-01 57 11 2001-02 139 15 2002-03* 24 3
*July-December Source: Federal Bureau of
Statistics
Future Prospects
The installed capacity is more than the demand which is around 5,000
MTPY as such there is no room for future investment at the present.
BOPP Film (Biaxially Oriented Polypropylene)
BOPP film is used in wrapping lamination and it is made from the
polypropylene polymer. Three plants are manufacturing BOPP locally. Detail is as
under:
(MTPY)
Name Capacity
Tri-Pak Films Ltd. Hattar 12,000
Macpac Films Ltd. Karachi 3,500
Metaplas (Pvt.) Ltd. Karachi 3,000
TOTAL 18,500
Future Prospects
Tri-Pak Films Ltd. are planning to put a new plant of BOPP film at Karachi
having a capacity of 12,000 MTPY. This shall be completed within two years
time. Metaplas (Pvt.) Ltd. are planning to expand the capacity by 7,000 MTPY.
Keeping in view of the above expansion, the sector carries sufficient
capacity to meet the local demand.
Plastic Processing Industry
Plastic materials are processed or fabricated into final products. As such,
the processing industry serves as ‘go-between’ the plastic materials producers
and end-users. In many developing countries, the processing industry has
preceded the plastic materials production, same is the case in Pakistan.
Pakistan’s plastic processing industry consists of thousands of large,
medium and small processors. The industry is divided into organized and
unorganized sector and is equipped with imported and locally manufactured
machinery. It produces various types of plastic products ranging from packaging
film to pipes, wires and cables, industrial and automotive parts. The types of
processes being employed by the industry include extrusion, blow and injection
moulding and calendaring, etc. The total plastic materials processing capacity in
the country is estimated to be around 500,000 MTPY.
The estimated shares of major processes employed by the industry are as
follows:
Share in Total Processing Capacity
Process Injection Moulding
Blow Moulding
Extrusion Woven Bag
Packaging film & Misc.
Total
%age share 50 10 15 05 20 100
Source: ENAR Petrotech
Services
The injection and blow moulded products include household articles,
automotive or industrial parts, bottles, containers, shoes, etc. The products made
by employing extrusion process include packaging film, pipes, wires, cables and
woven bags or cloths.
Future Prospects
Petrochemical complex if and when established can provide raw material
for all these products for import substitution.
Tariff Structure
Present tariff structure of PVC and Polymers is given in the table below.
Poly Vinyl Chloride (PVC) Chain
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
Basic Raw Materials 1 2901.2100 Ethylene 5 2 2903.1500 Ethylene Dichloride (EDC) 10 3 2903.2100 Vinyl Chloride Monomer(VCM) 5
Chemicals and Catalysts 4 2907.2300 Bisphenol-A 10 5 2907.2900 Other Poly-Phenols 10 6 2915.9000 Other (catalyst peroxides) 10 7 2918.2900 Other Salicylic acid and its salts 10
8 2928.0090 Other(Organic derivative of hydrazine or hydoxylamine) 10
9 2930.9090 Other(organ-sulfur compounds) 10
10 3905.3000 Poly vinyl alcohol( PVA) - suspension agent 10
11 3909.4000 Phenolic Resin (anti-fouling agent) 25
12 3824.9030 Prepared Binders (condensate treatment) 20
13 3824.9091 Other prepared binders (scale corrosion inhibitor) MDI 5
14 3824.9099 Other prepared binders (scale corrosion inhibitor) 25
CD is 10% for pharmaceuticals vide SRO.372 (1)/2002.
Intermediate
15 3904.1000 Polyvinyl Chloride (PVC) 25
10% duty on medical grade PVC if imported for disposable syringes vide SRO 358(1)/2002.
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
16 3904.6900 Other polymers (PE, PP, etc.) 20
Raw Materials for PVC Compounds
Phthalate Based Plasticizers 17 2917.3200 DOP (Dioctyl OrthoPhthalate) 25
18 2917.3300 Dinonyl or didecyl ortho-phthalate(DINP/DIDP) 25
19 2917.3400 Others(Ester of Ortophtalate acids) 25
Non-Phthalate based Plasticizers
20 3812.2000 Compound platicizers for rubber & plastics 25
21 3824.9091 Other prepared binders (scale corrosion inhibitor) MDI 5
22 3824.9099 Other prepared binders (scale corrosion inhibitor) 25
10%CD for pharmaceuticals vide SRO. 372(1)/2002.
Stabilizers (individually or as ‘one pack” systems)
23 3812.3000 Anti-oxidising preparations & compound stabilizers 20
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
Color Pigments
24 2803.0010 Carbon Black (Rubber grade) 25
25 2803.0020 Acetylene Black 10
5% CD on Acetylene Black for battery cells vide SRO. 358 (1)/2002.
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
26 2803.0090 Other Carbon Black 20 27 2823.1010 Titanium oxides 10
28 3204.1700 Pigments and Preparations thereon 20
10% CD for printing ink vide vide SRO.358 (1)/2002.
29 3206.1100 Titanium Di Oxide(80% & above) 10
10% CD for printing ink vide vide SRO.358 (1)/2002.
30 3206.1900 Other Titanium di-oxide 20
10% CD for printing ink vide vide SRO.358 (1)/2002.
31 3206.2010 Chrome Yellow 20
10% CD for printing ink vide vide SRO.358 (1)/2002.
32 3206.2090 Other Chrome Yellow 20
10% CD for printing ink vide vide SRO.358 (1)/2002.
33 3206.4100 Ultramarine 20
10% CD for printing ink vide vide SRO.358 (1)/2002.
34 3210.0020 Prepared water based pigments 20
Fillers
35 3824.9091 Other prepared binders (scale corrosion inhibitor) MDI
5
36 3824.9099 Other prepared binders (scale corrosion inhibitor)
25
10% CD for pharmaceuticals vide SRO.372 (1)/2002.
37 2836.5000 Calcium Carbonate (plain) 10
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
38 2836.???? Calcium Carbonate (coated)
Lubricants
39 1518.0000 Animal and Vegetable Fats and Oils (Epoxidised Soyabeen Oil)
Rs.10,800/MT
40 2712.2000 Paraffin Wax (Micro crystalline/other) 20
Semi Finished
41 3904.2200 PVC Compound 20
42 3915.3000 PVC Scrap 25
Tariff for Plastics (Polymers)
S.No. HS Code Commodity Description
Custom Duty 2002-03 Comments
Basic Raw Materials 1 2901.2100 Ethylene 5 2 2901.2200 Propylene 5 3 2902.5000 Styrene 5
Intermediate Raw Materials 4 3901.1000 Polyethylene 20
5 3902.1000 Polypropylene 20
C. Duty @10 % for manufacture of disposable syringes & needles, vacuum flasks and printing ink vide SRO.358 (1)/2002.
Semi Finished
6 3901.9000 Polyethylene Compounds 20
7 3902.3000 Polypropylene Copolymers 20
10% CD for manufacture of printing ink vide SRO.358 (1)/2002.
8 3902.9000 Polypropylene Compounds 20
10% CD for manufacture of printing ink vide SRO.358 (1)/2002.
9 3903.1100 Expandable polystyrene 20
10 3903.1900 Other (General Purpose and High Impact Polystyrene)
20 10% CD for audio / video cassettes vide SRO.358 (1)/2002.
11 3903.9000 Others (MBS copolymer) 20
10% duty if used for ribbons of typewriters/computer printers. vide SRO.358(1)/2002.
S.No. HS Code Commodity Description
Custom Duty 2002-03 Comments
Finished 12 3920.2010 BOPP Films 25 13 3920.4300 Plastic Sheets (Rigid) 25 14 3920.4900 Plastic Films (Flexible) 25
15 3921.1100 Plastic Sheets (Polystyrene) 25
16 3921.1200 Plastic Sheets (Vinyl Chloride) 25
17 3921.9000 Plastic Films (Other) 25
C. Duty 10% for toe puff material & disposable syringes and 20% CD on aluminium foil PE laminated sheets vide SRO.358 (1)/2002
18 5906.9900 Semi Conducting Tape 25
19 6305.3300 Polypropylene woven sacks 25
C. Duty 10% for import of Jumbo bags (One Ton or more) for ICI for packaging of PTA
vide SRO.358 (1)/2002
Glass Reinforced Fiber
1 6815.1000 Carbon fiber 5
2 7019.3100 Glass Fibers Mats 10
Tariff of Plasticizers / Resins
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
Basic Raw Materials 1 1507.1000 Crude Soyabeen Oil Rs.9,050/MT
2 2902.4100 Ortho-Xylene 5
Intermediates/Semi-Finished 3 1513.1100 Crude Coconut Oil Rs.9,500/MT
4 1516.1000 Hydrogenated Fat Oils Rs.10,200/MT
10% CD for manufacture of drugs vide SRO.372 (1)/2002.
5 2707.3000 Xylole 10 6 2710.0000 Mineral Turpentine (MTT) N/A 7 2823.0000 Titanium oxides 0
8 2905.1600 2-Ethyl Hexanol (Octyle alcohol & isomers) 5
9 2905.3200 Propylene Glycol (Industrial) 10
10 2905.4200 Mono Pentaerythritol 10 11 2909.4100 Diethylene Glycol 10 12 2917.1400 Maleic Anhydride 10
13 2917.3200 DOP (Dioctyl Ortho Phthalate) 25
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
14 2917.3500 Phthalic Anhydride 25 Customs Duty 20% f vide SRO.358 (1)/2002.
15 2917.3900 Isophthalic Acid(IPA) 10
Customs Duty 10% for manufacture of drugs vide SRO.372 (1)/2002.
16 2922.1900 Amino Ethyl/Ethanol Amine (Other) 10
17 3402.1300 Non-Ionic Surface Active Agent (Bulk) 20
Custom duty 5% for pesticides vide SRO.358(1)/2002 and 10% for drugs vide SRO.372(1)/ 2002.
18 3402.1910 Other Surface Active Agents(CAPB) 10
19 3907.5000 Alkyd Resin 25
20 3907.9100 Un-Saturated Polyester Resin 25
End Use 21 3209.1000 Enamel Paint 25
22 3209.9000 Other Paints/ Emulsions/Hardeners/ Varnishes
25
23 3402.1200 Surface Active Agents (Bulk) 20
Custom duty 5% for pesticides vide SRO.358(1)/2002 and 10% pharmaceutical products vide SRO.372 (1)/2002.
24 3402.9000 Organic surface Active Agent (Detergents for Textile Industry)
20
Custom duty 20% on pearlizer and Sodium Lauryl ether vide SRO.358 (1)/2002 for Shampoo and 10% CD for drugs vide SRO.372
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
(1)/2002.
25 3809.9100 Products of a kind used in Textile or like industries. 20
26 3823.1100 Stearic Acid 25
Pakistan Plastic Manufacturers Association Mashriq Shopping Centre, 4th Floor ST-6/A Block 14, KDA Scheme No.24, Sir Shah Mohammad Suleman Road Karachi Tel: 92-21-4942336 Fax: 92-21-4944222
PAINTS AND VARNISHES
Paints are colored & opaque coatings while varnishes are clear coatings.
In Pakistan, they are categorized in three major segments.
o Decorative – household paints.
o Industrial & Automobile paints
o Refinish Paints – For repair and renovations.
The total market has been generally stagnant over the past 3-5 years. The
industry is fragmented with a large number of manufacturers and outlets all over
Pakistan. The market is predominantly unorganized.
Raw Materials
The raw materials for the manufacturing of paints and varnishes include
resin binder chemicals such as Alkyd resins, Phthalic anhydride, Soya bean oil,
Linseed oil, Coconut oil, Vinyl Acetate Monomer (VAM), Glycols, Poly Vinyl
Acetate (PVA) emulsion, Nitrocellulose, Plasticizers, Stabilizers, Pigments such as
Titanium Dioxide, Lithopone, Organic pigments, Iron Oxides, Chromes etc. and
solvents such as Xylene, Toluene, Butyl Acetate, Methyl Acetate, Ketone, mineral
spirits. Only 5% of the raw materials are locally available while 95% are
imported.
Production Capacity
There are three major producers of paint in the country and they together
meet the 45% local requirement. Remaining 50% demand is met by the
unorganized sector and 5% through imports. The imports of paints are negligible
and almost all demand is being met by local producers. Major local paint
manufacturers include ICI Pakistan, Berger Paints and Buxly Paints. There are
over 400 units manufacturing paints and varnishes in the unorganized sector.
Production of major local plants are given below:
Production of Paints
Million liters/year
Name of Company 2001 2002
ICI Pakistan 12.0 15.80
Berger Paints 7.5 8.20
Buxly Paints 1.0 1.10
Total 19.5 25.10
Source:
Manufacturers
Note: The capacity of plant is indeterminable as it is a multi-product plant involving
varying processes of manufacturing.
ICI Pakistan in Lahore is the biggest paint manufacturing plant in the
country and actually caters for 30% of the local market. Its capacity is to
produce 7 million liters per year water based paints, 2 million liters per year oil
based paints and 1 million liters per year epoxy and poly urethane chlorinated
resins, inorganic zinc silicates and acrylic paints.
Berger Paints Pakistan Ltd. is the 2nd biggest paint manufacturing facility
in Pakistan. It started its manufacturing facility in 1955 at Karachi. Berger can
manufacture industrial and automotive paints also.
At Buxly Paints, about 70% of paint produced is water based, 20 - 25% is
oil based and 5% is special epoxy and poly urethane resin for industrial use.
Six manufacturers of decorative paints are ICI Pakistan, Berger Paints,
Buxly Paints, Master Paints, Brighto & Gobbis.
The industrial paints segment has a large number of applications and
uses. Major players in this segment are ICI Pakistan and Berger Paints. Some
industrial paints are imported.
Import of Paints & Varnishes
(M.
Tons)
(Million
Rs.)
Year Quantity Value
1997-98 3,230 354
1998-99 3,281 385
1999-00 3,074 352
2000-01 3,364 485
2001-02 6,600 471
2002-03* 1,725 219
*July-December Source: Federal Bureau of
Statistics
The refinish segment caters the requirements for maintenance of vehicles.
Major players in this segment are ICI Pakistan, Berger Paints and Champion
Paints.
Oxyplast Karachi has the facility to produce powder coating paints. The
raw materials are Polyester resin, Epoxy resin, Barium Sulphate, Titanium Oxide
and curing agents.
Supply & Demand
Total demand in Pakistan is approx. 60 million liters and it is mostly met
by local production. During 2001-02, the imports in this sector were around 5
million litres valued at Rs 471 million.
The paint units reporting their production to the Federal Bureau of
Statistics increased from 142 in 1997-98 to 306 in 2001-02, which represents
about 75% of all units in the country. The historical production data for few
years is given below:
Production of Paints & Varnishes
Production of Paints & Varnishes Year
Thousand Liters M. Tons
1997-98 19,833 5,917
1998-99 21,149 6,501
1999-00 20,749 7,347
2000-01 33,152 10,922
2001-02 27,300 10,341 Source: Federal Bureau of
Statistics
The decorative paints market has been declining since 1999. The
documentation drive in 2000 caused a decline in volume and the industry
remained stagnant in 2001. The market is expected to grow at a rate of 3%.
The industrial paints market is rising primarily due to the increased
demand from the automotive sector. This sector uses state of the art
electrophoretic and basecoat-clear systems. These are high tech sophisticated
systems requiring licensing from major Japanese companies.
The refinish paints demand is expected to remain stagnant or decline due
to a shift to higher performance coatings. Nitrocellulose paints which were the
mainstay are declining rapidly and are being replaced by 2 pack acrylic-
polyurethane paints as the latter are more suited to repair painting of basecoat-
clear coat used by most automotive assemblers.
Powder Coating Chemicals
The recent trend in the world is to apply powder coating instead of liquid
paints and there are a lot of chemicals required for preparation of metal sheet
before powder coating. These chemicals are basically known as pre-treatment or
phosphating chemicals, which include degreasing, phosphating Anodizing
chemicals etc. There are a number of small units producing above chemicals in
Lahore and Karachi catering to the local manufacturers of home appliance like
Dawlance, Waves and Multinationals including car makers like Toyota, Honda,
Suzuki, etc.
Future Prospects
The current production is sufficient for local demand. However, the raw
material used in this sector are being imported and comes from Petrochemical
base, setting up of a Petrochemical base would help backward integration in this
sector resulting in industrial growth.
Pakistan Paint Manufacturers Association,
ST-6/4, Block 14, Federal B Area,
Karachi
Phone: 92-21-6321103
Fax:92-21-2560468
Tariff Structure
The present tariff structure of Paints is given in the table below:
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
Raw Materials
1 1504.2000 Fish Oil 10 2 1506.0000 Other Animal Fats 10 3 1513.1900 Other Rs.10,800/MT
4 1515.1900 Linseed Oil Refined Rs.10,800/MT 10% CD for drugs vide SRO.416 (1)/2001
5 1515.3000 Castor Oil Refined Rs.10,800/MT 10% CD for drugs vide SRO.416 (1)/2001
6 1515.4000 Tung Oil Rs.10,800/MT
7 1516.2000 Vegetable fats & oils Rs.10,200/MT 10% CD for drugs vide SRO.416 (1)/2001
8 1520.0000 Glycrine 25 9 2530.9090 Turkey Burnt Umber 20
10 2615.1000 Zirconium ore & concentrates 5
11 2707.3000 Xylole 10 12 2707.9910 Carbon black feedstock 10 13 2708.1000 Pitch 10 14 2714.9000 Glsonite -Asphalt 25
15 2809.2010 Phosphoric Acid 10
C. Duty zero% for phosphatic fertilizer vide SRO. 358 (1)/2002.
16 2817.0000 Zinc Oxide 10 17 2824.1000 Litharge 10
18 2826.9000 Sodium Floroborate (Other) 5
19 2827.2000 Calcium Chloride 5 20 2833.2100 Magnesium Sulfate 10 21 2833.2990 Cobalt Sulfate 10 22 2839.1910 Sodium Silicate 10 23 2901.2200 Propylene 5 24 2902.3000 Toluene 5
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
25 2902.5000 Styrene 5 26 2905.1220 Isopropyl Alcohol 10 27 2905.1300 N. Butanol 5 28 2905.1400 ISO Butanol 5 29 2905.3200 Proplene Glycol industrial 10 30 2905.4100 Trimthylol Propane 10 31 2905.4200 Mono Pentaerthritol 10 32 2905.4500 Glycerine* (Glycerol) 25 33 2906.2100 Benzyl Alcohol 10
34 2907.2300 Bisphenol-A (Diphenylol- Propane ) 10
35 2909.4100 Di Ethylene Glycol 10
36 2909.4300 Mono-Butyl Ethers of Ethylene glycol or of Di-Ethylene glycol
10
37 2909.4400 Ethyl Carbinol Acetate/ Ethyl Glycol* 10
38 2909.4900 N.Hexyl Cellosolve 10 39 2912.1100 Formaldehyde 10 40 2912.6000 Para-formaldehyde 10 41 2914.1100 Acetone 25 42 2914.1200 Methyl Ethyl Ketone 10 43 2914.1300 Methyl Isobtyl Ketone 10 44 2914.2200 Cyclo Hexanon-Sextn 10 45 2914.2900 Isophrone 10 46 2914.4000 Di-acetone Alcohol 10
47 2915.3100 Ethyl Acetate 20 10% CD for drugs vide SRO.372 (1)/2002
48 2915.3200 Vinyl Acetate Monomer 5 49 2915.3300 n-Butyl Acetate 25
50 2915.3990 Ethyl Glycol Acetate/Celosolve Acetate 10
51 2915.6000 Butyric acids,valeric acids/their salts & esters. 10
52 2915.7010 Srearic Acid 25
53 2915.9000 Other (Ester of acetic acid) 10
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
54 2916.1100 Acrylic Acid 5
55 2916.1200 2-EHA (Ethyl Hexyl Acrylate ) & Butyl Acrylate 5
56 2916.1300 Methacrylate 5 57 2916.1400 Methyl Methacrylate 5 58 2916.3110 Benzoic Acid 10 59 2917.1400 Maleic Anhydride 10
60 2917.3100 Di Butyl Phthalate 25 10% CD for drugs vide SRO.372 (1)/2002
61 2917.3500 Phthalic Anhydride 25 20% CD vide SRO.358(1)/2002
62 2917.3900 ISO Phthalic Acid 10 10% CD for drugs vide SRO.372 (1)/2002
63 2921.4200 Sulphanilic Acid 10 64 2921.5900 Di Amino Stilbene 10 65 2922.1200 Di Ethanol Amine 5
66 2922.1900 Amino Ethyl Ethanol Amine 10
67 2924.1000 Acrylic Amides 5 68 2926.1000 Acrylonitrile 5 69 2926.2000 Di Cynadiamide 10 70 2933.6100 Melamine Powder 10 71 2933.6900 Others (Cyanuric Chloride) 10
72 3204.1700 Pigments and Preparations thereon 20
10% CD for footware and printing ink vide SRO. 358(1)/2002
73 3204.2000 Fluorescent Brightening Agent 20
74 3204.9000 Other synthetic coloring matter 20
75 3206.1100 Titanium Di Oxide(80% & above) 10
76 3206.1900 Other Titanium di-oxide 20
77 3206.2010 Chrome Yellow 20 10% CD for printing ink vide SRO.358 (1)/2002
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
78 3206.2090 Other Chrome Yellow 20 10% CD for printing ink vide SRO.358 (1)/2002
79 3302.9000 Mixture of Odoriferous Substances 20
Customs Duty 10% for manufacture of toilet soap vide SRO.358 (1)/2002
80 3402.1110 Sulphonic Acid (soft) 10
81 3402.1190 Anionic surfactant in less than 10kg packing 25
82 3402.1300 Organic surface active agents-Nonionic 20
10% CD for drugs vide SRO.372 (1)/2002
83 3404.2000 Waxes of poly Ethylene Glycol 10
10% CD for drugs vide SRO.372 (1)/2002
84 3501.1000 Casein 20
85 3507.9000 Enzymes for garment washing 10
86 3806.1000 Rosin 20
CD @10% for manufacture of chemical resin vide SRO.358 (1)/2002
87 3808.9000 Biocide 25
88 3809.9100 Softeners & Dye fixing agents 20
89 3809.9300 Finishing Agent for leather 20 90 3823.1300 Tall oil fatty acids 25 91 3823.1910 Palm Fatty Acid Distillate 20 92 3824.2000 Naphthanic Acid 20
93 3912.3100 Carboxy Methyl Cellulose & its salts 20
10% CD for drugs vide SRO.372 (1)/2002
94 3912.3900 Other carboxy-methyl cellulose 10
10% CD for drugs vide SRO.372 (1)/2002
Semi-Finished
95 3206.4900 Inorganic Coloring Matters 25 10% CD for printing ink vide SRO.358 (1)/2002
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
96 3206.5000 Inorganic Coloring Matters 25 10% CD for printing ink vide SRO.358 (1)/2002
97 3211.0000 Dryers 25 10% CD for printing ink vide SRO.358 (1)/2002
98 3212.9010 Paste 20 99 3214.1000 Resin Cement (putty) 25
100 3402.1300 Non- Ionic Surface Active Agents (Bulk) 20
C. Duty is 5% for pesticides vide SRO. 358(1)/2002 and 10% for drugs vide SRO.372 (1)/2002.
101 3402.1910 Other Surface Active Agents (CAPB) 10
102 3403.9110 Fat Liquours 20 103 3404.9010 Paraffin Wax 20
104 3404.9090 Synthetic Wax 20 10% CD for printing ink vide SRO.358 (1)/2002
105 3808.2000 Anti Bacterial /Fungicide/ Biocides 5
106 3824.9091 Other prepared binders (scale corrosion inhibitor) MDI
5 10% CD for drugs vide SRO. 372(1)/2002.
107 3824.9099 Other prepared binders (scale corrosion inhibitor) 25
10% CD for drugs vide SRO. 372(1)/2002.
108 3904.1000 Polyvinyl Chloride (PVC) 25
10% C.Duty for disposable syringes vide SRO.358 (1)/2002
109 3904.4000 Vinyl Chloride copolymers 20 110 3905.1200 PVA/ Acrylic Copolymers 25 111 3905.9000 Laroflex MP 35 20 112 3905.9100 Butryl Resin 20
113 3906.9090 Other (Acrylic Polymer in primary form) 20
10% CD for drugs vide SRO.372(1)/2002.
114 3907.9100 Unsaturated polyster resin 25
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
115 3907.3000 Epoxy Resin 20
116 3907.9900 Polyester Resins Powder Coating 25
117 3907.5000 Alkyd Resin 25 118 3909.2000 Melamine Resin 25 119 3909.4000 Phenolic Resin (Powdered) 25 120 3909.5000 Polyurethane Resin 20
121 3910.0000 Silicone Resin 10
5% CD for manufacture of vacuum flask vide SRO. 358(1)/2002 and 10% for drugs vide SRO.372 (1)/2002
122 3911.1010 Petroleum Resin 20 123 3911.9000 Other Petroleum Resin 20
124 3912.2000 Nitro Cellulose 20 10% CD for printing ink vide SRO.358 (1)/2002
125 7018.2000 Glass Microsphere 20
Finished
126 3208.1000 Paints and varnishes based on polyesters 25
127 3208.9000 Other Paints 25
10% Customs Duty for manufacture of PU paint vide SRO.358 (1)/2002.
128 3209.9000 Other Paints/Emulsions/ Hardeners/ Varnishes 25
129 3210.0090 Other Paints 25
OLEO CHEMICALS
Oleo Chemicals are one of the important sectors of any modern economy,
as these are used in various important consumer items. These comprise Distilled
Fatty Acids (DFA), Fractionated Fatty Acids (FFA), Fatty Alcohols, Fatty Amines,
Fatty Esters, Fatty Nitriles, etc.
Oleo Chemicals are derived from various oils and fats and they are a
renewable source. Almost all types of oils and fats may be used to produce oleo
chemicals. The major advantage of oleo chemicals is their bio degradability.
These are much more environment friendly as compared to other groups of
chemicals.
Oleo chemicals are used in soaps (laundry and detergent), shampoos,
cosmetics, skin care products, pharmaceuticals, detergents, plastics and a
number of other industries.
Raw Materials
The basic raw materials, most commonly used are, Palm Stearin,
Soyabean Oil, Coconut Oil, Palm Kernel Oil, Tallow, Cottonseed Oil, Rapeseed Oil,
etc. Some vegetable oils contain more of certain acids than other vegetable oil,
so raw material selection depends upon type of products to be produced. Some
important specifications, which influence the application of the particular oil, are:
o Iodine Value (measure of degree of un-saturation),
o Saponification Value (type of fatty acids present in an oil),
o Acid Value (quantity of free fatty acids),
o Titre (physical appearance of oil at room temperature).
All the above specifications depend upon the particular fatty acid
composition of any oil.
Technical Know How
Globally, Italian and German companies are pioneers in commercial plants
technical know how for oleo chemicals. Recently Malaysian companies are also
progressing in this field and they have come up with a diversified application of
fatty acids in various fields. At present, their research work is centered around
Palm Oil and its derivatives.
Pakistan has an opportunity to collaborate with such companies to acquire
the necessary technical know, for processing and application of oleo chemicals.
Manufacturers of Oleo Chemicals
Crystal Chemicals, Lahore was the first oleochemical plant installed in
Pakistan in 1987 and continued its operation till 1997. This plant was producing
Stearic Acid and Soaps.
Nimir Industrial Chemicals Limited, Lahore were the second to install an
olechemical plant in the country in 1998. This plant is still operative and
produces Stearic Acid and Distilled Fatty Acids.
A third plant by the name of Gamalux Oleochemicals is being installed at
Karachi. This plant shall produce Distilled Fatty Acids.
There are other plants, being planned in Pakistan, which are expected to
be installed in near future.
Future Prospects
Oleochemicals are intermediate products, being used in various consumer
products. So, Pakistan, being a population of 144 Million is naturally a major
market for oelochemicals. So far, only Distilled Fatty Acids, Glycerin and Stearic
Acid are being produced in Pakistan and these are being used in Soaps,
Cosmetics, Rubber and Skin Care products. Pakistan’s present production
capacities are capable of meeting only a fraction of country’s demand. No
fractionated fatty acids, fatty alcohols and fatty esters are being produced in
Pakistan so far. These products are highly value added and have specific
applications in Cosmetics, Detergents and Skin Care products. So there is great
scope of fractionated Fatty Acids, Fatty Alcohols and other highly value added
oleochemicals in next decade.
Similarly, the production base of Distilled Fatty Acids is likely to expand to
many times in near future.
SOAPS, DETERGENTS AND COSMETICS
Soaps
Soaps and detergents are surface acting agents used for cleaning
purposes. Basic raw materials for soap are tallow, palm stearin and caustic soda.
These can be converted to:
o Laundry Soap by adding fillers like soda ash, kaoline, silicate etc.
o Carbolic Soap by adding fillers like silicate and components like crude coconut oil, RBD palm kernel oil etc.
o Toilet Soap by adding components like crude coconut oil, RBD palm kernel oil, odoriferous materials.
In order to manufacture toilet soaps, tallow or palm oil is consumed 80%
while 20% of coconut oil or palm kernel oil is used. Laundry soap contains 7-8%
coconut oil and the balance is tallow or palm oil by products.
Production Capacity
There are several units in the organized as well as unorganized sector
involved in the manufacture of soap, both toilet and laundry. The yearly
production data of toilet soap reported by 22 reporting units is listed below:
Production of Toilet Soap
(M. Ton)
Year Toilet Soap
1997-98 73,051
1998-99 76,166
1999-00 83,335
2000-01 70,689
2001-02 75,774
2002-03* 50,000
*July-Dec. Source: Federal Bureau of Statistics Unilever Pakistan Ltd. (2002-03*)
Toilet soap market is expected to grow at a rate of 3%. Therefore, the
projected demand of toilet soap in 2004-05 is 82,000 MTPY.
Laundry soap segment will continue to decrease because of popularity of
washing powders in urban areas. The demand has already fallen from 410,000
MTPY in 1997-98 to 349,000 MTPY in 2001-02. The projected demand for
laundry soap in 2004-05 is likely to be 315,000 MTPY.
Future Prospects for Export
Pakistan with its large population coupled with the country’s strong local
manufacturing base, experience and its location has a great potential for
becoming an international player and large exporter of soap.
The main raw materials for soap manufacturing besides Tallow are Palm
Stearin (a more economical Tallow substitute), Palm Kernel Oil and Coconut Oil,
for which the following duty structure prevails:
Duty Structure (Rs. /Ton) Product Duty , 2002-03 Ad. Val. Duty Palm Stearin 10,800 43% Palm Kernel Oil 10,800 (originally 15% ad. val.) 33% Coconut Oil 9,500 (originally 10% ad. val.) 31%
Imported soap is charged a duty of only 25% whereas the duty on above
raw material is 31-43%, leading to a serious policy anomaly in which local
manufacturing industry is hurt.
If local manufacturers are allowed to import Palm Stearin, Palm Kernel Oil
and Coconut oil at the same duty rate as tallow i.e. 10%, this will allow soap
industry to compete more effectively against imported and smuggled soap and
thereby grow the manufacturing base. This growth of the Pakistan Soap industry
will provide the much needed impetus to Pakistan’s nascent Chemical Industry,
which will then have a large domestic demand to cater for.
Detergents
Basic raw materials for detergents are Linear Alkyl Benzene (LAB)
Sulfonates, Sodium Sulfate, Sodium Silicate, Bleaching powder, Rock salt, Caustic
soda and Soda ash. The demand is on rise in the urban areas due to ease of
applications and effectiveness.
Production Capacity
Colgate-Palmolive is the leading manufacturer of Detergent Powders in
the Country with present production capacity of 30,000 MTPY. They are the only
manufacturer of Sulfonic acid in the country. The production capacity of Sulfonic
acid based on SO3 Gas and Sulfur is 3,600 MTPY. This capacity is not sufficient to
meet their present requirement and are importing around 3,000 ton of Sulfonic
acid. The country’s total requirement for Sulfonic acid is estimated to be around
20,000 MTPY.
Colgate-Palmolive (Pakistan) Ltd. has started work on a new plant to
manufacture Sulfonic acid with an investment of Rs 200 million. With this
expansion, they would have additional capacity of 20,000 tons of Sulfonic acid,
which will be sufficient to meet the country’s demand. This plant can use both
Branched Alkyl Benzene (BAB) and Linear Alkyl Benzene (LAB) to produce
Sulfonic acid.
The installed capacity of detergent of Unilever Pakistan Ltd is 9,000 MTPY.
Their actual production is around 12,000 MTPY. The production of detergents in
the form of powder, bar and liquid as reported by 66 units is given in table
below.
Production of Detergents
(M. Ton)
Year Detergents
1997-98 42,172
1998-99 43,361
1999-00 52,642
2000-01 63,970
2001-02 77,359
2002-03* 50,000
*July-Dec. Source: Federal Bureau of Statistics Source: Manufacturers
Cosmetics
Cosmetics sector covers tooth paste, shampoo, shaving cream, face
cream, face powder and other face lifting beauty applications.
The raw materials used are Talc, Calcium stearate, Kaolin, Zinc stearate,
Magnesium Oxide/carbonate/stearate, Zinc Oxide, Sodium Laurl Sulphate,
Beewax, Glyceryl monostearate, Methyl P-hydroxy Benzoate, Petroleum Jelly,
Butyl and P-Hydroxy Benzoate, Stearic acid, Sodium Carboxy Methyl, essential
oils and sorbitol.
Unilever Pakistan, Colgate-Palmolive, Kohinoor Soap & Detergents and
Wazir Ali Industries are major players in this sector. Small cosmetic
manufacturing units are located in Mingora, Swat.
The yearly production of cosmetics reported by 76 units is given below:
Production of Cosmetics
(000
Containers)
Year Cosmetics
1997-98 172,275
1998-99 206,592
1999-00 283,490
2000-01 384,699
2001-02 363,311
Source: Federal Bureau of Statistics
Future Prospects
o Fatty acid and Glycerene are two basic oleo-chemicals with huge industrial
potential for local use and export. These can be manufactured by setting
up fat splitting units. The fat splitting unit can further produce semi-
finished soaps as raw material for supply to the numerous small soap
factories in the country for further processing into ready to use soaps. The
value addition for fat splitting unit can be as high as 40-50%.
o The detergent industry has a lot of potential to grow. Sulfonated
vegetable or petroleum materials are required by this industry as such the
setting up of a few sulfonation factories is required.
Pakistan Soap Manufacturers Association
148, Sunny Plaza, Hasrat Mohani Road,
Karachi
Tel: 92- 21- 2634648
Fax: 92- 21- 2634648 / 2563828
Tariff Structure
Present tariff structure of Soaps, Detergents and Cosmetics is given in the
table below:
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
SOAP (Toilet & Laundry) Raw Materials
1 1502.0000 Tallow 10
2 1511.9010 Palm Stearine (subsitute of Tallow) Rs.9,500/MT
Customs Duty 15% if imported by Oleo-chemical industry vide SRO 58(1)/2002
3 1513.1100 Crude Coconut Oil Rs.9,500/MT
4 1513.2100 Crude Palm Kernel Oil Rs.9,500/MT
5 1513.2900 RBD Palm Kernel Oil Rs.10,800/MT
6 3823.1910 Palm Fatty Acid (Distillate) 20
7 3823.1920 Palm Acid Oil 20
8 3823.1990 Palm Kernel Fatty Distillate 25
Auxiliary Raw Materials (Soap)
9 1505.1090 Other (Lanolin) 20
10 1516.2000 Vegetable fats & oil (Almond Oil) Rs 10,200/MT
11 1521.9010 Bee Wax 20
12 2707.6000 Cresylic Acid 20
13 2815.1100 Caustic Soda (Solid) 25
14 2909.5000 Other (Irgason DP300) 10
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
15 2915.2990 Other Potassium acetate 10
16 2918.1100 Sodium Lactate 5 17 2918.1400 Citric Acid 10
18 2918.2900 Other Salicylic acid and its salts 10
19 3204.1900 Pigment & Dye Colors 20
10% Customs Duty for manufacture of Printing Ink vide SRO.358 (1)/2002.
20 3204.2000 Fluorescent Brightening Agent 20
21 3302.9000 Mixture of Odoriferous Substances (Perfumes) 20
10% Customs Duty for soap industry vide SRO.358 (1)/2002.
22 3402.1200 Surface Active Agents (Bulk) 20 23 3802.9000 Activated Bleaching Earth 25 24 3807.0000 Wood Tar Oils (Oil of Cade) 25
25 3912.3900 Other Carboxy-Methyl cellulose 10
Finished 26 3401.1100 Toilet Soap 25
27 3401.1900 Laundry Soap 25
DETERGENTS Basic raw materials
1 3817.0000 Mixed Alkyl Benzene (MAB) 10 Auxiliary Raw Materials
2 2507.0000 Kaolin 10 3 2833.1100 Di Sodium Sulfate 20 4 2835.3100 Sodium Triphosphate 10 5 2836.2000 Soda Ash 20
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
6 2836.5000 Calcium Carbonate (Plain) 10
7 3204.1900 Pigment & Dye Colors 20
10% Customs Duty for manufacture of Printing Ink vide SRO. 358(1)/2002.
8 3204.2000 Fluorescent Brightening Agent 20
9 3302.9000 Mixture of Odoriferous Substances 20
10% Customs Duty for soap industry vide SRO.358 (1)/2002.
10 3402.1300 Non lonic Surface active agents 20
11 3404.2000 Polyethylene Glycol Wax 10 12 3507.9000 Enzymes 10
13 3809.9100 Products of a kind used in Textile or like industries. 20
14 3912.3100 Carboxy methyl cellulose 20
Intermediate 15 3402.1110 Sulphonic Acid (Soft) 10 16 3402.1190 Sulphonic acid (Hard) 25
Finished 17 3402.9000 Detergent (Powder, liquid) 20
SHAMPOO
Basic raw materials 1 1302.3200 Conditioning Ingredient 25
2 3204.9000 Other synthetic coloring matter (Dye) 20
3 3302.9000 Mixture of odoriferous substances 20
10% Customs Duty for soap industry vide SRO.358 (1)/2002.
4 3402.1910 Other Surface Active Agents (CAPB) 10
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
5 3402.1190 Anionic surfactant in less than 10kg packing 25
5% or 10% Customs Duty on active ingredients of pesticides vide SRO.358 (1)/2002.
6 3504.0000 Protein 10
7 3824.9091 Other prepared binders (scale corrosion inhibitor) MDI
5
8 3824.9099 Other prepared binders (scale corrosion inhibitor) 25
9 3906.9090 Other (Acrylic Polymer in primary form) 20
10 3906.9090 Styrene/Acrylic Co -Polymer Emulsion (Styrene) 20
Finished Products 11 3305.1000 Shampoo 25
TOOTHPASTE
Basic raw materials 1 3301.1900 Flavor (essential oils in bulk) 20
2 3302.9000 Flavor (Mixture of odoriferous substances) 20
10% on Mixture of odoriferous substances vide SRO 358(1)/2002.
3 3402.1990 Other anionic Surface active agents 20
5% or 10% Customs Duty on active ingredients of pesticides vide SRO.358 (1)/2002.
4 3404.2000 Polyethylene Glycol Wax 10 5 3824.6000 Sorbitol Syrup 25 6 3912.3100 Corboxy-Methyl Cellulose 20
Finished Products
7 3306.9000 Toothpaste (Tube/Sachet) 25
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
SKIN CREAM
Basic raw materials
1 2710.1995 Liquid Paraffin 25
2 2914.5000 Ketone-Phenols & Ketone with other Oxygen function 10
3 2918.9000 Other (Carboxylic acid with aldehyde or Ketone function)
10
4 2936.2900 Niacinamide 10
5 3206.1900 Other Titanium di-oxide 20
6 3302.9000 Mixture of odoriferous substances 20
Customs Duty 10% for manufacture of toilet soap vide SRO.358 (1)/2002
7 3823.1100 Stearic Acid 25
8 3910.0000 Silicone 10
Finished Products
9 3304.9910 Skin Cream (Packed) 25
PAPER & PAPER BOARD
Production Capacity
There are around 100 units for the manufacturing of paper & paper
board while 12 more are under construction. Total installed capacity of existing
units is 560,600 MTPY with an investment of Rs 27.6 billion. The technology
used in Pakistan is low to medium with low efficiency. Approximately 70% of the
mills are located in Punjab, 20% in Sindh and 10% in NWFP.
Installed capacities and physical production of various type of Paper &
Paper products of 26 units registered with Pakistan Pulp, Paper & Board
Association are given in table below:
(M. Tons)
Paper Production
1997-98 1998-99 1999-00 2000-01
2001-02 2002-03*
Writing/Printing Paper
83,428 81,801 90,725 101,565 113,321 53,775
Wrapping/Packing paper
24,008 18,020 20,696 4,612 9,323 18,779
Duplex Paper Board 74,917 90,496 107,831 149,105 147,425 105,096
Chip / Other Board 41,400 24,656 26,363 33,476 35,978 @11,899
Fluting paper 23,160 35,200 53,788 39,702 30,714
Other types of Paper 8,071 8,279 6,544 8,733 8,966
**40,165
Actual production 254,984 258,452 305,947 337,193 345,727 229,714
Installed Capacity 324,100 331,000 341,000 393,500 393,500 393,500
Capacity Utilization % 79 78 90 86 88 117
@Estimated *July-Dec. Source: Federal Bureau of Statistics **Includes White Duplex Board, Chip Board, flutting paper & other types of paper.
Raw Materials & Process
The main raw materials used in Pakistan are wheat straw, bagasse, kahi
grass, rice straw and wood pulp. The mechanical process is not suitable for these
raw materials as it produces powder on grinding which reduces strength of the
product. The chemical processes are considered practical for pulping of such
short fibers. To manufacture paper, different types of pulps are blended in
desired proportions in a stock-blending chest where imported long fiber wood
pulp is also mixed.
Sulphite Process dominates the local manufacturing process. Sodium
Sulphite used for this process is produced locally. It is manufactured by reacting
Sulphur dioxide gas with Soda Ash (Sodium Carbonate) solution. Sulphite Process
is suitable for cooking wheat straw as it gives high yield up to 50% but it is not
suitable for rice straw because of high silica content. Sodium Sulphite used in the
process of pulping can be recovered at high cost which is economical for pulp
with capacity of 100 M.T./day or above. The process water can also create
pollution problems.
The principal raw materials for manufacturing of Paper & Paper Board are
pulps from wood, wastepaper and agricultural crop wastes. The agricultural
wastes like bagasse, rice and wheat straws, cotton linters and cotton wastes are
locally available. The chemicals used in various processes of pulping include
calcium carbonate, soda ash, caustic soda, sulphur and chlorine, lime, sodium
chlorate and sodium peroxide. Alum, starch, rosin, clay and other chemicals are
also used at paper making stage, most of these are available locally.
To produce paper and paperboard products about 15,000 – 17,000 MTPY
of imported chemicals were used during the years 2000-01 and 2001-02. The
percentage recovery of short fiber from various raw inputs is Bagasse 28 - 31%,
Wheat straw 33%, River grass 26%, Wood 40%, Cotton linter 85%, Waste Paper
75 - 80%. Wood pulp is imported while waste paper is available locally as well as
imported.
Supply & Demand
During 2001-02, the sector produced Paper & Paper Board worth Rs 15
billion, contributing 2.37% to the total manufacturing sector value. Demand for
Paper and Paperboard has shown a growth rate of 9% during the last 4 years.
Data on aggregate demand, production and imports for the last five years is
given in table below:
Production, Imports and Demand of Paper & Paper Board Year
ProductionM. Tons
ImportsM. Tons
Demand M. Tons
ConsumptionKg/capita
1997-98 254,984 122,011 376,995 2.871998-99 258,452 145,770 404,222 3.011999-00 305,947 160,370 466,317 3.392000-01 337,193 144,003 481,196 3.452001-02 345,727 178,301 524,028 3.692002-03* 189,559 127,076 316,635 2.60*July-December Source: Pakistan Pulp Papers & Board Mills Association
Paper and paperboard products are imported from Finland, Canada, USA
and China. Few companies have set up plants for manufacture of Medium
Density Fiber (MDF) boards from bagasse but it can also be used to set up plants
for writing paper and newsprints. List of manufacturers of Medium Density Fiber
Board and their capacities are given below:
(Cubic Meter)
Name of Manufacturer Capacity
Al-Noor MDF Board Industries Moro, Sindh 32,000
Chanab Particle Board Alipur Chatta, Punjab 12,000
Sethi Board, G.T. Road, Lahore, Punjab 22,000
Usman Punawala (Under Erection) Karachi, Sindh 25,000
Newsprint is the major imported finished product followed by white
duplex/coated board. Break-up of various types of paper & paperboard imported
during the last five years is shown in table below:
Import of Paper & Paper Board
(M. Ton)
*July-December Source: Pakistan Pulp Paper & Board Mills Association ** Pulp, Recover waste Paper/Board
Production cost comprises of 58% for raw materials, 10% labor, 12% fuel
& energy and 20% overheads.
Future Prospects
Baggasse is the residual by product of sugar industry. Traditionally it has
been used in boilers as fuel by the sugar mills as no alternate source of fuel like
gas or coal was available. The availability of cheap coal for power generation has
motivated sugar mills to convert their power generation facilities to coal fired
boilers. Only minor modifications in the boilers are required.
Pakistan imports large quantities of newsprint paper. Their imports during
last 3 years were 207,644 M. Tons. The Baggasse can be converted to newsprint
paper. The technology is proven. A project was already planned but not
Year
Newsprint
Other Paper & Paper board
Total Paper & Paper
board
Pulp & Waste paper
1997-98 54,865 67,146 122,011 50,7981998-99 63,134 82,636 145,770 39,9551999-00 77,167 83,203 160,370 33,8632000-01 59,684 84,319 144,003 35,5192001-02 70,793 107,508 178,301 54,9222002-03* 37,592 89,484 127,076 **58,481
implemented, as alternate fuel for sugar mills was not available. Coal may be
used as fuel for boilers and spared baggasse for value added newsprint paper.
Tariff Structure
The present tariff structure of Paper & Paper Board is given in the table below.
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
Raw Materials 1 2507.0000 Kaolin Clay 10
2 2509.0000 Cal. Carbonate 10 3 2818.2000 Aluminum Oxide 10 4 2818.3000 Alumina 10 5 2836.2000 Soda Ash 20
6 3806.1000 Gum Rosin 20
Duty at 10 & 15% if imported by resin and process industry vide SRO 358(1)/2002
7 3906.9090 Other (Acrylic Polymers in Primary Forms (Acusol) 20
Intermediate Products 8 5911.3100 Felts/Forming Fabrics<650 gsm 5 9 5911.3200 Felts/Forming Fabrics=>650 gsm 10
10 5911.9000 Other textile products and articles 20
Finished Products
11 4901.9100 Prescribed Text Books 5
Customs Duty at 0% on books, magazines, journals and newspapers vide SRO 358(1)/2002
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
12 4901.9900 Other printed books 5
Customs Duty at 0% on books, magazines, journals and newspapers vide SRO 358(1)/2002
Raw Materials: Wood & Pulp
1 4701.0000 Mechanical wood pulp. 5
2 4702.0000 Chemical wood pulp, dissolving grades. 5
3 4703.1100 Coniferous (unbleached) 5 4 4703.1900 Non-coniferous (unbleached) 5
5 4703.2100 Coniferous (semi-bleached or bleached) 5
6 4703.2900 Non-coniferous (semi-bleached or bleached) 5
7 4704.1100 Coniferous (unbleached) 5 8 4704.1900 Non-coniferous (unbleached) 5
9 4704.2100 Coniferous (semi-bleached or bleached) 5
10 4704.2900 Non-coniferous 5 11 4705.0000 Semi-chemical wood pulp. 5 12 4706.1000 Cotton linters pulp 5
13 4706.2000 Pulps of fibers derived from recovered (waste and scrap) paper or paperboard.
5
14 4706.9100 Mechanical pulp 5 15 4706.9200 Chemical pulp 5 16 4706.9300 Semi-chemical pulp 5
17 4707.1000 Unbleached Kraft paper or paperboard or corrugated paper or paperboard
10
18 4707.2000 Other paper or paperboard made mainly of bleached chemical pulp, not colored in the mass
10
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
19 4707.3000 Paper or paperboard made mainly of mechanical pulp (e.g. newspapers, journals)
5 -10
20 4707.9000 Other, including unsorted waste and scrap 5 -10
21 4801.0000 Newsprint, in rolls or sheets 5
22 4802.1000 Hand-made paper and paper board 20
23 4802.2000
Paper and paperboard of a kind used as a base for photo-sensitive, heat-sensitive or electro-sensitive paper or paperboard
10
24 4802.3000 Carbonizing base paper 10
25 4802.4000
Wallpaper base other paper and paperboard, not containing fibers obtained by a mechanical process or of which not more than 10% by weight of the total fiber content consists of such fibers.
10
26 4802.5400 Paper and paper boards Weighing less than 40 g/m2 20
27 4802.5500 Paper and paper boards Weighing 40 g/m2 or more but not more than 150 g/m2
20
28 4802.5800 Paper and paper boards Weighing more than 150 g/m2 20
29 4802.6000
Other paper and paperboard, of which more than 10% by weight of the total fiber content consists of fibres obtained by a mechanical process.
20
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
30 4803.0000
Toilet or facial tissue stock, towel or napkin stock and similar paper of a kind used for household or sanitary purposes, cellulose wadding and webs of cellulose fibres, whether or not creped, crinkled, embossed, perforated, surface-decorated or printed, in rolls or sheets.
20
31 4804.1100 Kraft liner (Unbleached) 20
32 4804.1900 Other sack Kraft paper 20
33 4804.2100 Sack Kraft paper (Unbleached) 20
34 4804.2900 Other kraft paper 20 35 4804.3100 Unbleached kraft paper 20
36 4804.3900 Other kraft paper and paperboard weighing more than 150 g/m2 but less than 225 g/m2
20
37 4804.4100 Unbleached 20
38 4804.4200
Bleached uniformly throughout the mass and of which more than 95% by weight of the total fibre content consists of wood fibres obtained by a chemical process
20
39 4804.4900 Other kraft paper and paperboard weighing 225 g/m2 or more
20
40 4804.5100 Unbleached 20
41 4804.5200
Bleached uniformly throughout the mass and of which more than 95% by weight of the total fibre content consists of wood fibres obtained by a chemical process
20
42 4804.5900 Other kraft paper 20
43 4805.1100 Semi-chemical fluting paper (corrugating medium) Multi-ply paper and paperboard.
20
44 4805.2100 Each layer bleached 0
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
45 4805.2200 With only one outer layer bleached 0
46 4805.2300 Having three or more layers, of which only the two outer layers are bleached.
0
47 4805.2900 Other 0 48 4805.3000 Sulphite wrapping paper 20 49 4805.4000 Filter paper and paperboard 10 50 4805.5000 Felt paper and paperboard 20
51 4805.9100 Other paper and paperboard, weighing 150 g/m2 or less 20
52 4805.9200 Other paper and paperboard weighing more than 150 g/m2 but less than 225 g/m2.
20
53 4805.9300 Other paper and paperboard, weighing 225 g/m2 or more. 20
54 4806.1000 Vegetable parchment 20 55 4806.2000 Greaseproof papers 25 56 4806.3000 Tracing papers 25
57 4806.4000 Glassine and other glazed transparent or transparent papers
25
58 4807.0000 Paper and paperboard, laminated internally with bitumen, tar or asphalt.
20
59 4808.1000 Corrugated paper and paper board, whether or not perforated 25
60 4808.2000 Sack kraft paper, creped or crinkled, whether or not embossed or perforated.
25
61 4808.3000 Other kraft paper, creped or crinkled, whether or not embossed or perforated.
25
62 4808.9000 Other paper and paper board 25 63 4809.1000 Carbon or similar copying papers 25 64 4809.2000 Self-copy paper 25 65 4809.9000 Other, carbon paper 25
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
66 4810.1100
Paper and paperboard of a kind used for writing, printing or other graphic purposes not containing fibres obtained by a mechanical process or of which not more than 10%by weight of the total fibre content consists of such fibres weighing not more than 150 g/m2
0
67 4810.1200 Weighing more than 150 g/m2 Paper and paper board 0
68 4810.2200 Light-weight coated paper 25
C. Duty at 20% on cost coated paper vide SRO 358(1)/2002
69 4810.2900 Other 25
70 4810.3100
Bleached uniformly throughout the mass and of which more than 95% by weight of the total fibres content consists of wood fibres obtained by a chemical process, and weighing 150 g/m2 or less
20
71 4810.3200
Bleached uniformly throughout the mass and of which more than 95% by weight of the total fibres content consists of wood fibres obtained by a chemical process, and weighing 150 g/m2
20
72 4810.3900 Other 20 73 4810.9200 Multi-ply paper and paperboard 25 74 4810.9900 Other 25
4811.1000 Tarred, bituminous or asphalted, gummed or adhesive paper and paperboard
25
76 4811.4100 Self-adhesive 20
77 4811.4900 Other 25
78 4811.5910 Thermal fax paper 25
C. duty at 10% on insole board vide SRO 358(1)/2002
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
79 4811.5990 Other 25
C. duty at 10% on insole board & 20% on release base paper and silicon paper vide SRO 358(1)/2002
80 4811.6000
Paper and paperboard, coated, impregnated or covered with wax, paraffin wax, stearin, oil or glycerol
25
81 4811.9000 Other paper, paperboard, cellulose wedding and webs of cellulose fibres
25
C. duty at 5% on electrolytic paper vide SRO 358(1)/2002
82 4812.0000 Filter blocks, slabs and plates, of paper pulp. 20
83 4813.1000 Cigarette paper In the form of booklets or tubes 25
84 4813.2000 Cigarette paper in rolls of a width not exceeding 5cm 25
85 4813.9000 Other 25 86 4814.1000 Ingrain paper 25
87 4814.2000
Wallpaper and similar wall coverings, consisting of paper coated or covered, on the face side with a grained, embossed, colored, design printed or otherwise decorated layer of plastics
25
88 4814.3000
Wallpaper and similar wall coverings, consisting of paper covered, on the faced side, with plaiting material, whether or not bound together in parallel strands or woven
25
89 4814.9000 Other 25
90 4815.0000 Floor coverings on a base of paper or of paperboard, whether or not cut to size.
25
91 4816.1000 Carbon or similar copying papers 25 92 4816.2000 Self-copy paper 25
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
93 4816.3000 Duplicator stencils 25 94 4816.9000 Other 25 95 4817.1000 Envelopes 25
96 4817.2000 Letter cards, plain post cards and correspondence cards 25
97 4817.3000
Boxes, pouches, wallets and writing compendiums, of paper or paperboard, containing an assortment of paper stationery
25
98 4818.1000 Toilet paper 25
99 4818.2000 Handkerchiefs, cleansing or facial tissues and towels 25
100 4818.3000
Tablecloths and serviettes sanitary towels and tampons, napkins for babies and similar sanitary articles.
25
101 4818.4010 Baby diapers in retail packing not exceeding 75 pieces 25
102 4818.4090 Other 20
103 4818.5000 Articles of apparel and clothing accessories 25
104 4818.9000 Other 25
105 4819.1000 Cartons, boxes and cases, of corrugated paper or paperboard 25
106 4819.2000 Folding cartons, boxes and cases, of non corrugated paper or paperboard
25
107 4819.3000 Sacks and bags, having a base of a width of 40 cm or more 25
108 4819.4000 Other sacks and bags, including cones 25
109 4819.5000 Other packing containers, including record sleeves 25
110 4819.6000
Box files, letter trays, storage boxes and similar articles, of a kind used in offices, shops or the like
25
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
111 4820.1000
Registers, accounts books, note books, order books, receipt books, letter pads, memorandum pads, diaries and similar articles
25
112 4820.2000 Exercise books 25
113 4820.3000 Binders (other than book covers), folders and file covers 25
114 4820.4000 Manifold business forms and interleaved carbon sets 25
115 4820.5000 Albums for samples or for collections 25
116 4820.9000 Other 25
117 4821.1000 Paper or paperboard labels of all kinds (printed). 25
Customs duty at 10% on medical grade paper vide SRO 358(1)/2002
118 4821.9000 Other 25
119 4822.1000 Bobbins, spools, cops and similar supports of paper pulp, of a kind used for winding textile yarn
25
120 4822.9000 Other 25
121 4823.1200 Gummed or adhesive paper, in strips or rolls (self-adhesives) 25
122 4823.1900 Other 25 123 4823.2000 Filter paper and paperboard 25
124 4823.4000
Rolls, sheets and dials, printed for self-recording apparatus, other paper and paperboard, of a kind used for writing, printing or other graphic purposes.
25
125 4823.6000 Trays, dishes, plates, cups and the like, of paper or paperboard 25
126 4823.7000 Moulded or pressed articles of paper pulp 25
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
127 4823.9010 Cards for jacquard machines 5
128 4823.9020 Patterns, design cards for textile and leather garments 5
129 4823.9090 Other 25
Pakistan Pulp Paper & Board Mills Association 402, Burhani Chamber, Abdullah Haroon Road, Karachi-74400 Phone: 92-21-7726150
GLASS
Production Capacity
Pakistani glass industry comprises of 37 units in organized sector. Around
12 major glass manufacturers are involved in producing sheet glass, containers
and tubing. The production capacity of units range between 10 MTPD to 200
MTPD, 51% of these units are located in Punjab, 26% in Sindh, 20% in NWFP
and 3% in Baluchistan. In addition to these, there are 25 units manufacturing
pharmaceutical ampules and vials from neutral glass tubing. Eight units are
producing auto glass products, art glass products, furniture etc. through
enhanced processing of local and imported glass.
More than 100 units are operating in the unorganized sector producing
various glass products. These units are located in Karachi, Hyderabad, Multan
and Lahore. 60% of these units produce small glass containers and tableware
and the remaining units are involved in the production of bangles, beads, tiny
glasses for dresses, furniture, crystal glass products, etc.
Total investment in this sector is approximately Rs 10.5 billion. The sector
produced glass products worth Rs 5.38 billion and contributed 1.20% to the total
manufacturing sector value in year 2001-02.
Raw Materials & Process
Raw materials used in sheet glass manufacturing are same irrespective of
types of processes and technology. Almost all raw materials are indigenous and
abundantly available in the country. Raw materials used in glass manufacturing
are silica sand, soda ash, dolomite, feldspar, salt cake, limestone and cullet.
Silica sand and soda ash are the main raw materials while remaining are used in
smaller quantities. Soda ash constitutes 85% of the raw material.
Supply & Demand
The glass products have been grouped into four main categories. These
are sheet glass, glass containers, electric bulbs and tubes and tableware. Actual
production of various glass products during the last three years is as below:
Production of various Glass products
Year Sheet Glass
Tons
Containers
Tons
Table wares
Tons
Bulbs & Tubes
Nos. in million 1997-98 75,742 105,021 14,710 1001998-99 78,085 117,936 18,464 1101999-00 80,500 114,805 23,632 1202000-01 63,264 90,326 19,634 1042001-02 64,045 90,464 21,341 1602002-03* 45,493 38,093 ** 5,132 79*July-December **From Tariq & Umer Glass Source: Manufacturers
The average capacity utilization of the sector during last three years
ranged between 57% to 64%.
Demand/Supply Gap for Float and Sheet Glass
Data on country’s demand, local supply and import during the last five
years is tabulated below:
(M. Ton)
Years 1997-98 1998-
99
1999-
00
2000-
01
20001-02
Total Demand 101,992 107,851 118,246 97,520 108,807
Local Supply 75,709 77,185 79,553 63,264 64,045
Demand/Supply
Gap
26,283 30,666 38,693 34,256 44,762
Imports
- Float Glass 20,395 21,441 28,732 26,763 34,097
- Other Sheet 5,888 9,225 9,961 7,493 10,665
Total Import 26,283 30,666 38,693 34,256 44,762
Source: All Pakistan Glass Manufacturers Association
The increase in demand/supply gap during last three years was largely on
account of non-existence of any facility for the production of float glass.
However, it is expected that after coming into operation of one float glass unit,
this gap will be significantly reduced.
Import & Export
The country imports float and other sheet glass i.e. wired / non-wired
sheet glass, toughened safety glass and laminated glass, etc. to meet the
domestic demand. Float glass non-wired is the major imported item ranging 60%
to 70%, of total import of float and sheet glass.
Other imported sheet glass includes toughened glass, laminated glass and
mirror glass. Pakistan Safety Glass Limited, which came into operation in 1973
has facilities and technical know-how to further process locally produced sheet
glass and imported float glass.
Import and export data for last five years is tabulated in table below:
(Million Rs)
Year Imports Exports
1997-98 1,039 75 1998-99 1,320 93 1999-00 1,578 99 2000-01 1,394 75 2001-02 1,935 202 2002-03* 708 117
*July-December Source: Federal Bureau of Statistics
Major exports of glass products were mainly to Afghanistan, Kuwait,
Vietnam, Saudi Arabia, Dubai and China. During 2002, total glass export
constituted of containers 46% followed by Glass Sheet (36%).
Future Prospects
The increase in supply demand gap during the last five years was largely
on account of non-existence of facility for production of float glass. It is expected
that one float glass unit of around 50,000 MTPY shall fulfill this gap.
Tariff Structure
The present tariff structure of Glass is given in the table below.
S.No. HS Code Commodity Description C. Duty 2002-03 Comments
Raw materials 1 2710.9900 Lubricating Oils, Others 25 2 2836.2000 Soda Ash 20 3 3207.2000 Prepared Pigments 20
Others
4 2605.0000 Cobalt Oxide (Cobalt ores and concentrates.) 5
5 2710.1949 Lubricating Oils, Others 25 6 2804.9000 Selenium 5 7 2833.1100 DI Sodium Sulphate 20
8 3102.5000 Sodium Nitrate (Other Organic compounds) 5
9 6902.1090 Refractories & Refractory Mortar 10 10 7003.2000 Wired sheets 25
Finished Products
11 7002.3100 Glass tubes of quartz or other fused silica 20
12 7005.2100 Float Glass 25 13 7005.2900 Other float glass 25 14 7009.1000 Glass Mirror 25 15 7010.0000 Glass Bottles 25 16 7013.0000 Glass Table Ware 25 17 7010.0000 Glass Bottles 25
Pakistan Glass Manufactuers Associaton 33-A, Street No. 13, Sector F-7/2, Islamabad Phone: 92-51-2825045/2825090 Fax:92-51-2825106
SODA ASH & SODIUM BICARBONATE
Soda Ash is chemically Sodium carbonate and it is commonly known as
dhobi soda or washing soda. Soda Ash is used in the manufacture of glass,
soaps, detergents, sodium silicate, paper, caustic soda, paint, petroleum refining,
inorganic chemicals.
High density soda ash contains 99% sodium carbonate and low density
soda ash contains 98% sodium carbonate. Only high density soda ash is used in
the manufacturing of glass. Total investment in this sector is about Rs 6 billion.
ICI Pakistan produces low as well as high density soda ash while Olympia
Chemicals produces only low density soda ash.
Raw Materials & Process Soda Ash is manufactured by Ammonia Solvey process forming sodium
bicarbonate, which is calcined to sodium carbonate. Common Salt (sodium
chloride) and limestone (calcium carbonate) are the basic raw materials.
Production Capacity Total Soda ash production capacity is 265,000 tons per year. Both the
plants producing soda ash are located in the Salt Range area.
(MTPY)
o ICI Pakistan, Khewra 225,000
o Olympia Chemicals, Khushab 40,000
Total Soda Ash capacity 265,000
Source: Manufacturers Year: 2002
The ICI plant is the oldest and largest operating plant in Pakistan. It was
established in 1944 with a capacity of 18,000 MTPY. The capacity has been
progressively increased to 225,000 MTPY in 2001 and it caters for nearly 80% of
the local demand. ICI is planning an expansion of additional 100,000 MTPY by
the year 2004-06.
The Olympia Chemicals is a new plant with a capacity of 40,000 MTPY but
likely to be doubled by 2003. The plant is based on Chinese technology with
power generation from the locally available coal. The Solvay Process is applied
for the production of soda ash. The plant started production in May 2000 with a
capital cost of Rs 600 million.
Sindh Alkalis Ltd with a capacity of 40,000 MTPY was established in 1966
in the public sector which is closed at present.
Production in the country is given in the table below. The production
figure for 2001-02 represents about 90% capacity utilization. The local capacity
is meeting most of the local demand and imports are at minimum level.
Soda Ash Production
(M. Ton)
Year
Soda Ash Production
1997-98 240,300
1998-99 239,400
1999-00 245,700
2000-01 252,000
2001-02 240,000
2002-03* 118,836
*July-December Source: Federal Bureau of
Statistics
Future Prospects
The projected demand is likely to grow by 3% in the next ten years. The
additional demand is likely to be met through BMR of the existing plants.
Sodium Bicarbonate
At Present, only ICI Pakistan, Khewra has the capacity to produce 14,000
MTPY of Sodium Bicarbonate from the unit established in 1995. Sindh Alkalis
Karachi had a capacity of 10,000 MTPY but the plant is not operating since
2000.
Sodium Bicarbonate is used in drugs manufacturing, bakery & food
products and beverages. Besides local production of about 14,000 MTPY,
following imports were also made in the recent years:
(M. Tons) (Million Rs.)
Year Quantity Value
1997-98 2,429 22
1998-99 1,900 19
1999-00 10,123 86
2000-01 7,919 77
2001-02 12,037 121
2002-03* 6,098 56
*July-December Source: Federal Bureau of Statistics
Future Prospects
The imports can be substituted through revival of Sindh Alkalis Plant or
setting up of an additional plant of same capacity.
Tariff Structure
The present tariff structure for the Soda Ash is given in the table below.
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
Raw Materials 1 2501.0010 Salt -NaCl 25 2 2521.0000 Lime stone 20 3 2704.0010 Coke 5
Intermediate
4 2836.3000 Sodium Bicarbonate (Food grade) 20
5 2836.3000 Sodium Bicarbonate (Pharma grade) 20
Finished
6 2836.2000 Soda Ash (Sodium Carbonate) 20
7 2836.2000 Soda Ash (Dense) 20 End Use
8 2827.2000 Calcium Chloride 5 9 2830.1000 Sodium Sulfide 10 10 2833.2300 Sulfates based on Chromium 25 11 2833.1100 Di Sodium Sulphate 20 12 2836.6000 Barium Carbonate 10 13 2839.1910 Sodium Silicate 10 14 2841.3000 Sodium Dichromate 25
15 3202.9010 Tanning preparations based on Chromium Sulfate 25
16 3204.2000 Fluorescent Brightening Agent 20
17 3402.2000 Detergents (retail & bulk) 25 18 0048.0000 Paper 5-25 19 0070.0500 Glass 25
CAUSTIC SODA, CHLORINE AND RELATED PRODUCTS
Caustic Soda Caustic soda is chemically known as sodium hydroxide. It is generally
supplied to other industries in the form of 50% solution of sodium hydroxide or
solid flakes. Caustic soda is used in a number of industries like soaps,
detergents, textile, paper and paper board, oil refining, vegetable and ghee,
industrial water treatment and rubber reclaiming.
Raw Materials & Process Sodium Chloride (common salt) is the main raw material for
manufacturing caustic soda. The electrolysis of Sodium Chloride solution
produces caustic soda with the extensive use of electricity. Three types of cells
can be used for the electrolysis process. The membrane cells are the latest and
most efficient while diaphragm and mercury cells have become outdated.
The process also produces chlorine and hydrogen as by products. The
economics of this industry depends on the utilization of chlorine in manufacture
of products like PVC. The production cost of local caustic soda remains higher
than international market due to very low utilization of chlorine and charging all
costs on caustic soda products.
Production Capacity Presently, there are two major plants producing around 200,000 MTPY of
Caustic soda. New project at Sitara Chemicals has been commissioned in Oct
2002 while a new unit of 43,000 MTPY capacity at Ittehad Chemicals is expected
to be completed in the year 2003. The table below presents the capacity of
operating plants.
Capacity of Production Units
(MTPY)
Plants
Capacity
Ittehad Chemicals, Kala Shah Kaku 66,000
Sitara Chemicals, Faisalabad 132,000
TOTAL 198,000 Source: Manufacturers Year: 2002
Following three caustic soda plants were closed down since last many
years.
o Sind Alkalies, Karachi 3,500 MTPY
o Pakistan PVC, Karachi 7,000 MTPY
o Bela Chemicals, Hub 15,000 MTPY
Total: 25,500 MTPY
Supply and Demand Import of Caustic Soda was very high in eighties and nineties. A high duty
of Rs 7,200 per ton in 2000-01 and Rs 6,000 per ton in 2001-02 was imposed on
the import of liquid caustic to discourage the imports and to protect the local
caustic soda industry. Majority of caustic imports are in solid form as flakes.
Production and Import Data of Caustic Soda
(M. Tons)
Year Production Imports
1997-98 115,700 1,3001998-99 120,400 4,4001999-00 141,300 8,9002000-01 145,500 4,200
2001-02 151,100 28,7302002-03* 77,851 13,832
*July-December Source: Federal Bureau of Statistics 2001-02
Future Prospects Demand of Caustic Soda is expected to grow by 4%. The projected
demand in next 10 years (2011-12) is expected to be 225,000 MTPY. With the
commissioning of Sitara Chemicals (capacity of 66,000 MTPY) and expansion of
Ittehad Chemicals (capacity of 43,000 MTPY) the production capacity shall be
sufficient to meet the demand.
Chlorine
Chlorine is an essential and important by-product from the caustic soda
plants. Production figures for the five years are given in table below:
Production of Chlorine
(M. Tons)
Year Chlorine
1997-98 9,800
1998-99 11,300
1999-00 14,200
2000-01 14,500
2001-02 15,104
2002-03* 32,044 *July-Dec. Source: Federal Bureau of Statistics
2001-02
Approximately 89 tons of chlorine is produced with each 100 ton of caustic
soda. Chlorine is sold in cylinders for water treatment and some of it is converted
to downstream products like hydrochloric acid, bleaching powder, Fullers earth,
Sodium hypo-chlorite, Ammonium Chloride and Ferric Chloride.
The remaining large quantity of Chlorine finds no use and at present it is
being wasted by neutralization with lime. It is very important that available
chlorine be utilized in making PVC for improving the economics of caustic plants.
Alternately Hydrochloric acid (HCl) can be reacted with Phosphate rock for
production of Phosphoric acid Pilot plant experiments have been conducted
recently by Sitara Chemicals to produce Phosphatic fertilizers. If proved
commercially successful, all the excess chlorine can find use in this application.
This shall ultimately reduce cost of caustic soda.
Tariff Structure The present tariff structure for Caustic Soda is provided in the table below.
S.No. HS Code Commodity Description Custom Duty 2002-03 Comments
Raw Materials 1 2501.0010 Rock Salt (NaCl) 25
2 2807.0000 Sulphuric acid; Oleum. 10
3 2511.1000 Natural barium sulphate (Nitrites)
10
Finished 4 2815.1100 Caustic Soda (Solid) 25
5 2815.1200 Caustic Soda (liquid) Rs.7,000/MT
End Use
6 3401.1900 Others (Toilet & laundry
Soap) 25
7 3401.2000 Soap in other forms 25
8 0048.0000 Paper & Board 5 – 25
SULFURIC ACID, HYDROCHLORIC ACID & NITRIC
ACID Sulfuric Acid
Sulfuric acid is an important chemical. Its demand is taken as a barometer
of industry in any country. It is of great commercial importance for use in
manufacture of fertilizers, other acids, heavy chemicals, dyes and pigments,
lacquers, plastics, explosives, textile, paints, leather tanning, oil refining, water
treatment, treatment of cotton seeds and other chemicals. It is generally
marketed with 98% concentration.
Raw Materials & Process Sulfur is the basic raw material. Sulfuric acid is manufactured by burning sulfur to sulfur dioxide. It is then converted to sulfur trioxide by catalytic oxidation. The resulting sulfur trioxide is absorbed in water to form sulfuric acid. Production Capacity
(MTPY)
Plants CapacityLyallpur Chemicals & Fertilizers, Jaranawala* 33,000Hazara Phosphate Haripur* 36,300POF, Wah Cantt.* 3,300PAEC D. G. Khan* 8,250Rawal Chemicals Hattar 8,250Amber Chemicals Hattar 6,600Attock Chemicals Hattar 16,500Rawal Chemicals Sheikhupura 10,000Prime Chemicals Sheikhupura 10,000Ittehad Chemicals Lahore 3,300Karsaz Chemicals Lahore 3,300Riaz Aslam Chemicals Chunian 6,600Crescent Chemicals Sukkur 10,000Exide Pakistan limited Karachi 16,500Pak Chemicals Karachi 24,000Acid Ind. Pvt. Ltd. Karachi 26,400
TOTAL 222,300 *Mainly for captive use
First four listed plants are producing sulfuric acid for their captive use.
Only surplus production is sold in the market.
The reported production of sulfuric acid is listed below. The imports for
this item were 5.7 metric tons in 2001-02.
Production of Sulfuric Acid
(MTPY)
Year Sulfuric Acid
1997-98 28,100
1998-99 27,000
1999-00 57,700
2000-01 57,100
2001-02 59,200
2002-03* 16,776 *July-Dec. (Reported units) Source: Federal Bureau of Statistics
Future Prospects
Presently the installed capacity is in excess of local demand as such no
investment potential exists at the moment.
Hydrochloric Acid
Hydrochloric acid is produced on demand by Ittehad Chemicals and Sitara
Chemicals from the excess chlorine by-product available with them. The
production capacities of both plants are given below.
Production Capacity
(MTPD)
o Sitara Chemicals 800
o Ittehad Chemicals 500
TOTAL 1,300
Source: Manufacturers Year: 2002
In the year 2001-02, only 38 metric tons of Hydrochloric acid was
imported.
Nitric Acid
Nitric acid is produced by POF Wah and Pak Arab Fertilizers, Multan for
their captive use. Small local demand is met through their surplus production.
The latest production capacities of both plants are given below.
Production Capacity
(MTPY)
Pak Arab Fertilizers, Multan 455,600
POF, Wah Cantt. 10,000
TOTAL 465,000
Source: Manufacturers Year: 2002
ORGANIC CHEMICALS
Acetic Acid
Commercially, the acetic acid is usually produced by such chemical
processes as the oxidation of acetaldehyde in air with the presence of catalyst.
Acetaldehyde is itself formed from the oxidation of ethylene obtained from
petroleum.
One of the major uses of acetic acid is as an intermediate for making
other chemicals. It can also be converted to acetic anhydride and acetate esters.
Acetic anhydride is used to make acetate fibers and cellulose acetate, a plastic.
Ethyl acetate is an important ester used as a solvent for varnishes and in nail
polish remover. As a reagent, acetic acid is used to make synthetic, rubber,
aspirin and other pharmaceuticals. It is also widely used as an acid and solvent.
At present, there are three units in Pakistan.
i) Wah Nobel Acetates Ltd, (Wah) ii) Ravi Rayon (Pvt.) Ltd. (Lahore) iii) Midas Chemicals, (Raiwind Road, Lahore)
Wah Nobel: Wah Nobel was established with an investment of Rs 450
million including 140 million foreign exchange component, has a production
capacity of 7,000 MTPY of Acetic Acid. The entire production is for captive use.
Wah Nobel has production capacity of 6,000 MTPY of Ethyl and Butyl
Acetates. Actual production of Ethyl, Butyl Acetates is around 1,800 MTPY each,
due to lower demand in the country.
Ravi Rayon Ltd.: Ravi Rayon has a production capacity of 3,000 MTPY of
Acetic Acid. The plant was closed earlier and now is being revived.
Midas Chemicals: The plant is being established with a production
capacity of 5,000 MTPY in Lahore, using Alcohol as a feedstock and soon will be
in commercial production. The project is financed by Industrial Development
Bank of Pakistan (IDBP) and is based on German technology.
Production Capacity
(MTPY) S. No.
Name of Company Capacity
1. Wah Nobel Acetates Ltd. Wah 7,000
2. Ravi Rayon (Pvt.) Ltd. Lahore 3,000
3. Midas Chemicals, Raiwind Road Lahore 5,000
TOTAL 15,000
Source: Respective Manufacturers Import of Acetic Acid Acetic acid is also being imported. Import figures for the last five years
are given below:
(M.Tons)
(Million Rs.)
Year Quantity Value
1997-98 3,311 95
1998-99 15,759 353
1999-00 22,871 496
2000-01 21,903 648
2001-02 22,033 654
2002-03* 11,009 312
*July-December Source: Federal Bureau of
Statistics
Future Prospects Total installed capacity in the country as seen from the table above is
15,000 MTPY out of which 7,000 MTPY being produced by Wah Nobel is for their
captive use, the remaining 8,000 MTPY is available for local market.
Keeping in view the average import of last three years, i.e. 22,269 MTPY
and 8,000 MTPY production capacity available in the country. There is a room for
investment for the manufacture of 15,000 MTPY of Acetic Acid. Basic raw
material is Molasses, which is available in abundance. It must be utilized for
value addition. However, a feasibility study would be required for its viability in
view of the reduction in import duty on Acetic Acid from 65% to 25% since
1998.
Formic Acid
Formic acid is mainly used as a neutralizing agent in leather and textile
industry.
Production Capacity
Formic acid is being manufactured by Tufail Chemical Industries Ltd.
Lahore with a capacity of 5,000 MTPY. The raw material used by them is Sodium
Formate.
Imports
Imports of Formic acid are given in table below:
Imports of Formic Acid
(M. Tons)
(Million Rs.)
Year Quantity Value
1997-98 3,271 92
1998-99 2,453 70
1999-00 3,616 94
2000-01 4,610 121
2001-02 3,903 109
2003-03* 2,342 63
*July-December Source: Federal Bureau of
Statistics
Future Prospects In addition to the local manufacture of 4,000 – 5,000 MTPY (by Tufail
Chemical Industries Ltd.) an import of 3,500 – 4,500 MTPY is also being made
which indicates that there is room for more investment, however a detailed
techno-economic study is required.
Methanol
Methanol is a petrochemical product produced during natural gas
cracking. Last five years import data is given below:
Methanol Import
Year Quantity Litres (000)
Quantity M. Tons
Value (Million Rs.)
1997-98 24,012 19,210 238 1998-99 19,771 15,817 184 1999-00 27,196 21,757 233 2000-01 33,763 27,010 438 2001-02 34,069 27,255 376
2002-03* 20,877 16,702 268 *July-December Source: Federal Bureau of
Statistics
This is used as freezing point depressant and manufacture of
petrochemical products like Formaldehyde, Acetic acid, Methyl Tertiary Butyl
Ether (MTBE), etc. The demand justifies setting up of a small unit.
Rice & Rice Husk
Rice is an important staple food for Pakistanis and its production is above
4 million tons per year. Rice is being used to produce Glucose, Fructose and
Maltose. However, rice husk is normally used as fuel and it is not being utilized
for value addition. Rice husk can be used to manufacture furfural, which finds
use in various applications of synthetic rubber, resins, perfumery, dyes, plastics
and oil refineries, etc.
Formaldehyde 37%
Formaldehyde is a raw material for the manufacture of Urea formaldehyde
and Phenol formaldehyde. The raw material used for Formaldehyde is Methanol,
which is being imported at the moment.
Production Capacity
There are six companies engaged in the manufacture of Formaldehydes in
the country out of which three main players are Wah Nobel, Dynea Pakistan Ltd.
and Super Chemicals Pakistan Limited. Wah Nobel are planning 15,000 MTPY
increase in capacity by June 2004.
Production capacity
(MTPY) S. No. Company Capacity
1. Wah Nobel, Wah 15,0002. Dynea Pakistan Ltd. Karachi 39,0003. Super Chemicals Ltd. Karachi 30,0004. Pakistan Resins Ltd. Azad Kashmir 12,0005. Izhar Enterprises Ltd. Lahore 9,0006. HTG Petrochemicals Hub 6,000 TOTAL 111,000
Source: Manufacturers
Imports
There are no imports of Formaldehyde in the country.
Demand and Supply
Formaldehyde is mainly used for the manufacture of Glue for Chipboard,
Plywood, Formica industry and Granular urea. Phenol formaldehyde is used for
the manufacture of electrical and mechanical components.
The demand in the market fluctuates between 70,000 MTPY to 90,000
MTPY.
The available capacity is 111,000 MTPY, which will be increased to around
125,000 MTPY by Jan., 2004. This includes the recent expansion by M/s. Dyena
Pakistan from 19,500 MTPY to 39,000 MTPY and increase of 15,000 MTPY by
January 2004 of Wah Nobel. These expansions have been made in view of the
anticipated increase in the chipboard, plywood and formica industry.
Future Prospects
The existing capacity is already more than the current demand in the
sector, so this sector carries no investment potential at the present. Its raw
material is a petrochemical product, which may come from the proposed
petrochemical complex.
SPECIALTY CHEMICALS
Specialty Chemicals are those, which are developed and produced to fulfill
exact requirement of a customer (tailor made products). These are made
normally in batch process on a smaller scale and have high value addition. They
are more technology oriented rather than being capital intensive.
Specialty Chemicals cover a wide range of products. Their raw materials
and intermediates are derived from various organic and inorganic chemicals. The
raw materials such as Aniline, Phenol, O-Toluidine, Ethylene Oxide and Propylene
Oxide are not being manufactured in Pakistan, due to economy of scale and lack
of feed stocks.
Intermediates such as Naphtaline Pyridones, Pyrazolones, Naphthol AS, H.
Acids, O-Acid, K. Acid and ZR Acid, etc. are produced in medium to small
industries catering to specialty chemicals industrial segment.
These intermediates are not being manufactured in Pakistan because of
absence of feedstock e.g. Benzene is a feed stock for Aniline which is a raw
material for N-Methyl Aniline which in turn is an intermediate used for the
production of Dyes, Pigments, Chemicals and resins, etc.
A few intermediates are being manufactured in Pakistan such as Phathalic
Anhydride for DOP by Nimir Chemicals, Wah Noble producing Acetic Acid and
Acetic Acid Ester, PTA by ICI Pakistan for Polyester Fiber industry. Tufail
Chemicals are producing Formic Acid. These have been discussed in the
respective sectors.
Finished Products
These raw materials and intermediates are used to produce a number of
Specialty Chemicals in the following sectors:
o Dyes & Pigments
o Textile and Tannery Chemicals
o Water Treatment Chemicals
o Food Chemicals
o Essential Oils
Each of the above sectors has been discussed separately in the following
sections:
DYES & PIGMENTS
Dyes are intensely coloured substances used for the coloration of various
substrates including paper, leather, fur, hair, foods, drugs, cosmetics, waxes,
greases, petroleum products, plastics and textile materials. They are retained in
these items by physical adsorption, salt or metal complex formation, solutions
mechanical retentions or by the formation of covalent bonds.
Dyes are applied to textile fibers by two distinct processes, dyeing and
printing, of which dyeing is much more extensively used. Dyes are classified in
accordance with their chemical constitutions or their application to textile fibers
and for other coloring purposes.
Pigments are differentiated from the dyes, although they are for the same
purpose of imparting color to the article. Pigments are insoluble liquors to color
the surface of the material and imparting the opacity to it.
Classification of Dyes
Acid Dyes: Acid dyes are water soluble anionic dyes that are applied to
nitrogenous fibers, such as wool, silk, nylon and modified acrylic fibers from acid
or neutral baths. Acid dyes contain, as the active principle aromatic compounds
including in their chemical structure, a chromo phonic group and a water-soluble
group. The commercial dye appears in the form of the sodium salt normally
standardized, diluted with anhydrous sodium sulfate. Acid dyes are not
substantive to cellulosic fibers, chemically the acid dyes consist of Azo,
anthraquinone, triphenylmethane, Amine etc.
Basic Dyes: The appeal of the basic dyes lies in their brilliant shades,
some of them being fluorescent. Unfortunately their brilliance is not matched by
their fastness. Basic dyes are applied to wool and silk for brightness. Basic dyes
are water-soluble and dissociate into amines and colored actions.
Disperse Dyes: Disperse dyes are colored organic compounds, which
are only very slightly soluble in water and therefore, dying is carried out with
aqueous dispersion. It is the most successful type of dye for coloration of
cellulose acetate fibres and also used on polyamides, poly acrylonitriles,
polyesters and cellulose triacetate.
Reactive Dyes: The most recent technological contribution to textiles
has been the development of reactive dyes. Reactive dyes are unique as they
are the only class to dyes that actually form a chemical bond with textile fiber
and this bond gives them their excellent wash fastness properties. They are
highly soluble in water. The major substrate includes Cotton, Rayon, Wool, Silk
and Nylon.
Sulfur Dyes: These are amorphous, colloidal materials of high molecular
weight and are of variable composition. Sulfur dyes are insoluble substances,
which are brought into soluble form for dyeing by treatment with a hot solution
containing alkali and sodium sulfide. Sulfur dyes are particularly rich in blacks of
good value and shades.
Vat Dyes: Vat dyes are complex organic molecules that are insoluble in
water, but when their carboxyl groups are properly reduced in a solution of
caustic soda to leuco, they exhibit an affinity for cellulosic fiber. The shades are
of excellent wash fastness, chlorine fastness and light fastness.
Environment Aspects of Dyes
The environmental impact of textile production is considerable. Most
textiles are to be dyed and printed. More than 10,000 different dyes are
available for this process and much is known about the potential dangers. The
ETAD (Ecological and Toxicological Association of the Dyestuff manufacturing
Industry) tested more than 4,000 dyes for acute toxicity and found that
approximately 1 % of the dyes were toxic.
The dyes involve certain chemicals that are hazardous to the human skin.
Some Azo coloring agents have carcinogenic properties or may form amines
(breakdown products) which have carcinogenic and mutagenic properties.
Approximately 70% of all dyes used in the textile industry are Azo dyes. There
are about 2000 different Azo dyes of which approximately 200-300 may be
hazardous.
Dyes Stuff Business and Textile Industry
The Pakistan textile industry is traditionally based on the manufacture and
export of spinning yarn and threads. Today around two hundred large and
medium sized processing mills exist along with thousands of small dye houses. It
is estimated that this industry consumes over 22,000 tons of dyestuff and
pigments annually. The shares of different type of dyes consumed are given as
follows:
o Reactive dyes 34.27 % o Disperse dyes 15.00 %
o Acid dyes 09.00 % o Sulfur dyes 07.65 %
o Basic dyes 05.77 % o Direct dyes 03.07 %
o Vat dyes 02.24 % o Pigments 23.00 %
Pigments are opaque colored objects and they are ground to very fine size
for the manufacture of paints and printing ink. Pigments are always used with
some oil based solvent.
Production Capacity
Small quantities of Direct Dyes and Pigment Dyes are being manufactured
locally. The intermediates required for dyes are being imported especially from
China. There are 6 units in the organized sector and 7 in unorganized sector
involved in the production of dyestuff. M.B. Dyes, Gadoon are planning to
increase their capacity by three times, which will become 3,600 MTPY by end of
this year. The production capacity of the six main units is as given below:
(MTPY)
Company Capacity
BASF Karachi 25,000
Sandalbar Faisalabad 8,500
Clariant Karachi 5,500
M.B. Dyes Gadoon Amazai 3,600*
Chemi Dyestuff Industries Karachi 700
Gadoon Dyes Chemical Gadoon Amazai 600
TOTAL 43,900
*Current capacity is 1,200 MTPY. Source: Delta Industries (Pvt.)
Ltd.
Demand of Dyes & Pigments in Textile Industry
(M. Tons)
H. S. Code
Commodity
Import 2001-02
Production 2001-02
Consumption 2001-02
Import 2002-03*
Production 2002-03*
Consumption 2002-03*
3204.1100 Disperse Dyes 3,198 N.A. - 1,734 N.A. -
3204.1200 Acid Dyes 1,870 805 2,675 979 320 1,299
3204.1300 Basic Dyes 1,042 - 1,042 535 - 535
3204.1400 Direct Dyes 504 1,190 1,694 227 740 967
3204.1500 Vat Dyes 1,109 - 1,109 748 - 748
3204.1600 Reactive Dyes 4,692 2,500 7,192 3,195 975 4,170
3204.1905 Sulphur Dyes 1,745 - 1,745 1,261 - 1,261
3204.1700 Pigments & Prep. 2,823 2,450 5,273 1,650 1,350 3,000
TOTAL 16,983 **6,945 20,730 10,329 **3,385 11,978
* July-December Source: Sandal Dyestuff
Industries Ltd.
** Excluding Chemi Dyestuff & Clariant
The imports of all types of Dyes & Pigments are given below in the table:
Imports of Dyes & Pigments
(M. Tons)
(Million Rs.)
Dyes Pigments Year
Quantity Value Quantity Value
1997-98 12,323 2,636 12,570 1,549
1998-99 12,970 2,888 11,660 1,709
1999-00 15,034 2,808 13,104 1,898
2000-01 14,413 2,801 12,158 1,891
2001-02 14,672 3,168 12,758 1,978
2002-03* 8,923 1,791 8,186 1,139
*July-Dec. Source: Federal Bureau of Statistics & CBR
Future Prospects
There is local manufacturing of dyes and pigments but large quantities are
still being imported. Total import of this group stood at Rs 5.0 billion during
1999-2000. Additionally, about Rs 0.4 billion worth of printing ink and paints
were also imported. The raw materials for this category are petrochemicals. The
petrochemical complex proposed may provide necessary intermediates & raw
materials to this industry. There is a need to encourage and set up more dyes &
pigment manufacturing units.
Titanium Di-Oxide (TiO2) There are two industrial grades of titanium dioxide pigment 1) Rutile
grade used for manufacture of paints and plastics 2) Anatase grade used in
polyester fibre and paper industry. Rutile grade is normally manufactured via
chloride process from rutile ore and Anatase grade is manufactured via sulphate
process using ilmenite ore.
Rutile grade is capital and energy intensive project. This project is viable
only for large scale manufacturer. Moreover, neighbouring Saudi Arabia has this
facility which serves extensive market including Pakistan. Pakistan imports about
3,000 tonnes of TiO2 to manufacture paints and plastics.
Current requirement of anatase grade titanium dioxide is approximately
10,000 MTPY. Therefore, it may be practical to establish a 10,000 MTPY facility
to manufacture anatase grade to cater needs of polyester fibre industry of
Pakistan. Saudi Company the National Titanium Dioxide Company may be
approached to share the equity and facilitate the acquisition of technology.
Sulphuric acid one of the major raw materials is being manufactured in Pakistan
and other material ilmenite can be either imported or locally available ilemenite
can be upgraded. The capital cost is estimated to be around US$ 35 million.
Pakistan Chemical & Dyes Merchants Associations
Chemical Dye House, Rambhart Street, Jodia Bazar,
Karachi-74000
Phone: 92-21-2432752
Fax: 92-21-2430117
Tariff Structure
The present tariff structure for Dyes & Pigments is provided in the table
given below.
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
Raw Materials 1 2834.1000 Sodium Nitrite 10 2 2905.1600 2 Ethyl Hexanol 5 3 2907.1500 Napthols and their Salts 10 4 2907.2100 Resorcinol and its Salts 10
5 2921.1900 Others (Para Xylidine/Sulfamic Acid) 10
6 2921.2100 Ethylenediamine and its Salts 10
7 2921.2900 Others (Aceto Acetic Ortho Anisidine) 10
8 2921.4200 Aniline Derivative and its Salts 10
9 2921.4400 Diphenylamine and its derivatives; salts thereof. 10
10 2921.4500
1 - Naphthalene (Alpha-naphthalamine), 2- Naphthylamine (beta-naphthylamine) and their derivatives; salts thereof.
10
11 2921.4900 Others, Aromatic Polyamines and their derivatives; salts thereof.
10
12 2921.5900 Other (Sodium naphthionate) 10 13 2922.1900 Other (Morpholine) 10
14 2922.2100 Amino Hydroxynaphthalene - Sulphonic Acids and their Salts.
10
15 2922.2900 Other oxygen function amino compounds. 10
16 2922.4210 Mono Sodium Glutamate 10
17 2922.4400 4-Amino-4-Nitro Amino Diphenyle-2-Sulfonic Acid 10
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
18 2922.4900 Others 10 19 2924.2900 Aceto Aceto Ortho Toluidine N/A 20 2924.2990 Others 10 21 2927.0090 Others 5
22 2927.2900 6 Chloro 2-Amino Phenol 4-Sulfonic Acid N/A
23 2933.6900 Others (Cyanuric Chloride) 10
24 2934.3000
Compounds containing a phenothiazine ring system (whether or not hydrogenerated), not further fused.
10
25 2934.9990 Others (metamol BX) 10 26 3402.1110 Sulphonic Acid (soft) 10
27 3402.1300 Non-Ionic Emulsifiers 20 10% CD for drugs vide SRO. 372(1)/2002.
28 3804.0000 Residual lyes from the manufacture of wood pulp. 10
29 3804.1000 Reax 85-A (Dispersing agent) N/A
30 3824.9099 Others (Prepared binders) 25 10% CD for drugs vide SRO. 372(1)/2002.
Finished Dyes 31 3204.1100 Disperse Dyes 20 32 3204.1200 Acid Dyes 20
33 3204.1300 Basic Dyes 20 10% CD for drugs vide SRO. 372(1)/2002
34 3204.1400 Direct Dyes 20 35 3204.1600 Reactive Dyes 20
36 3204.1700 Pigments and Preparations thereon 20
10% CD for foot ware and printing ink vide SRO. 358(1)/2002
TEXTILE & TANNERY CHEMICALS
The textile industry uses a large number of textile chemicals for
processing of different types of textile fibers, natural as well as synthetic. Total
value of textile chemicals used in Pakistan is about Rs 2.0 billion annually.
The chemicals used in the textile industry are soaps, detergents, caustic
soda, softeners, wetting agents, emulsifiers, biocides, thickener, binders, acids,
dyes & pigments, waterproofing agents, foam stabilizers, optical brighteners,
stabilizers, hydrogen peroxide, bleaching powder, soda ash and sodium
carbonate.
Production Capacity
There are several small units manufacturing textile chemicals but still
large quantities are being imported. Followings are the capacities of textile and
tannery chemicals of eight major producers.
(MTPY)
Company Location Capacity
Calariant Jamshoro (Sindh) 20,000
BASF Karachi 15,000
M.B. Dyes Gadoon Amazai 12,000
Universal Karachi 8,000
ICI Karachi 6,700
Sandalbar Faisalabad 6,000
Nimir Chemicals Lahore 6,000
Delta Chemicals Lahore 2,550
TOTAL 62,250
Source: Respective Manufacturers Year:
2002
Other companies like CIBA, Universal Karachi, Sandalbar Faisalabad, MB
Dyes Gadoon, Penta Karachi, Beta Lahore are also producing textile chemicals.
Optical brightener, a textile and paper chemical, is being manufactured by Delta
Lahore and Clariant Faisalabad.
Sodium Dichromate, a tannery chemical, is being manufactured locally.
Nitro cellulose based lacquers and Fat liquors are also made locally by BASF for
tanning industry.
Hydrogen Peroxide
Hydrogen peroxide is prepared by Anthraquinone Auto Oxidation Process.
The process involves reforming of natural gas to obtain hydrogen gas. Hydrogen
is then absorbed in anthraquinone solution to form a complex compound called
hydroquinone. This compound is oxidized with oxygen to yield hydrogen
peroxide. Finally, hydrogen peroxide formed is separated in water phase which is
concentrated subsequently.
Hydrogen peroxide is used in a number of industries as oxidizing,
bleaching and sterilizing agent. It is safe and convenient to use because it is
environment friendly chemical. It is mainly used in the bleaching of fibers
whether cotton or wood pulp. It also enhances the absorbing capacity of fiber,
thus suppressing the requirement of other chemicals. In Pakistan, it is widely
used in the textile sector for bleaching, in food packaging, as a disinfectant and
clinically in the pharmaceutical sector. The textile and fabric sector consumes
about 90% hydrogen peroxide.
Imports
Imports of Hydrogen Peroxide for the last five years is given below:
Imports of Hydrogen Peroxide
(M. Tons)
(Million Rs.)
Year Quantity Value
1997-98 16,428 273
1998-99 16,252 241
1999-00 20,972 345
2000-01 22,882 450
2001-02 27,134 502
2002-03* 13,194 219
*July-December Source: Federal Bureau of
Statistics
Future Prospects
There are two hydrogen peroxide plants located in Nooriabad, Sindh and
Hattar, NWFP but both have been closed down. Presently all demand is being
met through imports only. There is good scope to establish a new plant of about
17,000 MTPY capacity. The estimated cost of the project is US$21 million or Rs
1.26 billion.
All Pakistan Textile Mills Association
Principal Office, APTMA House, 44-A, Lalazar off Moulvi Tamizuddin Khan Road,
Karachi-74000
Tel: 111-700-000, 5610181
Fax: 92-21-5611305
Email: [email protected] & [email protected]
Pakistan Tanners Association
46-C, 21st Commercial Street, Phase-II Extension,
Defence Housing Authority, Karachi
Tel: 92-21-5880180 / 5880184
Fax:92-21-5880093
Tariff Structure
Present tariff structure of Tannery Chemicals is given in the table below:
S.No.
HS Code Commodity Description Tariff 2002-03 Comments
1. 3201.1000 Quebracho extract 20 2. 3201.2000 Wattle extract 20 3. 3201.9010 Acacia catechu (cutch) and gambier 25 4. 3201.9020 Oak or chestnut extract 20 5. 3201.9030 Gambier 25 6. 3201.9090 Other 20
7.
3201.1000 Synthetic organic tanning substances 20
8.
3202.9010 Tanning substances, tanning preparations 25
9.
2847.000 Hydrogen Peroxide 10
10. 3202.9090 Other 20
WATER TREATMENT CHEMICALS
Several types of chemicals are used in the treatment of municipal and
industrial water. They include corrosion inhibitors, oxygen scavengers, chlorine,
alum, pH regulators, activated carbon and ion exchange resins.
Most of these chemicals are being imported. Some simple chemicals like
sulfuric acid, caustic soda, alums, chromates, activated carbon and chlorine are
being manufactured locally. Some companies are involved in formulation of
water chemicals from the imported chemicals.
FOOD CHEMICALS
Food Chemicals can either be natural or synthetic. They are used to give
colour to food, enhance taste and increase their shelf life etc. They can be
classified in six main groups:
o Preservatives
o Colours
o Flavour enhancers
o Antioxidants
o Stabilizers
o Sweeteners
A number of units are engaged in the manufacture of different Food
Chemicals in Pakistan in organized as well as in un-organized sector. Two major
units in organized sector are given below:
Products & Capacity
(MTPY) S. No.
Company Products Capacity
1. Habib Arkady Ltd. Karachi o Sorbital o Glucose o Fructose o Maltose
7,500 45,00045,00045,000
2. Leiner Pak Gelatine Ltd., Kala Shah Kaku
Lahore o Halal Gelatine
o Di-calcium Phosphate
3,000 15,000
Source: Manufacturers
These products are used in food industry as well as for the preparation of
animal feed.
Imports
The import of food chemicals for the last five years is given below:
(M. Ton) (Million Rs.)
Commodity 1997-98 1998-99 1999-00 2000-01 2001-02 Qty Value Qty Value Qty Val
ueQty Value Qty Value
Food Essences 10 5 8 4 12 7 14 8 6 4 Food Color 17 6 11 5 12 8 4 3 7 3 Flavour Material 175 91 227 135 254 172 315 243 258 195 TOTAL 202 102 246 144 278 187 333 254 271 202
Source: Federal Bureau of Statistics
Future Prospects
From the above figures it is evident that the major chunk of imports is of
Flavour materials. It is recommended that a feasibility study may be conducted
for their local manufacture.
Tariff Structure
The present tariff structure for Food Chemicals is provided in the table
given below:
S.No. HS Code Commodity Description Custom
Duty 2002-03
Comments
Raw Materials
1 3302.1010 Flavours concentrates 20 2 3302.1090 Others 20 3 3302.9000 Others 20
ESSENTIAL OILS AND PERFUMES
Essential oils are odoriferous organic volatile bodies of oil character. They
are insoluble in water but freely soluble in alcohol, ether, minerals and fatty oils.
They are composed of a number of chemical compounds like aldehydes, ketones,
hydrocarbons, alcohols, oxides and lactones, etc. They are used in soaps and
cosmetics, pharmaceuticals, confectionary, aerated water, attars, perfumery
items, scented tobacco and aggarbati, etc.
World standard Essential oils are not being manufactured in Pakistan.
Manufacture of essential oil is scattered all over the country in un-organized
sector using very low technology and without following any standard
specifications. As such for high quality use, these oils are being imported.
Import
The import of essential oils for the last five years is given in the table below:
(M. Ton) (Million Rs.)
1998-99 1999-00 2000-01 2001-02 2002-03* Commodity Qty Value Qty Value Qty Value Qty Value Qty Value
Essential oil of Orange
19 5 18 5 13 4 14 4 10 4
Essential oil of Lemon
10 3 12 3 21 7 12 6 5 1
Essential oil of Peppermint
22 8 31 10 26 8 8 3 4 2
Essential Oil of other Citrus fruit
19 5 6 2 9 3 15 6 5 4
Essential oil of Citronella
5 1 8 2 4 2 17 4 4 2
Oil Eucalyptus 6 1 9 2 8 2 6 2 2 1 Other essential oils 6 6 7 5 22 9 19 8 3 1 TOTAL 87 29 91 29 103 35 91 33 33 15 *July-December
Besides the imports of the essential oils a large volume of perfumery
items is also being imported as under:
Import of Perfumery Items
(M. Tons)
(Million Rs.)
Year Quantity Value
1997-98 985 392
1998-99 1,202 515
1999-00 1,412 519
2000-01 1,451 690
2001-02 1,839 893
Source: Federal Bureau of
Statistics
It can be seen from the above table that the import of perfumery items
has progressively increased from Rs. 392 million to Rs 893 million from 1997 to
2002.
Future Prospects
The manufacture of essential oils of international standard requires high
technology plants. The raw materials are leaves and flowers of natural plants,
which are available in abundance in Pakistan.
The manufacture of quality essential oils in Pakistan can open the door to
the manufacturing of perfumes in the country. This will not only save the
precious foreign exchange but will also generate employment and would result in
industrial growth.
Tariff Structure
Tariff structure of Essential Oils is provided in the table given below.
S.No. HS Code Commodity Description Tariff 2002-03 Comments
1 3301.1100 Of bergamot 10 2 3301.1200 Of orange 20 3 3301.1300 Of lemon 20 4 3301.1400 Of lime 20 5 3301.1900 Other 20 6 3301.2100 Of geranium 20 7 3301.2200 Of jasmin 20 8 3301.2300 Of lavender or of lavandin 20
9 3301.2400 Of peppermint (Mentha piperita) 20
10 3301.2500 Of other mints 20 11 3301.2600 Of vetiver 20 12 3301.2910 Of citronella 20 13 3301.2920 Of eucalyptus 20 14 3301.2990 Other 20 15 3301.3000 Resinoids 20
16 3301.9010 Concentrates of essential oils 20
17 3301.9090 Other 20
5. RECOMMENDATIONS
The recommendations provided hereunder have been developed after
extensive discussions with the stakeholders of chemical industry. The forum of
chemical industry stakeholders strongly believe that the chemical vision is a
must in order to increase output in the agriculture sector like cotton, sugarcane
and allied products and for value addition in agro based industry for example
conversion of molasses to ethanol and citric acid. Agriculture also need a strong
base of indigenous availability of fertilizers and pesticides at affordable prices to
the farmers. Since cotton is not used alone man made fibers i.e. polyester fiber
etc become important segment for value addition to Textile Industry.
In view of the global competition it was considered that the viability of the
projects should be judged at zero protection. The stakeholders unanimously
agreed that the Raw Materials and intermediate Raw Materials should be
available at globally competitive prices so that the final products are competitive
not only in Pakistan but also globally.
Industrial Policy for Chemical Sector
A comprehensive and consistent industrial chemical vision and policy is
necessary for a period of at least next 20 – 25 years. The consistency of this
policy needs to be ensured over its life.
Monitoring and Implementation Mechanism
o The progress on implementation of various visions and policies needs to be monitored periodically and at the highest level in the country and change made if parameters change.
o Previous experience has indicated that change in government policy
midstream results in colossal losses. This is particularly so in chemical
industry which is capital intensive. Therefore, there should be no change
in the government policy, which affects the industry badly.
Infrastructure
The existing infrastructure at Port Qasim, EPZs, Special and other
Industrial Zones need to be made self sufficient as far as requirement of power,
gas, water and other relevant offsite facilities such as, waste water treatment etc
are concerned. The government therefore, must increase spending on the
infrastructure projects. Creation of such infrastructure facilities by the
government shall reduce the project cost and enhance their viability. The
prospects of setting up industrial zones along motorway should be seriously
examined.
Other Infrastructure
o Provide 24 hours road transport facility from South to North and as concrete roads offer longer life compared to traditional coaltar roads and as the country is surplus in cement, feasibility of change over be examined.
o Provide liberal and cheap loans for housing and put in place special
financing line for mortgage finance for individuals and developers. o One window or one desk operation should just not remain a slogan and
easy and speedier documentation for loans processing, utility connections etc should become a reality.
Technology Upgradation o Develop technological base through local research and development. o Design and build strong industrial and engineering base through setting
up design and engineering institutes so that they can provide local engineering industry with the engineering fabrication drawings.
o Foreign designing and engineering firms may be asked to provide
fabrication drawings of all the plants and machinery. o A technology development fund may be created to encourage local
scientists and researchers for carrying out the R&D work.
o Scientists and Researchers should be offered market based salaries. o Common facilities Centre for the SMEs should be built and financed by the
government or foreign aid to provide services to large number of SMEs which may share a little portion of the cost of service.
o Any restriction for obtaining foreign technology may be completely done
away with.
Cost of Utilities
Presently, the cheaper feed gas to the fertilizer industry is being cross
subsidized by the industrial and commercial consumers.
o The development surcharge collected from gas producing fields is taken in
the consolidated government funds. This surcharge should be used to promote chemical industry where special natural gas is the raw material.
o The upfront cost of providing power, water and natural gas should be
borne by the government to partially offset the high capital cost of setting up projects in Pakistan.
Human Resource Development
Specialized courses within the discipline of chemical technology and chemical engineering be designed in consultation with the sub-sectors of the Chemical Industry like pesticides, Dyes and Pigments, Paints and Varnishes, Paper & Paper Board and Glass etc.
Development Fund
o There is a abundant liquidity available with banks at present. The government should therefore set up a special development fund for the Petrochemical and Chemical Industry to provide loans on easy terms.
Financial Health of Existing Industrial Investors
o The good financial health of existing industrial investors is a big
motivation for the potential investors. The government should identify the sectors of the industries which are operating below capacity utilization and offer them special incentives to operate to the 100% capacity in order to have low cost of production.
Quality Control and Environment Standards
o The private sector may be encouraged to come forward in various sectors to implement ISO standards and product specifications by Pakistan Standards and Quality Control Authority (PS&QCA). This shall re-inforce implementation of standards besides creating employment.
o Government should encourage chemical industries to get ISO 14000
certification by making it mandatory for all units by year 2005. Incentives for value addition of intermediate by products being exported
o The Sugar Industry has big potential of value addition through conversion of molasses to alcohol and ultimately to ethylene and Polyethylene or production of gasohol (gasoline + 20% ethanol).
o The bassages (Sugar Industry by product) presently being used as fuel for
the boilers need to be diverted to value added paper and paper board.
o Naphtha a by product from the refineries is presently being exported. Its value addition to produce Petrochemicals need government’s support and incentives.
o Local caustic soda is very expensive as compared to international market
because of charging all cost of chlorine which is being wasted. Its appropriate utilization shall reduce cost of caustic soda which is a raw material / intermediate raw material for a number of industries.
Taxes & Tariff
a) Rather than complete tax holiday, in order to encourage investment
it is proposed that income tax may be charged as follows:
o 10% for first 5 years
o 15% for next 5 years
o 20% for next 5 years
o Overall tax rate should be brought down to 25%.
o Zero tariff (through local manufacturers) on import of plant & equipment not locally manufactured.
b) All chemicals made by the domestic industry should have lower
sales tax (presently 15%).
c) Import tariff on all primary and secondary raw materials used by
Chemical sector be reduced to 5%.
d) The local equipment manufacturing industry should be exempted
from sales tax.
e) All raw materials in Chemical Industry not manufactured / available
locally should be subjected to higher sales tax (presently 20%).
f) Adequate differential between imported raw material and finished
product may be provided to local Chemical Industry to operate
properly.
Interest Rate
The interest rate on industrial loans may be revised as under:
o Loan on locally manufactured machinery 5%.
o Working capital loans 5%.
o Long term loans 5%.
Establishment of Chemical Villages o Specialty chemicals are small projects with very high value addition.
Government should identify locations and provide all infrastructure,
good residential, recreational facilities & utility facilities to develop
this area and encourage investors.
o If a Petrochemical is to be based on associated gas containing
ethane, potohar appears to be a good location. If we decide to
follow the molasses route, a place in Sindh or Punjab where large
number of sugar mills are located may be ideal.
Re-location of Plants o Chemical plants in China and Far Eastern countries are being closed
down for their re-location. Government may offer incentives for
their re-location to Pakistan after thorough survey of outmoded
technology / residual life.
General Recommendations
o Provincial Government’s may be advised to set up special fund to develop
infrastructure for exploration and utilization of local minerals like iron ore,
phosphate rock and manganese ore etc.
o Government may set up committees for revival of closed down / sick units
of chemical industry and submit recommendations.
o Government should allocate up to 10% of natural gas for setting up of
industries where basic raw material is natural gas like petrochemical
complex based on production of ethylene / polyethylene from associated
gases. Government may consider special gas fields to dedicate for
chemical industries. Gas may be priced equivalent to competing Middle
East, Gulf countries & Saudi Arabia.
o A strong database of various technologies and technology providers may
be developed for Chemical Industries.
o Cascading of tariff should continue for industrial growth in the country.
**********
Annexure-I
Summary of Coal Reserves of Pakistan
RESERVES (Million tons) Coalfields
Seam Thickness Range (Meters) Measured Mineable Total
Coal-rank
Status
BALUCHISTAN 1. Barkhan-Chamalar 2. Duki 3. Mach-Abegum 4. Sor Range-Degari 5. Pir Ismail Ziarat 6. Khost-Sharig-Harnai
PUNJAB
7. Makarwal 8. Salt Range
SINDH
9. Lakhra 10. Sonda-Thatta 11. Jherruck 12. Ongar 13. Indus East 14. Meting-Jhimpir 15. Badin 16. Thar Coal
0.3 – 2.0 0. – 2.3 0.6 – 1.3 0.3 – 1.3 0.4 – 0.7 0.3 – 2.3
0.3 – 2.0 0.15 – 1.2
0.3 – 3.3 0.3 – 1.5 0.3 – 6.2 0.3 – 1.5 0.3 – 2.5 0.3 – 1.0 0.55 – 3.1 0.2 – 22.81
54 1 14 9 15 2 13
55 5 50
3,192 244 60 106 18 51 10 3 2,700
32.4 0.6 8.4 5.4 9.0 1.2 7.8
32.7 2.7 30.0
1,915.2 146.4 36.0 63.6 10.8 30.6 6.0 1.8 1,620.0
217 6 50 23 50 12 76
235 22 213
184,623 1,328 3,700 1,823 312 1,777 161 16 175,506
HvCb to hvAb SubB to hvAb SubA to hvCb SubA to hbBb SubA to hvCb SubB to hvAb SubA to hvAb SubC to hvAb LigB to SubC SubC to hvBb SubC to hvCb LigB to SubA LigA to SubC LigA to SubC LigB to SubA
Dev. Dev. Dev. Dev. Dev. Dev.
Dev.
Dev.
Dev. Non-Dev. Non-Dev. Non-Dev. Non-Dev.
Dev. Non-Dev. Non-Dev.
NWFP 17. Hangu/Orakzai
18. Cherat/Gulla Khel
0.43 – 0.6 0.8 – 1.2
2 1 1
0.9 0.6 0.3
90 82 9
SubA to hvAb SubC to hvAb
Dev.Dev.
RESERVES (Million tons)
Coalfields Seam Thickness Range (Meters) Measured Mineable Total
Coal-rank Status
AZAD KASHMIR 18. Kotili
0.25 – 1.0
1 1
0.6 0.6
9 9
LigA to hvCb
Dev. Total 3,303 1,982 185,173
Source: Pakistan Energy Yearbook 2002
HvAb: High volatile A bituminous coal
HvBb: High volatile B bituminous coal
HvCb: High volatile C bituminous coal
SubA: Sub bituminous A coal
SubB: Sub bituminous B coal
SubC: Sub bituminous C coal
LigA: Lignite A coal
LigB: Lignite B coal
LigC: Lignite C coal
Annexure-II Range of Proximate Analysis of Pakistan Coal
Coal Fields Moisture % Volatile Carbon%
Fixed Carbon% Ash % Sulphur%
Caloric Value Cal/Kg.
BALOCHSITAN
Barkhan-Chamalar 1.1 – 2.9 24.9 – 43.5 19.4 – 47.1 9.1 – 36.5 3.0 – 8.5 12,500 - 14,357 Duki 3.5 – 11.5 32.0 – 50.0 28.0 – 42.0 5.0 – 38.0 4.0 – 6.0 10,131 – 14,164 Mach-Abegum 7.1 – 12.0 34.2 – 43.0 32.4 – 41.5 9.6 – 20.3 3.2 – 7.4 11,110 – 12,937 Sor-Range-Degari 3.9 – 18.9 20.7 – 37.5 41.0 – 50.8 4.9 – 17.2 0.6 – 5.5 11,245 – 13,900 Pir Ismail Ziarat 6.3 – 13.2 34.6 – 41.0 19.3 – 42.5 10.3 – 37.5 3.2 – 7.4 10,786 – 11,996 Khost-Sharig-Harnai 1.7 – 11.2 9.3 – 45.3 25.5 – 43.8 9.3 – 34.0 3.5 – 9.55 9,637 – 15,499
PUNJAB
Makarwal 2.8 – 6.0 31.5 – 48.1 34.9 – 44.9 6.4 – 30.8 2.8 – 6.3 10,688 – 14,029 Salt Range 3.2 – 10.8 21.5 – 38.8 25.7 – 44.8 12.3 – 44.2 2.6 – 10.7 9,472 – 15,801 SINDH
Lakhra 9.7 – 38.1 18.3 – 38.6 9.8 – 38.2 4.3 – 49 1.2 – 14.8 5,503 – 9,158 Sonda-Thatta 22.6 – 48.0 16.1 – 36.9 8.9 – 31.6 2.7 – 52.0 0.2 – 15.0 8,878 – 13,555 Jherruck 9.0 – 39.5 20.0 – 44.2 15.0 – 58.8 5.0 – 39.0 0.4 – 7.7 8,800 – 12,846 Ongar 9.0 – 39.5 20.0 – 44.2 15.0 – 58.8 5.0 – 39.0 0.4 – 7.7 5,219 – 11,172 Indus East 9.0 – 39.5 20.0 – 44.2 15.0 – 58.8 5.0 – 39.0 0.4 – 7.7 7,782 – 8,660 Meting-Jhimpir 26.6 – 36.6 25.0 – 34.0 24.1 – 32.2 8.2 – 16.8 2.9 – 5.1 7,734 – 8,612 Thar Coal 29.6 – 55.5 23.1 – 36.6 14.2 – 34.0 2.9 – 11.5 0.4 – 2.9 11,415 – 11,045
NWFP
Handu/Orakzai 0.2 –2.5 16.2 – 33.4 21.8 – 49.8 5.3 – 43.4 1.5 – 9.5 10,500 – 14,149 Cherat/Gulla Khel 0.1 – 7.1 14.0 – 31.2 37.0 – 76.9 6.1 – 39.0 1.1 – 3.5 9,386 – 142,171 AZAK KASHMIR
Kotli 0.2 – 6.0 5.1 – 32.0 26.3 – 69.3 3.3 – 50.0 0.3 – 4.8 7,336 – 12,338
Source: Pakistan Energy Yearbook 2002
Annexure-III
MINERAL RESOURCES OF PAKISTAN
Production Minerals
Reserves
Units 1997-98 1998-99 1999-00 2000-01
2001-02 (P*)
China Clay 4.9 million tons
000 Tons 68 67 63 47
Chromite Large deposits
000 Tons 35 18 26 16
Coal 185 billion tons
000 Tons 3,145 3,378 3,164 3,269
Dolomite Very large deposits
Million Tons
116 199 348 353
Fire Clay Over 100 million tons
000 Tons 94 153 139 164
Fullers Earth Large deposits
000 Tons 18 16 19 13
Gypsum Anhydrite
350 million tons
000 Tons 307 242 355 364
Lime Stone Very large deposits
000 Tons 11,166 9,466 9,589 10,868
Magnesite 12 million tons
Million Tons
3.4 3.5 4.5 4.6
Rock Salt Over 100 million tons
000 Tons 971 1,190 1,358 1,394
Silica Sand Very large deposits
000 Tons 135 158 167 155
Sulphur 0.8 million tons
Million Tons
22 19 23 17
Soap Stone 0.6 million tons
000 Tons 49 42 48 47
Baryte 30 million tons
000 Tons 30 18 26 28
Bauxite Over 74 million tons
Million Tons
28.4 41.4 48.2 35.1
Iron Ore Over 430 million tons
Million Tons
5.5 38.2 46.0 24.8
Crude Oil 296 million barrels
000 barrels
20.5 20.0 20.4 21.1
Natural Gas 492 billion cu. m.
Billion Cu. m.
19.82 21.09 23.17 24.78
P*=Provisional (Jul-March) Source: Economic Survey 2001-02
Annexure-IV
C H R O M I T E
Chromite is the only important ore of chromium; crystals and pure forms are
rare. It is also known as chrome iron ore and it has three grades called, Metallurgical
grade, Refractory grade and Chemical grade. The various chemical compounds made
from chromite are given below:
• Potassium dichromate (K2Cr2O7)
• Lead chromate (PbCrO4), also known as chrome yellow
• Chromic Oxide (Cr2O3), also known as chrome green
• Di Chromates such as K2Cr2O7.
General Uses
Alloys and Ferro alloys with steel, Refractory, Chrome-Magnesite bricks,
Chemical Industry-Chrome pigments, chromates, di chromates, Chrome plating,
Hot extrusion dies, Spray coatings, Components of pumps & valves, Audio/Video
recording tapes, Metallic film on semi conductor devices, Greases, Ceramics,
Plastics, Surface alloys, Oxidizing agents, Catalyst for scientific experiments,
Tanning of leather, In textile industries as mordant, Glass Industry, Pigments, For
the Production of Chromic Acid, For Anodizing Aluminum
C O A L
Coal is an extremely heterogeneous material formed by geological process.
Different grades are called Peat, Lignite, Sub-Bituminous, Bituminous and Anthracite.
Coal is used as a source of energy, production of chemicals and coal gasification.
1. Coal as a source of heat energy:
It is widely used to generate heat energy for:
Electricity generation, Steel production, Cement manufacturing
Of all the electricity generated worldwide, about 37 % is produced using coal.
It is a reducing agent in the metallurgical industries, with 70 % of world steel
production dependent on coal.
2. Chemical products made from coal:
Coal is an important source of raw material and several chemical products can
be produced from coal. Refined coal tar is used in the manufacture of a range of
chemicals as listed below.
Pitch, Creosote oil, Naphthalene, Phenol, Pyridine, Benzene, Toluene, Xylene
Ethylene, Propylene, Polyesters, Plastics, Synthesis Gas, Acetic Acid, Acetic
Anhydride
Ammonia gas recovered from coke ovens is used to manufacture ammonia
salts, nitric acid and fertilizers.
3. Coal Gasification:
It is a process by which Coal is converted to gaseous products by reaction with
air, oxygen, steam or mixture of these. The resulting gas can be used as fuel gas or
as synthesis gas for other chemical products.
C H I N A C L A Y (Kaolin)
A white-burning aluminum silicate, which due to its great purity has a high
fusion point and is the best refractory of all clays. Its composition: (Alumina, Silica,
plus impurities and water).
Chemicals made from China Clay and their uses:
Aluminum Sulfate
Sizing paper, lakes, alums, dyeing mordant, foaming agent in foams, cloth
fireproofing, white leather tanning, catalyst in manufacturing ethane, pH control in
paper industry, water proofing agent for concrete, clarifier for fats and oils,
lubricating compositions, deodorizer and decolorizer in petroleum refining, sewage
precipitating agent and for water purification, food additive.
Aluminum Chloride
Pharmaceuticals, cosmetics, pigments, special papers, photography, textile
(wool)
Aluminum Ethylate
Reducing agent for aldehydes and ketones, polymerization catalyst.
Aluminum Iodide
Catalyst in organic synthesis.
Aluminum Nitrate
Textiles (mordant), leather tanning, manufacture of incandescent filaments,
catalyst in petroleum refining, nucleonics, anticorrosion agent, antiperspirant.
G Y P S U M (Ca2SO4 2H2O)
It is an abundantly found mineral, having monoclinic crystalline structure, clear
white to gray, yellowish or brownish in colour. Lustre is subvitreous to pearly,
hardness is 2 on Mohs scale, specific gravity is 2.3. It is calcined at 190-200oC to
produce plaster of Paris.
Gypsum is part of the calcium sulfate family of chemicals. The three important
calcium sulfate compounds include:
• Gypsum: Calcium Sulfate Dihydrate (CaSO4 -2H2O ).
• Anhydrate: Anhydrous Calcium Sulfate (CaSO4).
• Plaster of Paris: Calcium Hemi hydrate ( CaSO4-1/2H2O).
Uses
Moulding and casting plaster, Fire proofing, Cement, Textile finishing, Tile and
plaster, Source of sulfur and sulfuric acid, Polishing powders, Paints (white pigment,
filler, drier), Paper (size filler, surface-coating), Dying and calico printing, Metallurgy
(reduction of zinc minerals), Drying industrial gases, solids and many organic liquids,
Quick setting cements, molds, and surgical casts, Wallboard, Food additive,
Toothpaste, Medicine, Soil amender in the agricultural industry; to improve water
penetration and increase the level of calcium in the soil
I R O N O R E S
Iron ores are rocks or deposits from which iron can be extracted. Iron ores can
also be used as important source of raw material for making various types of
chemicals ; few of them are listed below ;
Ferric hydroxide, Ferric chromate, Ferric, dichromate, Ferric citrate, Ferric
nitrate, Ferric phosphate, Ferric sodium oxalate
These chemicals have several industrial and domestic uses such as:
Treatment of sewage and industrial wastes, Etching agent for engraving,
Photography and printed circuitry, Mordant, Oxidizing, chlorinating, and condensing
agent, Disinfectant, Pigment, Food additive, Water purification, Soil conditioner,
Polymerization and condensation catalyst, Metal pickling, Metallurgy, Medicines
R O C K S A L T (NaCl)
Rock salt is naturally occurring mineral in Salt Range region. It is also known
as common salt and it is soluble in water and melts at 804oC. Salt is used for the
manufacture of many industrial and inorganic chemicals and allied products. Chemical
production is a major market for salt. 95% of salt used by the chemical industry is in
the manufacture of soda ash, chlorine and caustic soda.
Some important chemicals made from rock salt • Caustic soda:
An element used in making glass, rayon, polyester and other synthetic
fibers, plastics, soaps and detergents.
• Chlorine:
It is used primarily in producing polymers that are used in manufacture of
plastics, synthetic fibers and synthetic rubber; also used in crude oil refining, for
making pesticides; in household bleach, water treatment and sewage treatment.
• Hydrogen:
It is used in the production of ammonia, ethanol and aniline; hydrocracking,
hydroforming and hydrofining of petroleum, hydrogenation of vegetable oils,
hydrogenolysis of coal, reducing agent for organic synthesis and metallic ores,
reducing atmosphere to prevent oxidation, etc.
• Liquid Sodium:
In recent years, it is used as coolant, or heat exchanger, which is an essential
element in the heat transfer process.
• Metallic Sodium:
It is used in making brass and bronze sodium cyanide,which in turn is used in
making case-hardened steel and fumigating materials, in indigo and other
synthetic dyes.
• Sodium sulfate:
Used extensively in the manufacture of pulp and paper, dyes and ceramic glazes.
• Sodium carbonate: (Soda Ash)
Used in manufacture of glass, pulp & paper and rayon.
• Hydrochloric acid:
Used in making synthetic rubber and in cleaning gas and oil wells.
• Sodium bicarbonate:
Used in textile manufacturing, processing leather, making glass and bakery
products.
• Sodium nitrate:
An ingredient in fertilizers and explosives.
General Uses
Industrial Salt, Table Salt, Hide curing salt, Road stabilization salt, hemical
intermediate, Analytical reagent, Oxidizing agent, Electro plating, Mirrors,
Photography, Heat treatment of metals, Plasticisers in toothpaste, Varnish hardener,
Food preservatives, Weedicide & Fungicide, Dyes/pigments, Pharmaceuticals, Zinc
etching, Indelible ink, Textile dying, Bactericide and Algecide in swimming pools,
Bleaches / detergents and cleaning compounds, For water and sewer treatment, Salt
is used to fix and standardize dye batches in the textile industry, It is used in metal
processing and secondary aluminum making, to remove impurities.
R O C K P H O S P H A T E
Rock Phosphate is a sedimentary rock composed chiefly of phosphate mineral.
It is characterized by a tetrahedral ionic group of phosphate and oxygen P2O5. It is an
important source of raw material for the manufacture of different chemicals. It has a
number of uses as given below.
Uses
Fertilizers (SSP & TSP, NP, DAP), Chemicals (Phosphorus, phosphoric acid and
its compounds), Poultry & stock feed iron smelting, Reducing agent, Analytical agent,
Lube oil additives, Rubber additives, Flotation agents, Matches, To dope semi
conductors, Catalyst, Chlorinating agent, Insecticides, Pigments, Mono & Di-calcium
phosphate, Water treatment chemicals, Animal feeds
M A G N E S I T E (MgCO3)
It is the mineral form of magnesium carbonate, usually massive
and white, with hexagonal symmetry. Magnesite can be used as raw material
for the manufacture of following different chemicals;
Magnesium Acetate, Magnesium Amide, Magnesium Ammonia Phosphate,
Magnesium Hydroxide, Magnesium Citrate (di basic), Magnesium Fluoride,
Magnesium Fluosilicate, Magnesium Silicate, Magnesium Sulfate, Magnesium
Sulfite, Magnesium Tri Silicate, Magnesium Gluconate, Magnesium Oleate
Uses of the above magnesite based chemicals Catalyst for polymerization, Fire retardant for fabrics, Fertilizer, Laxative,
Dietary supplement, Concrete hardeners, Water proofing, Mothproofing, Magnesium
Casting, Intermediate for obtaining magnesium metal, Sugar refining, Fuel oil
additive, Sulfite pulp, Dentifrices, Color retention agent, Frozen desserts, Varnish
driers, Lubricant for plasticizers, Emulsifying agent.
Other uses
Basic refractory furnaces lining, Mg chloride cement (quick setting), Mg SO4
(Epson salt), Mg CO3 /MgO (toilet products), Mg CO3 (heat insulation), Pharmaceutical
compounds, Metallurgical processes, Photography, Antiseptic Agent, Deodoran,
Rubber reinforcing agent, Inks, Free-running table salts, Textile printing, Insecticides,
Ceramic, Glass, Bleaching, Filler in rubber and medicine, Fire proofing, Cosmetics,
Paper pulp, Industrial odor absorbent, Filtering medium Anti caking agent, Fungicides,
Analytical reagent
L I M E S T O N E
Limestone is a widely occurred mineral. It is a sedimentary rock compound
dominantly (more than 95% of CaCO3) principally in the form of calcite. Lime Stone
has a number of uses.
Uses Calcium Oxide, Cement, Metallurgical use in blast furnace, Metallic calcium &
alloys used as reducing agents in production of Ur, Th, Zr & Cr , Manufacture of soda
ash by ammonia soda process, Sugar processing to precipitate impurities, Paper &
pulp, Glass manufacturing, Bleaching powder, Ceramics - as glaze, Textile, Floatation
separation concentration, Sewage treatment, Agricultural uses, Soil stabilization, Road
paving Mixture, Rock & Mineral wool, Optical use Iceland spar, Leather dressing,
Varnish manufacturing, Calcium carbonate, Abrasive, C02 manufacture, Water
treatment, Silica brick manufacture, Grease manufacture
Annexure-V
SPECIALTY CHEMICALS
Chemicals
Usages
1. Aliphatics: Acids, acid anhydrides, salts Succinic acid
Succinic anhydride
Disodium succinate
Dichloro succinic anhydride
Hexyl succinic anhydride Hexenyl succinic anhydride Octyl succinic anhydride Octenyl succinic anhydride Nonyl succinic anhydride
Alkyd and polyester intermediate pharmaceutical intermediate Food additive, pharmaceutical and photochemical intermediate Organic intermediate Intermediate for synthetic resins, lubricants, detergents, hardener for epoxide resins Intermediate for synthetic resins, lubricants, detergents, hardener for epoxide resins
Nonenyl succinic anydride Decyl succinic anydride
Intermediate for synthetic resins, lubricants, detergents, hardener for epoxide resins
Decenyl succinic anhydride
Intermediate for synthetic resins, lubricants, detergents, hardener for synthetic resins.
Dodecenyl succinic anhydride Tetrapropenyl succinic anhydride
Intermediate for detergents, synthetic resins, lubricants, agrochemicals, hardener for epoxide resins.
Tetradecenyl succinic anhydride
Intermediate for detergents, synthetic resins, lubricants, hardener for epoxide resins
Maleic acid
Organic intermediate
Chloro maleic anhydride
Organic intermediate
Dicholoro maleic anhydride
Organic intermediate
Calciumfumarate
Food additive
Glyoxylic acid
Agrochemical and pharmaceutical intermediate
Thiodipropionic acid
nic intermediate, food additive antioxidant
Esters
Dimethylsuccinate
Organic intermediate
Diethylsuccinate
Organic intermediate
Diisopropylsuccinate
Organic intermediate
Di-n-butylsuccinate
Organic intermediate
Diisobutylsuccinate
Organic intermediate
Di-tert. Butyl succcinate
Organic intermediate
Di-tert. Amyl succinate Di-tert.pentyl succinate
Organic intermediate
Di-2-ethylhexyl succinate Dioctylsuccinate
Organic intermediate
Dimethylacetyl succinate
Organic intermediate, starting material for manufacturing pyrazolone dyes (Tartrazine)
Diethyl acetyl-succinate
Organic intermediate, starting material for manufacturing pyrazolone dyes (Tartrazine)
Dimethyl succinylo-succinate 2,5-Dihydroxy-1, 4-cyclo-hexandiene-1, 4-dicarboxylic acid dimethylester
Dyestuff intermediate (Quinacridone pigments)
Diethyl succinylo-succinate 2,5-Dihydroxy-1, 4-cyclo-hexandiene-1, 4-dicarboxylic acid diethylester
Dyestuff intermediate (Quinacridone pigments)
Sodium di-n-butyl sulfosuccinate
Detergent
Sodium diisobutyl sulfosuccinate
detergent
Sodium di-n-octyl sulfosuccinate
Detergent
Sodium di-2-ethylhexyl sulfosuccinate
Detergent
Dimethylmaleate
Organic intermediate, monomer for copolymers
Diethylmaleate
Organic intermediate, monomer for copolymers
Di-n-butyl maleate
Monomer for copolymers
Diisobutylmaleate
Monomer for copolymers
Di-n-octyl maleate
Monomer for copolymers
Di-2-ethylhexyl maleate Dioctylmaleate
Monomer for copolymers
Bis-(2-hydroxy-ethyl) maleate
Organic intermediate, monomer for copolymers
Dimethylfumarate
Organic intermediate, monomer for copolymers
Diethylfumarate
Organic intermediate, monomer for copolymers
Di-n-butyl-fumarate
Monomer for copolymers
Di-n-octyl-fumarate
Monomer for copolymers
Di-2-ethyl-hexylfumarate Dioctylfumarate
Monomer for copolymers
Methyl 2-chloro-propionate Chloropropionic acid methylester
Organic intermediate
Methyl-2-methoxy-2-hydroxy acetate Glyoxylic acid methyl-ester hemiacetal
Organic intermediate
Aldehydes, ketones, acetals Glutardialdehyde Pentanedial
Desinfectant organic intermediate
Adipicdialdehyde Hexanedial
Desinfectant organic intermediate
Suberaldehyde Octanedial
Desinfectant organic intermediate
Methylglyoxal Pyruvic aldehyde
Organic intermediate
1,4-Cyclohexandione
Organic intermediate
Malondialdehyde tetra-methylacetal 1,1,3,3-Tetramethyoxy-propane
Organic intermediate
Succinic dialdehyde tetramethylacetal
Organic intermediate
Succinic dialdehyde dimethylacetal 2,5-Dimethoxy tetrahydrofuran
Organic intermediate
Methylglyoxal di-methylacetal
Pharmaceutical and agrochemical intermediate
Ethylglyoxaldimethyl-acetal
Pharmaceutical and agrochemical intermediate
Chloroacetaldehyde-dimethylacetal
Organic intermediate
Chloroacetaldehyde-diethylacetal
Organic intermediate
Cyanoacetaldehyde dimethylacetal
Organic intermediate
Cyanoacetaldehyde diethyl acetal
Organic intermediate
Nitrogen compounds: amines, amides, nitriles, guanidine derivates 2, 5-Dichloropentyl-amine hydrochloride
pharmaceutical intermediate
2,2,6,6-Tetra-(3-aminopropyl)-cyclohexanone
hardener for epoxide resins
3-Aminocrotonitrile Diacetonitrile
organic intermediate
N-tert. Butylacryl-amide
Comonomer for polyacrylamides
Diacetone acryl-amide
Comonomer for polyacrylamides
Isobutoxy methyl acrylamide
Comonomer for polyacrylamides
N, N’-Methylen-bis-acrylamide
Crosslinking agent for polymers
Succinimide
Organic intermediate
Sodium succinimide
Organic intermediate
Pottasium succinimide
Organic intermediate
N-Chlorosuccinimide
Chlorinating agent in organic synthesis
N-Bromosuccinimide
Brominating agent in organic synthesis
2-Methylenglutaro-nnitrile
organic intermediate
Guanidine carbonate
Organic intermediate
Guanidine hydro-chloride
Organic intermediate
Guanidine nitrate
Organic intermediate for explosives
Guanidine sulfate
Organic intermediate
Prim. Guanidine phosphate
Flame retardant
Sec. Guanidine phosphate
Flame retardant
Guanidine sulfamate
Organic intermediate, flame retardant
Guanidine acetate
Organic intermediate
Aminoguanidine bicarbonate Organic intermediate 2. Aromatics:
Acids, salts Aluminiumdibenzoate
Additive for poly olefines
Vanillic acid
Organic intermediate
Anthranilic acid 2-Aminobenzoic acid
Agrochemical and pharmaceutical intermediate
2, 5-Diaminotere-phthalic acid (DATA)
dyestuff intermediate (Quinacridone pigments)
Methylene disalicylic acid (MDA)
Pharmaceutical intermediate
Esters
n-Butylbenzoate
organic intermediate
Dimethylphthalate
Special plasticiser
Diethylphthalate
Special plasticiser
Dicyclohexylphthalate
Special plasticiser
Di-(methylcyclohexyl_ phthalate
Special plasticiser
Aldehydes Vanilline 4-Hydroxy-3-methoxy-
benzaldehyde
Organic intermediate, flavour and fragrance substance
Ethylvanilline 4-Hydroxy-3-ethoxy-benzaldehyde
Flavour and fragrance subsance
Miscellaneous products 2-Aminobenzotrifluoride
dye-stuff intermediate
3. Hetrocycles:
Hetrocycles with 1 nitrogen atom
3-Aminopyridine
pharmaceutical intermediate
2-Chloro-3-amino-pyridine
pharmaceutical intermediate
2,6-Dichloro-3-amino-pyridine
pharmaceutical intermediate
3-Methyl-5-amino-isoxazole
organic intermediate
Hetrocycles with 2 nitrogen atoms
4(5)-Methylimidazole
organic intermediate
4-Methyl-5-hydroxymethylimidazole, hydrochloride
organic intermediate
Dimethylhydantoin
Organic intermediate
Carboxypyrazolone
Dye-stuff intermediate
Carbethoxypyrazolone
Dye-stuff intermediate
M-Aminocarboxy pyrazolone
Dye-stuff intermediate
M-Nitrocarboxy-pyrazolone
Dye-stuff intermediate
P-Nitrocarboxy-pyrazolone
Dye-stuff intermediate
Carboxypyrazolic acid-4 Pyrazolone t
Dye-stuff intermediate
1-(2’-Sulfophenyl)-3-carbethoxy-5-pyrazolone
Dye-stuff intermediate
1-(4-Amino-2-sulfophenyl)-3-carboxy-5-pyrazolone
Dye-stuff intermediate
Methylcarboxypyrazolic
Dye-stuff intermediate
Carboxypyrazolone-2,5-disulfonic acid
Dye-stuff intermediate
1-Phenyl-3-methyl-5-aminopyrazole
Dye-stuff intermediate
3,6-Dichloropyridazine
pharmaceutical intermediate
2-Aminopyrimidine
pharmaceutical intermediate
2-Amino-4-methyl-pyrimidine
pharmaceutical intermediate
2-Amino-4, 6-dimethyl-pyrimidine
pharmaceutical intermediate
2-Methylquinoxaaline
agrochemical intermediate
Heterocycles with 3 nitrogen atoms
1,2,4-Triazole
agrochemical and pharmaceutical intermediate
Malamine phosphate
Flame retardant for synthetic resins
Melamine mono oxalate
Hardener for aminoplast resins
Melamine cyanurate
Flame retardant for polyamide
2-(Diethoxyphosphinyl ethyl)-guanamine
flame retardant
Isocyanuric acid Gyanuric acid
Organic intermediate for synthesis of isocyanurates
Trichloroisocyanurate TCIC
Bleaching and scrubbling agent, desinfectant for water treatment, chlorinating agent in organic synthesis.
Sodium dichloroiso-cyanurate dihydrate
Bleaching and scrubbling agent, desinfectant for water treatment
Tris-(2-hydroxyethyl)-isocyanurate THEIC
Modifier for polyester, alkyd and polyurethane resins
Triallylisocyanurate TAIC
Crosslinking agent for vinylpolymers and unsaturated polyesters
Bromotriallyl-isocyanurate (Br-TAIC)
Flame retardant for polypropylene, polystyrene, ABS and thermoplastic polyesters
Tris-(2-carboxy-ethyl) isocyanurate TCEIC
Component for alkyd resins, raw material for plasticisers and lubricants
Tris-(epoxypropyl) isocyanurate TEPIC Triglycidyliso-cyanurate
Component for epoxide resins
Tris-(3-aminopropyl) isocyanurate
Hardener for epoxide resins
1-Phenyl-3, 6-dimethyl-4-hydroxy-pyrazolo-pyridine
organic intermediate
7-Amino-2, 5-dimethyl-pyrazolo (1,5-a)-pyrimidine
organic and pharmaceutical intermediate
Annexure- VII
REPORTS ON CHEMICAL INDUSTRY REPORT AUTHOR YEAR
1- Development of Chemical
Industry in Pakistan. Development Institute Karachi
1975
2- Potential for Traditional and Industrial Exports from Pakistan
Chemical Consultants (Pakistan) Ltd. Pakistan
1976
3. Report of Expert Working Group on Chemicals for 7th Five Year Plan (1988-93)
S.S. Jafferi, Chairman Of the Working Group
1987
4 Review of Chemical Industry In Pakistan
Investment Advisory Center of Pakistan
1990
5. Chemical Industry in Pakistan Industrial Research Services, Karachi
1992
6 Report of Sub Committee on Chemicals (Prime Minister’s high level committees)
Sub-committee 1996
7. Report of the Working Group on Industrial development (Ninth Five Year Plan, 1998-2003)
Working Group
1997
8 Development of Non- traditional Industrial Sector – (Chemicals)
Sub-committee on Chemicals
1998
9. Industrial Efficiency Improvement and Development Strategy Study – Chemical Sector
Investment Advisory Cell of Pakistan and others
1998
10. Report of the Task force on Industrial Investment
Task Force by Punjab Government
2002
Name of the Report:-
Development of Chemical Industry in Pakistan (1975-80)
Date of Completion:-
June, 1975 Objectives & Scope:- The report was prepared for the Planning Division based on an agreement
dated 14-11-1974. The objective was to prepare an outline for the
development plan for the Chemical Industries for the Five Year Plan 1975-80. It
covers all sectors relating to the chemical industry including pharmaceuticals.
Synopsis:-
The report presents a review of chemical industries up to mid 1974 and then assesses
dynamics of development during the five year plan 1975-80. It consists of 138 pages
divided in to 5 chapters.
Chapter-1 describes the norms of planning and presents detailed targets in all chemical
sectors. An investment target of Rs 1.8 billion for the chemical industry in 5 year plan
was allocated to different sectors based on the international pattern. Thus, agro-based
sector was allocated 20%, organic synthesis (including pesticides) 50%, mineral based
compounds 10% and petroleum & gas based (including fertilizers) industries 20% of
the target investment. Various projects were also proposed in each chemical sector to
realize the five year plan.
Chapter-2 gives an overview of the global chemical industry with shares of various
sectors. It also lists optimum economic sizes of some chemical plants.
Chapter-3 includes a review of chemical industry in Pakistan giving number of units in
each sector, employment, assets, production etc.
Chapter-4 deals with techno-economic considerations of various chemical sectors.
These sectors have been divided into agro based, pharmaceuticals, organics, mineral
based and petrochemicals. Each sector has been discussed in detail including the raw
materials, production, imports, final usages and investment involved. This section is the
core of the report and includes valuable information / data.
Chapter-5 includes bibliography and reference list.
Name of the Report:-
Potential for Traditional and Industrial Exports from Pakistan Authors:-
Chemical Consultants (Pakistan) Ltd. Karachi
Date of Completion:-
March, 1976 Objectives & Scope:-
This report was prepared for the Planning Division and it also
covers industries other than Chemical Industry. The report aimed at analyzing
in detail the potentials of all type of industries in Pakistan.
Synopsis:-
The report is split in two volumes spreading over 524 pages. Volume-II
of this report includes chemical industry and thus only this volume is
under our review.
Chapter-20 & 21 deals with the processing & chemical industries and
export potential for these items. The following items related to chemical
industry have been discussed in the report from the export potential
point of view.
• Ethyl alcohol
• Paints & Varnishes
• Soda Ash
• Caustic Soda/Chlorine
• Yeast
• Citric acid
• Furfural
• Casein
• Mono Sodium Glutamate
• Oxalic acid
• Sodium Nitrate and Nitrite
• Activated earth
The availability of raw materials, agro based and mineral based, has also
been discussed for the production of above chemicals.
The report contains good analysis of export potential of Pakistani
products.
Name of the Report:-
Report on Expert Working Group on Chemicals for 7th Five Year Plan (1988-93)
Authors:-
The Working Group on Chemicals, Petrochemicals, Fertilizers and Pesticides. The Working Group consisted of 24 members and 17 co-opted members from government, public sector and private sector.
Date of Completion:-
March, 1987 Objectives & Scope:-
To review the prevailing situation of chemicals, petrochemicals,
fertilizers, pesticides and pharmaceuticals sectors and to suggest new projects
to encourage investment. Recommendations should also be on the transfer of
technology, quality of products and competitiveness in the export market.
Synopsis:-
The report was prepared for the Planning Division and it comprises of
280 pages. The main report is spread over 47 pages and the rest
comprises of four annexures.
The main report reviewed situation of industry in chemicals,
petrochemicals, fertilizers and pesticides sectors and proposed new
projects and set of recommendations for each sector. The proposals
include setting up a naphtha cracker based on associated gasses and
manufacturing of PVC from molasses.
Annexure-A of the report focuses on policy framework for 1988-2003.
With the brief reviewing of the prevailing situation of the chemical
industry, recommendations have been made for future development.
Annexure-B is a detailed analysis of the general chemical industry with
proposed projects. 33 industries have been discussed with capacities
production, imports and consumption in each case. The section contains
useful data on above parameters.
Annexure-C deals with petrochemical industry in detail in 50 pages. The
installed capacities and production of all petrochemical plants are listed
in this section. The demand patterns have been analyzed. Availability of
raw materials has been discussed and future projects have been
proposed based on various raw materials available in the country.
Annexure-D covers the fertilizers sector in detail. It spreads over 52
pages and includes excellent data and information on this sector. The
last part of this annexure deals with pesticides, its consumption and
demand.
Name of the Report:-
Review of Chemical Industry of Pakistan Authors:-
Investment Advisory Centre of Pakistan (A team comprising of chemical engineers, management and financial experts, economist and data analysts)
Date of Completion:-
March, 1990 Objectives & Scope:-
The report focuses on 25 basic chemicals but excludes
pharmaceuticals and petrochemicals. It assesses the existing situation of the
chemical industry, supply & demand situation and impediments and proposes
future strategy.
Synopsis:-
The report presents sectoral studies of 25 chemical industries based on
1988-89 situation. These industries include Soda Ash, Caustic Soda,
Sulphuric Acid, Guar Gum, Sodium Silicate, Nitric Acid, Industrial
Alcohol, Citric Acid, Fertilizer, Pesticides, Paints, Hydrogen peroxide,
Dyes, Detergents, Essential Oils, Inks, Inedible oils/Fats, Industrial
Gases, Synthetic Resin, etc.
The report includes installed capacities, actual production, imports,
demand analysis, prices and technology in all cases. Generally, 4 years
production and import data have been discussed in the report. Names
and capacities of major producers have also been included.
This report is an extensive study of the chemical sectors and it contains
sufficient data in each case. The report is silent on impediments or
strategical future plans.
Name of the Report:-
Chemical Industry in Pakistan Authors:-
Industrial Research Service, Karachi
Date of Completion:-
January, 1992 Objectives & Scope:-
The objective of the report is to survey the existing chemical
industry. The report covers basic chemicals, petrochemicals, fertilizers,
pesticides and paints sectors.
Synopsis:-
The report is compiled by a team of experts, it contains data for past 5
– 10 years and it comprises of 316 pages. The global outlook covers
unnecessary details on the performance of international companies but
review of the local industry is more relevant.
Basic chemicals in the report covers Soda Ash, Caustic Soda and
Sulphuric Acid. The report discusses production, growth, capacity
utilization, imports, demands and prices of these products along with
their major producers. The discussion on petrochemicals includes the
existing status of petrochemical facilities, plastic industry, production,
import and demand in Pakistan. It discusses the opportunity of using
the local naphtha to feed a naphtha cracker for the manufacture of
petrochemicals. It also sees possibility of petrochemical production from
natural gas, associated gases, molasses and coal. It has been stated
that 3.9 tons of molasses are required to produce one ton of ethyl
alcohol, 2.88 tons to produce one ton PVC and 2.98 tons to produce one
ton of ethylene glycol. The report mentioned that there are no
production facilities for the basic petrochemicals such as ethylene,
propylene, butadiene and methanol. It has been suggested to install a
naphtha cracker in the country based on the locally available naphtha.
The fertilizer sector has been discussed in detail with brief profiles of all
fertilizer units. The production, import and demand of all types of
fertilizers have been covered along with the fertilizer policy. Data on
consumption, price, subsidy on fertilizers have been included for the
past 5 – 10 years. The latest financial performance of Dh Chemicals,
Engro Chemicals, FFC and NFC has been discussed in detail.
The pesticides sector has been covered with description and data on the
type of sprays, imports, sales and prices from 1980 to 1990. The report
includes working results of few major players in this sector. M/s Ittehad
Pesticides has been discussed as producer of BHC and DDT pesticides.
The report discusses paints sector with its local production form 1983-
84 and availability of its raw materials, which were mostly imported at
that time. The report also includes data on imports and exports of
paints. The company profiles and performance of ICI Berger Paints,
Buxly Paints and Kausar Paints have been included in the report.
Name of the Report:-
Report of the Sub-committee on Chemicals Authors:-
A sub-committee on Chemicals under the Prime Minister’s High Level
Review Committee on Science & Technology.
Date of Completion:-
July 1996
Objectives & Scope:-
The sub-committee on Chemicals focused on the following major
sectors of the Chemical Industry:
• Fertilizers
• Basic Chemicals
• Synthetic Fibers
• Petrochemicals
The objective of the study was to review the existing situation and to make
recommendations for improvement.
Synopsis:-
This is a 50 page report prepared by the sub-committee comprising of eminent
industrialists and government officials.
The report reviews the prevailing situation in the chemical sector and discusses its
pitfalls specifically related to the dyes, petrochemicals and fertilizers sectors.
The next section of the report deals with the capacities, production, consumption and
major producers existing in 1995-96. Nitrogenous and Phosphatic Fertilizers, Soda
Ash, Caustic Soda, Sulphuric Acid, Plastics, Aromatics (BTX), Carbon Black and all
synthetic fibres have been discussed.
By enabling the import data, the report indicates a promising potential for chemical
industry in Pakistan. The future projects recommended by the sub-committee were the
followings:
• Naphtha cracker based on local / imported naphtha.
• Soda Ash /Caustic Soda manufacturing from Rock Salt.
• Hydrogen Peroxide 10,000 tons per year capacity.
• Utilization of molasses for the manufacture of chemicals.
• Manufacture of formic acid, acetic acid, barium carbonate, viscos rayon
and petrochemicals.
• Locally produced coaltar and asphalt to be used for the production of
various enamels and protective coatings.
• Use of local Bayrites and Magnesites for the manufacture of chemicals.
The report also makes recommendations on how to improve the engineering and R&D
facilities in the country for the bigger role in the development of industry. PCSIR has
come in spot light and suggestions have been made to make its role effective. The need
of trained manpower for the chemical industry has been highlighted. It is recommended
to create a coordination body between chemical industry and R&D organization for the
development of this sector.
Name of the Report:-
Report of the Working Group on Industrial Development Authors:-
The Working Group on the Industrial Development for the 9th Five Year Plan (1998-2003).
Date of Completion:-
August, 1997 Objectives & Scope:-
The report deals with the problems, policies, foreign investment
and environment issues of all industries in Pakistan and suggests plans for 1998-
2003.
Synopsis:-
The report was prepared by the Working Group for the Planning
Commission. It reviews policy matters and proposes strategy for the
period 1998-2003.
Appendix-M of the report deals with the Chemical Industry and it
focuses on the petrochemical sector. It includes microeconomic policy
recommendations and investment possibilities in the petrochemical
industry.
Name of the Report:-
Development of Non-traditional Industrial Sector paper on Chemicals Authors:-
The sub-committee on chemicals by Board of Investment, Islamabad,
comprising of the following:
Mr. M. Idrees, Sitara Chemicals, Mr. Zafar Ahmad Khan, Engro Chemical, Mr. Ijaz Akbar, Islamabad.
Date of Completion:-
25 June, 1998
Objectives & Scope:-
The sub-committee was to prepare recommendations for the
development of the non-traditional industrial sector (chemicals). To focus on
macro issues which are limiting the development of chemical / petrochemical
industry in Pakistan.
Synopsis:-
Three members of the sub-committee prepared separate papers on the above
subject and they were compiled together to make a 90 page report. There is not much
data in the report and all what is available is mostly for the year 1994-95.
Mr. Muhammad Idrees, Chief Executive of Sitara Chemicals, is a
prominent and successful industrialist. He discussed the technical and
commercial problems of the chemical industry. After analyzing the
import dependence of this sector, he suggested various actions
necessary to revive the chemical industry. He stressed to implement the
recommendations by the “Special Secretaries Committee” and reduce
the tariff on plant and machinery to 3-7%. He highlighted the role of
R&D organizations and suggested actions to re-enforce their role for the
industry. He discussed the problems faced by the basic chemicals, dyes
& petrochemicals sector.
The capacities and outputs of Fertilizers, Basic Chemicals (Soda Ash,
Caustic Soda, Sulphuric Acid), Petro-chemicals and Synthetic Fibres were
discussed along with the future demand. Finally, he suggested the
following projects to promote the chemical industry.
a) Naphtha cracker based on imported naphtha. b) Production of acetylene, PVC, methanol from the natural gas.
c) Production of industrial alcohol, acetic acid, citric acid, ethylene, etc
from molasses.
d) Petrochemicals from gas condensate.
e) Chlorine based chemicals like PVC, Calcium hypochlorite, Zinc chloride, Tin Tetrachloride, Ferric chloride, Calcium chloride, Bleaching earth, etc.
The 2nd paper in the report is by Mr. Zafar Ahmad Khan, President &
Chief Executive of Engro Chemical, Karachi. He discussed the prevailing
status of the chemical industry at macro level. Availability of major raw
materials like natural gas, ethane, molasses, crude oil and rock salt has
been highlighted with a view to develop downstream chemical industry.
He has highlighted the major bottlenecks to the growth and has
suggested steps for the development of the chemical industry.
3rd paper in the report is by Mr. Ijaz Akbar, a chartered accountant by
profession. He has analyzed the economics of various options of raw
material for the chemical/petrochemical industry. He concluded that
ethane is the cheapest raw material for the production of petrochemicals
and the he thinks that ethane is abundantly available in natural
gas/associated gases. Based on the above assumptions, he proposed a
project to manufacture polyethylene from the ethane gas cracking. His
observations on the availability of ethane for a polyethylene project were
not correct.
Name of the Report:-
Industrial Efficiency Improvement and Development Strategy Study - Chemical sub-sector (Industrial Chemicals)
Authors:-
• Investment Advisory Cell of Pakistan, Karachi • United Consultants Ltd., Lahore • IMG Consultants Pty. Ltd., Sydney, Australia
Date of Completion:-
August, 1998 Objectives & Scope:-
The objective of this series of 23 reports is to formulate a strategy,
incorporating a consistent set of policies, which will enable rapid and efficient
industrial development. The series covers engineering, chemical and textile
sectors. The report under review is volume-12 on Industrial Chemicals.
Synopsis:-
This series of reports was prepared for the Planning Division and it was
funded by the World Bank. The volume-12 deals with Industrial
Chemicals divided into the following product classes:
• Basic Industrial Chemicals
• Salts and Intermediates
• Specialty Chemicals and Dyes
• Industrial Gases
• Pesticides
• Synthetic Resins
The report presents data on production, employment, input/output
values for above chemical groups for 1985/86.
Chapter-3 deals with production capacities, prices, raw materials,
processes of manufacturing and backward & forward linkage for each
chemical group mentioned above.
Chapter-4 discusses the manufacturing processes being applied in the
country. The salient features of each process have been mentioned and
recommendations on technological requirement have been made. Some
common characteristics of the available technologies have been
discussed to highlight the development in process control, material
handling, environment, research & development, quality control,
productivity, etc.
Chapter-5 discusses the role of government policies in development of
various chemical sectors for achieving value addition and cost efficiency.
All this analysis is based on 1985/86 data.
Chapter-6 evaluates the 1985-86 situations in respect of structure and
technology. It reviews each chemical industry and recommends strategy
for future planning.
Name of the Report:-
Report of the Task Force on Industrial Investment Authors:-
The Task Force organized by the Ministry of Industries & Mineral Development, Punjab. It comprised of eleven eminent industrialists, traders, bankers, etc.
Date of Completion:-
January, 2002 Objectives & Scope:-
To study the factors impeding industrial investment in Punjab and
recommend ways & means to attract investment.
Synopsis:-
The report discusses impediments to industry in detail. Also the factors
adversely affecting full utilization of installed capacity have been
covered. The report enlists proposals to attract investment in Pakistan
especially from the overseas Pakistanis.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 221
A.T.S. Synthetic (Pvt.) Ltd. Kacha Road, Khana Nau, Lahore Tel : (92 – 042) 5270057-5271436-38 Fax :(92- 042) 5271439 Telex: 44202 ATS PK. Cable : “ATSINT”
M/s ATS Synthetic (Pvt) Ltd. was registered on 17/11/1993 as a Private Limited Company under the company ordinance 1984. It started its commercial production in the year 1996. The unit is engaged in the manufacture of different types of Artificial Leather, viz PVC Coated, PU Coated, PVC / PU Coated, PVC Sheets, PVC Flooring and DOP.
The raw materials used in the manufacturing line are PVC Resin, Polyurethane, Release Paper, DMF, Arbocel, DOP, PV/PC Fabric of different grades and colours, 2-Ehtyle Hexanol, Phthalic Anhydride & various types of Pigments / colours etc.
The total investment made on the project stand at Rs.776.917 millions, out of which Rs.200 millions is self investment while Rs.576.917 millions have been invested after borrowing from different banks.
The actual production of different items along with the installed capacity is given as under: -
Description Installed Capacity/Year
Artificial Leather
5.4 million mtrs.
PVC Sheet
1092 M. Tons
DOP
14040 M. Tons
PVC Flooring
1.2 million mtrs.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 222
Type of Industry/ Service : Manufacturing and distribution of pesticides /
insecticides / fungicides products all over Pakistan
Year of Establishment : 1992
Plant Process Activity : Formulation Existing Production Capacity: - (a) Installed capacity: 6.4 Mill. Ltr/Kg (b) Actual Capacity (Y-2001): 2.4 Miln. Ltr/Kg
(c) Annual turn over (Y - 2001) (major products): Rs. 969.11 million. List of Products AFUGAN 30 EC PREVICUR 607 SL ALPHA CYPERMETHRIN PLANOFIX ARELON 50 DISP. PANTHER ALIETE PIX BUCTRIL M PUMA CYPERMETHRIN 10 EC REGENT 50 SC BASAMID RONSTAR 12 EC DECIS D SCOUT X-TRA DECIS 2.5 EC SHERPA 5 EC DECTRAN 328 EC SUNSTAR15 WG DERSAL 500 EC SEVIN 85 SP DITHANE SYSTOATE 40 EC DELTAPHOS THIODAN 35EC DROPP ULTRA THIODAN 25 ULV HOSTATHION 40 EC TOLKAN 50 WP IPIFLOUR 40 EC TEMIK 15 G KUMULUS-DF THIOVIT 80 WP LARVIN 80 DF OCTAVE WP METHAMIDOPHOS MITAC/OVASYN 20 EC
Aventis CropScience Pakistan (Pvt.) LTD. Plot # 23, Sector # 22, Korangi Industrial Area, Karachi-74900 Tele: - 92-021-5060721-23, 5055041-42, Fax:- 92-021-5060638 e-mail: - [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 223
Product: :
Phenolic Resin
Capacity: :
900 M.T per anum
Raw Materials: :
Phenol Paraformaldehyde Oxalic Acid Formaldehyde
P R O C E SS: Phenolic Resin is produced with the reaction of Phenol & Formaldehyde. It is
an exothermic reaction, which is stimulated by adding catalyst i.e. Oxalic Acid. It is
manufactured in a reaction vessel (Kettle) commonly used for producing various
resins. The finished product is in crystalline form packed in PP Bags each of 25 Kgs.
Azmat Polymers (Pvt.) Ltd. 185/1 Industrial Estate, Gadoon Amazai, Swabi, Tel:-(92-0938) 70368, Fax:-(92-0938) 70468
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 224
BASF Pakistan (Private) Limited 46-A, Block – 6, P.E.C.H.S., Karachi – Pakistan. tele:- 021-4549171, Fax:- 021-4547815 e-mail:- [email protected]
BASF is a transnational company with a German heritage that welcomes cultural diversity. BASF in Pakistan continues to reinforce its position as a major player in the chemical industry of the country by investing in infrastructure developments and state-of-the-art technology. Following the introduction of the SAP based COSMOS software it is now possible to keep track of BASF's business throughout Asia-Pacific. The software provides a standard for all business transactions and processes, ranging from incoming orders to payment collection.
BASF Pakistan is proud to be a part of this system, which serves 53 BASF companies in 14 countries. The Factory of BASF Pakistan (Pvt.) Ltd. conforms to BASF's uniform global safety policy based on modern technology, optimum organizational structures, a high level of training and a strong sense of responsibility among employees.
The three Application Laboratories at the factory and an additional one in Sialkot provide support to our customers. BASF in Pakistan exemplifies the spirit of innovation and high quality products that benefit BASF customers worldwide.
There are 127 employees working as a team in BASF Pakistan. As a local manufacturer, it has a sale of over 100 products which include a wide range of Textile and Leather pigments and auxiliaries as mentioned below:
• Leather Bating Agents, Wetting Agents, Resin Tanning Agents, Fat Liquors, Dyes, Pigments, Binders & Finishing Auxiliaries
• Textile Sizing Agents, Pre-Treatment Auxiliaries, Dyeing, Printing & Finishing Auxiliaries, Pigments for Printing
• Unsaturated Polyester Resin & Gel Coat.
• Total Plant Capacity : 15,000 tons • Capacity Utilization : 80-85% • Production System : Batch process • Production Process : polyimerization, standardization
sulphitation, powder mixing, wet milling
Main Production Group:-
1. Dispersions 2. Auxiliaries 3. Palatal 4. Pigment 5. Fat liquors 6. Powder
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 225
Buxly is a wholly Pakistani company and its name is derived from the middle name of its late Founder Mr. Rahim Bux Khan Buxly’s first factory was established in 1948 in the Sindh Industrial Trading Estate, Karachi. The Company has since seen many ups and downs, in spite of which it is today the largest Pakistani paint manufacturer, with well established brands recognized nationwide as high quality products. Besides the widely distributed decorative/architectural paints, we manufacture a manifest variety of high performance coatings based on Epoxies, Polyurethanes, Silicones and for almost everything else in between. For over 34 colorful years, Buxly continues to be a technology leader in the Pakistani paint industry on account of which the company is the recipient of several international Quality Awards. With the recommencement of exports of sophisticated high-end coating, its commitment to consistent quality, innovation and improvement is further emphasized. As mentioned above Buxly manufactures the total range of decorative/architectural paints, which includes enamels, emulsions, exterior and foundation coating, wood lacquers, anti-corrosive and paints for swimming pools, sports area’s etc. In the non-conventional field, the company manufactures in following items:- Chlorinated Rubber Based Coatings. Epoxies Heating Resisting Paints Polyurethanes Pretreatment Solutions Marine Coatings Aerospace Coatings Miscellaneous Industrial and specification paints.
The production capacity is in excess of two million liters per annum.
Buxly Paints limited X/3, Manghopir Road, S.I.T.E., P.O. Box 3630, Karachi-75700 Tel: - (92-021) 2577702-5 Fax:- (92-021) 2560468 e-mail:- [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 226
The Berger name has been associated with paint manufacturing for almost two centuries. The BERGER group has worldwide affiliations, with companies operating in 46 countries. In Pakistan, the history of BERGER is as old as the history of organized paint manufacturing. The first Company to introduce premium quality paints in the country, BERGER started its operations in 1950. Initially, the paints were imported from the United Kingdom. It was in "1955 that a local manufacturing facility was established at Karachi. Ever since, the Company has met the growing demand through regular extensions in its product range, which has contributed to attract a healthy market share and has maintained a high reputation for consistent quality. BERGER PAINTS PAKISTAN became a public limited Company in 1974, when 49.8% of the shares were acquired by Pakistani investors with the remaining 50.2% being held by the U.K. parent Company, Jenson & Nicholson Limited. Soon afterwards, Jenson & Nicholson Limited was taken over by Hoechst, one of the world's major manufacturers of chemicals and allied products. Slotrapid Limited, a U.K. based Company with diversified business interests acquired the management of BERGER PAINTS PAKISTAN in 1991. Also in 1993, BERGER entered into a technical collaboration agreement with Nippon Paint Company of Japan. Nippon is acknowledged as one of the most sophisticated paint manufacturers in the world and ranks among the leaders of the paint industry. This collaboration has enabled BERGER to develop automotive and industrial paints conforming to exacting international standards. BERGER paints has also built up technical collaboration for decorative paints with BERGER Crowne of Akzo Nobel UK. With its Head Office at Karachi, BERGER PAINTS PAKISTAN has regional offices at Lahore and Islamabad as well as a wide network of distributors/ dealers and sales personnel at all major urban centres of the country.
BERGER PAINTS PAKISTAN LTD. D-31, South Avenue, S.I.T.E., Karachi – 75700 Tel:- (92-021) 2573711-22, UAN : 111-237-437 Fax:- (92-021) 2561069, 2562090 e-mail: - [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 227
List of Major Raw Materials Used
Description H.S. Code Aprox. Annual Requirement Qty/Tons
Acrylates 2915.3200 40 Aluminum Pastes 3212.9090 5 Chorinated Rubber 3905.9000 0.6 Chrome Yellows 3206.2010 2 Defomers 3824.9099 6 Dispersing Agents 3402.1310 3402.1910 15
Driers 3211.0000 1 Glycols 2905.3100 55 Inorganic Coloring Matters 3206.4900 34
3206.5000
Lithophone 3206.4210 3 Nitrocellulose 3912.2000 36 Pentaerthritol 2906.4200 72 Phthalic Anhydride 2917.3500 336 Plasticizers 2917.3200 7 Solvents 2905.1300 384
Synthetic Resins 3907.5000 22
3909.4090 Thickners 3912.3900 0.6 Titinium Di Oxide 3206.1100 600 Toluene 2902.3000 204 VAM 2915.3200 276 Water Base Pastes 3204.1700 528 Xylole 2707.3000 528 Tin Plates 7210.1200 1200
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 228
Production Details
Description Estimated Annual Production Liters (000)
VIP EMULSION 550 ROBB. ENAMEL 780 S. P. D. 1,750 WEATHER COAT 320 A/R SUPER MATT ENL. 170 T. P. S. 200 EAZY CLEAN 80 ECONOMY EMULSION 40 DUROCEM 75 TIMBER COAT 230 WATER BASED PUTTY 220 OTHER DECORATIVE 230 TOTAL DECORATIVE 4,645
INDUSTRIAL / AUTO/HONDA 1,750 VITON (CAR PAINT 360 GOVERNMENT / MARINE 450 POWDER COATING 160 T.P. CATAPHS R/MARKING 100
S. TOTAL 2,820
GRAND TOTAL 7,465
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 229
Clariant Pakistan Limited (CPL) is a 75% owned subsidiary of Clariant International Limited, Muttenz, Switzerland. In Switzerland, Clariant was formed as a bifurcation of Sandoz' Chemicals Division from the rest of its business, mainly pharmaceuticals, on 1st July 1995. In 1996 the Chemicals Division of the former Sandoz Pakistan Limited was carved out from the rest of Sandoz Pakistan Limited to form Clariant Pakistan Limited. As a result of the global acquisition of Hoechst AG, Germany's Specialty Chemicals Business by Clariant, Switzerland in 1997, CPL acquired the entire assets (excluding land) and liabilities of the Specialty Chemicals Business of former Hoechst Pakistan Limited. CPL is a public limited company quoted at Karachi Stock Exchange. It has the following manufacturing sites:- Jamshoro, Sindh Textile and Leather Chemicals, Dyes / Pigments,
Emulsions for textiles, leather, paints, etc. and glue for the wood working industry.
Korangi, Karachi Masterbatches (Plastic colouring material). Thokar Niaz Beg, Textile and Leather dyes. Lahore Product Range and Productions Capacities: Chemicals and auxiliaries for textile, leather etc. : 12,000 tons p.a Dyestuffs for textiles and leather : 3,000 tons p.a Emulsions for textiles, leather paints etc including Glues, for wood working industry : 17,000 tons p.a Masterbatches : 1,800 tons p.a Raw Materials: A large variety of raw materials are used in different combination for various products that originates from various countries.
CLARIANT PAKISTAN LIMITED 1-A/1, Sector 20, Korangi Industrial Area, Karachi- 74900 Tel :- (92-021) 5046710-19 Fax:- (92-021) 5046712, 5032337
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 230
Chemi Group laid the foundation of Chemidyestuffs Industries (Pvt) Limited in 1987 as its own synthesis unit. The technology base of manufacturing the dyestuffs was acquired from Thai Ambica Chemicals Co. Ltd, Thailand and the technical know how assistance supplemented by its associates from Crompton and Knowels, USA. Over the years, CDIL has firmly consolidated its strength of manufacturing quality dyestuffs since 1987. The graph of enhancing the standard of quality control and expanding the parameters of products, research, design and development, is on constant rise, which is evident from its ever-expanding clientele base locally and internationally. A wide range of Chemifix Reactive, Chemicet & Chemicron Disperse and Direct dyestuffs and Pigment Preparation for textile and a series of shades in Acid and direct dyestuffs for leather industries are designed, processed and finished at CDIL's Plant at Hub Chowki, Baluchistan. This ability of manufacturing five complete ranges of diversified products, places CDIL at an exceptional level. It has also managed to promote its products range to almost all the leading textile units and has had received customers' appreciation for consistency in quality of international standards. It has a distinct honor of exporting its products to a couple of Asian, Far East and Middle Eastern countries during last two years and has been playing the role of promoting exports of Pakistani Products and creating opportunities for foreign exchange earnings. CDIL's recent ISO 9001 certification has ensured an absolute consistency in all the quality control matters, and has made its production stage more efficient for utilizing full scale cost saving advantages. The hallmark of CDIL’s products range is the price structure where special attention is being paid to pass on maximum economical advantage to the consumers. That is why the gap in the prices being charged by the multinational suppliers versus CDIL comes to an unbelievable comparison level, where you get an instant feeling of being overcharged for the products, which are readily available at half the prices and meet all the international quality standards and specifications. One such good reason of adhering t the international specifications is CDIL’s highly environment conscious approach, which, apart from its implementation at every production level, also filters down to an ambiance of its priority to all the environment related issues. The parameters of designing and developing new
CHEMI-DYESTUFFS IND. (PVT.) LTD. D-4, South Avenue S.I.T.E, Karachi-75700, Tel:-(92-021) 2573940-2571403, Fax:- (92-021) 2562613 & (92-202) 32293 e-mail [email protected] web site:- www.chemigroup.com
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 231
Products are well within the focus of user-friendly production and cost efficiency techniques. Present Production Capacity: At present our annual production capacity to produce dyestuffs, OBA & Pigment Emulsions is tabulated below: - Dyestuffs H.S. Code Production capacity (MT.Per Year) Disperse Dyes Acid Dyes Direct Dyes Reactive Dyes Optical Brighteners
3204.1100 3204.1200 3204.1400 3204.1600 3204.2000
700 Metric Tons
Pigment Emulsions 3204.1700 300 Metric Tons Expansion Program: To meet the future challenges, it has been planned to expand the existing production capacity and Plant expansion is underway. By the mid of 2003, the company we will be able to produce further dyestuff as fallows: Dyestuffs H.S. Code Production Capacity
(MT. Per Year) Disperse Dyes Acid Dyes Direct Dyes Reactive Dyes Optical Brighteners
3204.1100 3204.1200 3204.1400 3204.1600 3204.2000
700 Metric Tons
Pigment Emulsions 3204.1700 300 Metric Tons After expansion the total per annum production capacity would be 2400 MT.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 232
Champion Paint Industries (Pvt.) Limited Hanjarwal, Multan Road, Lahore, Tel:-(92-042) 5420260-61, Fax:- (92-042) 5417878 RAW MATERIAL Resins, Pigments, Dry Colours, Chemicals (Solvents & Additive etc.) PRODUCTS a) Car repair N/C Paints. b) Decorative paints such as emulsion paint of different qualities and synthetic
enamel. c) Industrial paints - such as Stoving paints, Sport Goods lacquers and Chemical
resistant paints etc. CAPACITY a) Installed Capacity : 4,25,000 Liters b) Annual production for the year 2000-2001 : 3,74,720.36 Liters
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 233
Established: 1949
Line Of Products: Washing & Laundry Soap, Toilet Soap, Glycerine &
Cooking Oil.
Famous Brands: ‘101’ (Translucent) ‘101’Special, ‘101’ (Family Lemon) Feroza, Maya (Brown)’101’ (Noodles) for Washing machine, Mona, Roop, Rainbow, Feroza Special (Toilet Soap).
Machinery Details: 1. Soap Plant G.Mazzoni (Italy) : 18 Tons per day 2. Soap Plant Binnachi (Italy) : 54 Tons per day 3. Z.K. Plant (Pakistan) : 18 Tons per day 4. Cooking Oil Z.K. (Pakistan) : 30 Tons per day 5. Glycerine Crude & Refined Plant.
Quality Control: It has a well-equipped laboratory where qualified chemists are always busy in testing from raw materials to finished products to control the quality parameters to ensure the standard of products.
Turnover: In US Dollars over 60 million per annum. In Pakistan Rupees over 315 Million per annum.
History: Darbar Soap Works(Pvt) Limited is a family company. It was established by Late Haji Abdul Karim in 1949. Initially semi –boiled soap was produced which was very popular in Sindh & Punjab Provinces. In 1963, first Italian Modern Automatic Plant was installed by the Grace of God. The company flourished and progressed continuously. At present, it has three finishing units capable of manufacturing every kind of soap. The Company is sharing major portion of market especially in Karachi, which are almost 45% of total sale of soaps.
DARBAR SOAP WORKS (PVT.) LTD. E-52, S.I.T.E., Karachi-75700 Tel:- (92-021) 2573612-4, Fax: (92-021) 2563828-2560900 e-mail:- [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 234
DELTA Industries (Pvt.) Limited was incorporated as a private limited
company in 1981, primarily for the manufacturing of Synthetic Resins and
Allied Chemicals. It is an ISO certified company and comprises of the
following four main production units which are adequately equipped with
R&D facilities and are located at 14-1/2 KM. Lahore-Sheikhupura Road:-
i. Polymer Section ii. Optical Brighteners/ Textile Chemicals iii. Fortified Rosin iv. PVA & Acrylic based Emulsions etc.
Products
o Surface Coating Resins o Unsaturated Polyester Resin o Optical Brighteners (Used in the Textile, Paper & Detergent Industries) o Textile Auxiliaries o Alpha Amylase ( For Textile Process Industry) o Neutral and Acid Enzymes (For Garment Wash Industry) o PVA & Acrylic based Chemicals(Used in the Paint and Textile Industries)
DELTA INDUSTRIES (PVT.) LIMITEDHead office:- Akhawan House, 38-Shahrah-e-Sir, S.M.S. Agha Khan III, (Davis Road) Lahore-54000 Tel:- (042) 6372042-5, 6369933 Fax:-(042) 6369434 e-mail:[email protected] Website:http//www/deltaindsutry.com Factory Office: 14-1/2 Km. Lahore-Sheikhupura Road, Lahore Tel: 042-7970229, 7970630-31
Prospects of Chemical Industry in Pakistan
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Production of Alkyd
Rated Capacity Current Production MT /Month 600 580
Production of Emulsion
Production of Polyester
Rated Capacity Current Production MT /Month 200 155
Production of Rosin
Production of Textile
Rated Capacity Current Production MT /Month 300 190
Rated Capacity Current Production MT /Month 190 160
Rated Capacity Current Production MT /Month 100 70
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 236
Alfred Noble founded Dyno A.S.A. of Norway in 1865. It is now a multinational with 100 wholly or partly owned companies in over 40 countries. Core business of Dyno Industries is commercial explosive, specially chemicals, and micro particles and plastics products. Almost 90% of Dyno turnover is generated outside of Norway. Dyno currently employees some 8,500 people.
Dyno Pakistan Limited was formed in early 1982 as a joint venture between
Habib Group of companies and Dyno industries A.S.A of Norway. It is a public limited company with the two initial founders being the major shareholders. Due to the changes in (Foreign Chemical Division) of the foreign partner, the name Dyno has been changed to Dynea as its new name has been incorporated under the Companies Ordinance effective from 30"'. July 2001.
Dynea Pakistan Limited produces quality urea resin for use in industries like particleboard, chipboard, veneerboard and melamine resin for lamination industry. Together with its wholly owned subsidiary Visionite (Pvt) Limited, it is also the largest producer of moulding compound used for manufacturing dinner sets and electrical accessories. Joint Venture The joint venture brought together the technical know-how of Dyno Industries and the organizational and marketing ability, knowledge of local conditions and the reputation of the House of Habib. The complete project was financed through NORAD loan and equity contribution. A housing project was also set up through a grant from NORAD to provide comfortable housing for workers and amenities for the whole area. Technology Dynea Pakistan has access to and is using the latest technology in the field of amino resins available with Dynea Industries, who are recognized as leader in this field. Dynea's moulding compound technology was developed by Buss A.G. of Switzerland and is the latest in this field.
Dynea Pakistan Limited (formerly Dyno Pakistan Ltd.) 2nd floor, Al-Hannan Centre, 55, Dar-ul-Aman Society, Block 7/8, Sharea Faisal, Karachi-75350 Tel: - (92-021) 4520132-5, Fax:- (92-021) 557167 e-mail: - [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 237
Purpose of this industry Manufacturing of formaldehyde and aminoplast resins and of moulding compound were both pioneering ventures introduced for the first time in Pakistan. Now only a small quantity of moulding compound is imported into the country and there are no imports of formaldehyde or liquid resins. Tableware industry has grown 10 times because of the availability of locally manufactured raw material. These industries have also helped save huge foreign exchange for the country. Both Dynea as a corporation and Dynea Pakistan Limited as a company have singled out Health, Safety and Environment as being a high priority issue. Dynea Pakistan is actively working to: • Protect employees and local surroundings from environment damages. • Manage its resources and assume its share of the environmental
responsibility in relation to customer as well as supplier. • Has vast experience of skilled & qualified staff & commitment to keep its
customer's trust & respect by setting high standards in all areas of supply & services.
Sources of Supplies The raw material used by Dynea for its manufacturing purpose is local purchased as well as imported. The raw material generally comprise of the following:
1. Methanol 2. Urea 3. Melamine 4. Cellulose 5. Hexamine 6. Adeka PPS 7. Ammonium Sulfamate 8. Others
Product Catalytic oxidation and dehydrogenation of Methanol, produce formaldehyde. It is mixed with water and air and then vaporizes the raw materials. The catalyst bed in the reactor consists of silver, which is regenerated and re-used. The formaldehyde product is drawn from the 1st circulation of the absorber.
The main lines of product carried out by Dynea comprises of the following:
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a. Formaldehyde - in various concentrations b. Urea in various concentrations c. Melamine - in various concentrations d. Moulding Compound e. Special Moulding Compound
UF Resin It is based upon the reaction of urea and formaldehyde solution. Urea and Formaldehyde is charged into the reactor and heated. After reaching the desired viscosity, the pH is adjusted and cooled before transferring it to the storage tanks.
Amino Plast Moulding Compound
The basic concept of the Moulding Compound process is to impregnate the cellulose or wood flour filler with resin and to condense the resin and dry the material to provide a moulding compound, and granulation completes the moulding material process.
Rated Capacity and Production
Resin Division Rated Capacity M.Tons
Urea/Melamine Formaldehyde : 34,000
Formaldehyde : 39,000
Amino Plast Division Aminoplast Compound : 2,000
Special Aminoplast Compound : 2,000
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 239
Engro Asahi Polymer and Chemicals Limited is the only manufacturer of suspension grade Polyvinyl Chloride (PVC) (PCT code 3904. 1000). It was set up as a joint venture among Engro Chemical Pakistan Limited, Asahi Glass Company Limited and Mitsubishi Corporation Limited. The company has its manufacturing facility at Port Qasim, Karachi with an installed capacity of 100,000 Metric Tons per annum of PVC. The plant is capable of producing 5 grades of PVC resin; AU 58, AU 60, AU72, AU67R and AU 67S. PVC resin is marketed under the brand name "SABZ." The project uses state of the art technology to ensure safe and efficient operations consistent with the highest environmental standards of the World Bank and the Governments of Pakistan and Sindh. The company is fully ISO 9001:2000 and ISO 14000 compliant. In addition to selling PVC locally, the company also exports the resin and in February 2001, the company was awarded the Export Trophy for achieving exports in nontraditional items. The main raw material for the product is VCM. Currently all VCM requirements are being met through imports. In addition certain catalysts and chemicals are also used, some of which are imported. In the year 2000, the company produced 65,100 MT and sold 36,577 MT in the domestic market, while 25,513 MT were exported. In 2001, production was 68,600 MT, domestic sales were 58,192 MT and exports 12,409 MT. The PVC industry in Pakistan is in its early stages of development. Previously all PVC requirements were being met solely through imports. PVC is a versatile plastic with a wide range of applications. PVC is used in doors and windows, pipes and fittings, profiles, food packaging, furniture, electronics, and geomembrane applications. Being the pioneer of the PVC industry in the country, the company has undertaken an intensive market development program, which is expected to considerably boost the local demand for PVC.
ENGRO ASAHI POLYMER & CHEMICALS LTD.First floor, Bahria Complex 1, 24 M.T. Khan Road, Karachi –74000, Tel: PABX: (92-021) 5610610,5610617, 5610743,5610753 UAN : 111-411-411 Fax:-(92-021) 5611690
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 240
The main activity of Gulf Chemicals (Pvt.) Ltd., is the manufacturing of
tannery chemicals. Its specialties for leather industry include a number of finishing
products and Wet End Products.
Finishing Products: • Gulf Bind : 001, 11, 38, CT,FT,GE, MO, PO, • Gulf Fix : Black SPL , CL • Gulf Ground : 3,5,25,72,BES,CBC,CMM,CMP,OL,STK • Gulf Oil : 44,CTL,GMS, GMW • Gulf PU : 14,18,75,81,82,84,85,86,87, 99K,189N,M7 • Gulf Resin : 12,68,91 • Gulf Top : BT, PGL, PRS • Gulf Touch : 03,24,368,40,45. • Gulf Wax : 50,BR,DIS,E,MAT,NP,SA Wet end Products • Gulf Ground : BES • Gulf Oil : 012,44,CTL,LCN • Gulf Tan : 20/E,70,BTN,SM, XRL • Gulf Wet : AW,FLP,FLR,GLC,K, UFB
Gulf Chemicals (Pvt.) Limited Plot No. C1-D5, Sector 16, Korangi Industrial Area, Karachi-74900 Tel : - (92-021) 5054301-2, 5062534 Fax: - (92-021) 5067193 E-mail : [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 241
Conceived in 1979 and “ on stream” in 1983, HAL is a world pioneer in Production of rice based starch sugars and sweeteners, Associated with the Habib Group of Industries and incorporated in Pakistan, the company is listed on the Karachi Stock Exchange as well as the Lahore Stock Exchange. The Company has consistently expanded its product range which presently includes a wide array of glucose syrups, high maltose, high maltose syrup, dextrose monohydrate, sorbitol high fructose 42, as well as a range of rice protein concentrates for the human food and specialty feeds markets. Subsidiaries of HAL • Habib sorbitol (Pvt) Ltd. • Habib Microfine (Pvt.) Ltd. Products • Starch sugars and Sweeteners Rice Syrups (Glucose) • High Maltose Rice syrup • High Fructose 42 Rice Syrup (HFRS-42) • Rice Sorbitol 70% solution • Dextrose Monohydrate (95 D.E.Rice Syrup Solids) • Specialty Rice Syrups • Rice Protein Concentrâtes All rice derived products manufactured by Habib Arkady Ltd. are KOSHER certified by Orthodox Union
Habib Arkady Limited Al-Rehman Building, I.I Chundrigar Road, Karachi-74200 Tel:- (92-021)-2628181, 2629991 Fax:-(92-021)-2637965 e-mail:[email protected] & [email protected]
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 242
Ittehad Chemicals Limited is the pioneer and one of the leading manufacturers of basic inorganic chemicals in Pakistan. The present line of products of ICL includes Caustic Soda (Solid, Liquid and Flakes) Liquid Chlorine, Hydrochloric Acid, Sodium Hypochlorite (Liquid Bleach), Zinc Sulphate Mono, Bleaching Earth, Sulphuric Acid and Lime; the later two are products for internal consumption only.
The Factory was commissioned in 1964 under a private sector organization with an installed capacity of 60 MT of Caustic Soda and 54 MT/day of Chlorine. The technical know how of the plant was provided by Messrs. Oronzio DeNora of Italy. The first phase of expansion was carried out in 1969 which saw its capacity enhanced to 90 MT/day of Caustic and 81 MT/day of Chlorine.
The unit, until then know as United Chemicals, was nationalized along with other Industries of Pakistan in 1972. It was renamed as Ittehad Chemicals by the Government and put under the control of state owned Federal Chemical and Ceramics Corporation Limited (FCCCL). The production capacity of Ittehad Chemicals Limited was further increased to 150 MT/day of Caustic and 135 MT/day of Chlorine in 1983.
Ittehad Chemicals was ultimately privatized in July 1995 and its Management was taken over by a Karachi based Entrepreneur Group, the CHEMI GROUP OF INDUSTRIES. The privatization process of the industry undertaken by the Govt. served as a saline drip injected into a sick and feeble soul, which gradually but surely started showing signs of healthy progressive recovery and improvement.
The next phase of expansion and modernization was undertaken soon after privatization, wherein the production capacity of Caustic Soda was enhanced to 190 MT/day and that of Chlorine to 171 MT/day. Not only that, greater emphasis was laid on optimization and effective utilization of all available resources which included raw material consumption, energy consumption, man power and minimization of wastage's.
The company is aware of its responsibilities as a large manufacturing industry, wherein, it is required to take care of/look after the environment side of production as well. Keeping this factor in view we have chalked out plans for the
ITTEHAD CHEMICALS LTD. 39-Empress Road, P.O. Box 1414, Lahore-54000, PABX: (92-042) 6306586-88 & 6306482, Fax (92-042) 6365697 e-mail: [email protected]
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effective utilization of the Chlorine to be generated through our expansion program.
In order to keep pace with the changing scenario and advancement in management system, Ittehad Chemicals Ltd. acquired the International Standard Management System Certification ISO-9002 in March 2000. Not only that immediate working started on the revised version of the International Standard and within a record time of 8 months have achieved for ISO 9001:2000 Certification in March 2002.
Further to meet the ever-growing demand of Caustic Soda in the Country, the company undertook the expansion project for Caustic Soda based on the Environment Friendly Ion Exchange Membrane Technology. The construction / expansion work on the project is in full swing and hopefully would go into production before the end of the current financial year (2002-2003). The Expansion Project will enable us to enhance our production capacity by another 163 MT per day. This increase in production will help us to meet the maximum demand of Caustic Soda in the Country.
For this purpose an export oriented Calcium Chloride, Solidification / Flaking Plant with a production capacity of 40,000 MT per year is already in the advanced planning stage.
To further contribute towards a cleaner environment plans are underway for setting up a 40 MW Power Generation Unit at Ittehad Chemicals Limited.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 244
ICI PAKISTAN Limited ICI House- 5 West Wharf P.O 4731 , Karachi 74000 Tele: (92-021) 2313717-22, Fax: (92-021) 2311739 Telegram: KEMICORPKARACHI Telex: 20770 ICIPK, 215631 ICIPK Website: http://www.ici.com.pk
ICI in Pakistan, a leader in industrial chemicals and paints, manufactures and sells a diversified range of products. The Company's vision is to be the industry leader in creating value for customers, shareholders, suppliers and employees. A chemical company can be a major force in the development of a country. Through innovation and responsible application of its energies and skills, it can make a positive contribution to the industrialization, development and quality of life of the people it serves. ICI in Pakistan has played an active role in the Country's industrial development and progress, for well over half a century, and continues to do so, with investment in the future. ICI Pakistan Limited predecessors have been operating in the country well before independence. Its first manufacturing plant for Soda Ash in Khewra was established over fifty years ago. Since then, it has progressively moved to produce a diversified range of products including: • Polyester fibre • Decorative, refinish and industrial paints • Sodium bicarbonate • Agrochemicals • Specialty chemicals The Company also markets toll manufactured, pharmaceuticals and animal health products, in addition to a range of imported industrial chemicals and seeds. In June 1998 ICI Pakistan's latest investment in a USD 490 m plant to annually produce 400,000 tonnes of Pure Terephthalic Acid (PTA) was commissioned. Pure Terephthalic Acid (PTA) is a key raw material for the manufacture of polyester fibre, filament yarn, films and PET packaging. This was ICI Pakistan's largest single investment to-date. Among the immediate benefits of the PTA Plant has been the achievement of self-sufficiency in the primary raw material for the production of polyester staple fibre, with annual savings of about USD 100 million (at full capacity) through import substitution, and a considerable reinforcement of the polyester industry through backward integration in the
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product chain, which in turn helps strengthen the textile sector of the country, the mainstay of the export economy. In order to enable the PTA Business to pursue its strategy, it was demerged from ICI Pakistan in 2001, into a separate legal entity, Pakistan PTA Limited, quoted on the Karachi Stock Exchange. The shareholding structure of the company (as at 31 December 2001) is as follows:
Shareholder Percentage Shareholding
ICI Omicron BV (wholly owned subsidiary of ICI, plc)
75.81%
Institutions 11.05% Pakistani Public & Foreign Funds 13.14% ICI Pakistan Businesses Polyester Staple Fibre PSF is blended with cotton and other man-made fibers as viscose and acrylic to produce blended yarn.
In 1982, ICI pioneered PSF manufacturing in Pakistan using Batch Polymer technology for which capacity was gradually raised to 29.7 thousand tons per annum (ktpa). In 1997 ICI added a 63 ktpa CP Polymer plant and one 31.5 ktpa spinning & processing line, raising polymer capacity to 92.7 ktpa but fibre capacity to 59.3 ktpa. The existing fibre lines were to be fed from the new CP Polymer plant, while the Batch Polymer plant with a capacity of 29.7 ktpa was to be used to manufacture POY Chips for the filament yarn industry. At the end of 1997, the Batch Polymer plant was shutdown as the market for POY chips suffered from over capacity. This excess polymer capacity of the Batch Polymer plant will now be utilized to release extra polymer to be converted to fibre by the addition of a new spinning and processing line at a cost of over Rs 1.3 billion, undertaken through the formation of a specific purpose Modaraba, Fayzan Manufacturing Modaraba, which will run the plant and use the excess polymer from ICI's polymer plant to produce over 44 ktpa of Polyester Fibre under a toll manufacturing agreement. The main raw materials used in the manufacture of PSF are PTA and mono ethylene glycol (MEG). The former is provided through the Group Company, Pakistan PTA Limited, while MEG is imported from the region. The future outlook for PSF demand is optimistic, based on factors including: • a growing local population; • limited cotton acreage;
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• one of the lowest PSF per capita consumption rates compared to the South East Asian region as well as the world;
• increasingly higher cost of cotton and improving textile blend economics; • expanding export demand for higher value added textiles; • a large spinning industry comprising of over 8.23 million spindles; and Government incentives for blended textiles. Soda Ash The Soda Ash Plant is located in the northern part of Punjab at Khewra, District Jhelum. The initial work of setting up a soda ash plant at Khewra site dates back to 1929, however, commercial production began in 1944. The original capacity of the plant was 18,000 tonnes per annum that has increased to 200,000 tonnes per annum through a number of expansion projects. The plant is currently meeting about 80% of the Country's requirement for Soda Ash, and by using locally made equipment and raw materials, provides savings to the Nation's foreign exchange reserves. Most recently, the Soda Ash Business has further increased its production capacity to 225,000 tpa through Automation, Power Co Generation and Debottlenecking projects completed in 2002 at a cost of Rs 555 million. Soda Ash is an industrial raw material used in the manufacturing of Glass, Detergents, Caustic Soda, Soap, Paper, Textile, Water Softener, Petroleum, Washing and Laundry Soaps. The major raw materials used in the manufacturing of Soda Ash are salt, limestone and coke. Salt and limestone are locally available at Khewra, in abundance, whereas coke is procured from the Pakistan Steel Mills, Karachi. Other essential requirements are natural gas, Furnace oil, Ammonia and Water. The product range was diversified in 1995 with the commissioning of a 10,000 MT Refined Sodium Bicarbonate Plant. The basic raw materials for its manufacture are soda ash and carbon dioxide, both of which are available at the Khewra Works. The Soda Ash Business employs 550 permanent Staff and has 2500 people who work as Contractors and Suppliers. Most of the permanent employees are provided housing facilities on the Company's well-developed residential estates. Other facilities like the Winnington School, Alkali Sports Club, Winnington Club, hockey & football grounds, squash courts, 20 bed Winnington Hospital, with a full time Medical Superintendent and a Lady Medical Officer supported by visiting specialists and a well trained paramedical staff, are also availed by the employees.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 247
Paints ICI plc, ICI Pakistan's parent company, is one of the world's largest manufacturers of paints. With acquisitions in the Americas and Europe it produces and sells over a billion litres of paint annually. In 1965, ICI UK acquired a 50% interest in a paints company situated at Ferozepur Road, Lahore Pakistan and changed its name to Paintex Limited. In 1973 the new Company was converted into a Public Limited Company. The paints manufacturing capacity of the plant was upgraded and enhanced in 1981 and since then the Business has proceeded progressively to consolidate market share in the major segments of the decorative, automotive, industrial and refinish paints market. It has now become the undisputed leader in all the three segments. The Paints Business accounts for nearly 20% of ICI Pakistan's annual turnover and contributes nearly 24% of the Company's profit. The impressive growth recorded by the Paints Business through aggressive marketing and refined brand management is a success story where the vital ingredient has been consistently superior quality and focus on customer satisfaction. By offering technical and free colour advisory service, ICI has set a high value on being able to advise and assist the customer about his needs for specialised applications, and resolving problems of technical specifications for the use of paints under varying conditions. ICI Autocolor Business, a part of ICI Pakistan Paints, is a market leader in the manufacture of paints for cars and vehicles for their repair and refurbishment. Recently, the Company established a state-of-the-art Technical Training Centre for refinishes training, the first of its kind from a commercial enterprise in Pakistan. In 1998 the Paints business was awarded MRP (Manufacturing Resource Planning) II Class A for excellence in overall business operation. ICI Paints is the first in Pakistan and 23rd in the world to be awarded MRP II Class A. ICI Paints is also the first paint's business in Pakistan to receive ISO 9001 certification in all it's disciplines. The achievement of MRP II Class A accreditation and ISO 9001 certification is not only a reflection of commitment to excellence in service standards and customer satisfaction but also in the pursuit of being the world's best. Chemicals The ICI Pakistan Chemicals Business comprises of a unique and diversified portfolio encompassing Uniqema, Polyurethanes, and a Trading business that includes representation of ICI plc (UK) Businesses, such as Synetix as well as former ICI plc (UK) businesses such as Chlor Chemicals, Acrylics and Tioxide, supplemented by imports of complementary product lines from non-ICI companies in the USA, Europe and Far East.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 248
Uniqema The Uniqema Business at ICI Pakistan includes the manufacture and marketing of textile auxiliaries, adhesives and paint lattices, and the trading of personal care products to a wide range of industries. The Uniqema plant set up in Karachi in 1964 was primarily designed to manufacture a range of textile auxiliaries. Today, with a capacity of 6,500 tonnes it manufactures and formulates a range of over 40 products used in industrial processing that call for Specialty Chemical applications. Polyurethanes ICI Pakistan has its own Polyurethanes (PU) blending unit with an installed capacity of over 730 MT/annum. It produces rigid Polyol, which is one of the two components used in thermal insulation of appliances and panels for cold storages. The various industries that the Polyurethanes Business caters to are appliances, construction, footwear, transport and furniture. PU chemicals are also used in chemical plants and animal houses such as poultry sheds, etc. Apart from local blending, PU chemicals are also sold on direct indent and ex-stock basis for different applications. ICI Pakistan is the market leader in PU, with an overall share of about 70%. Trading The Business markets, through indent and ex stock sales, a diversified product range from specialized chemicals used for water treatment to basic commodity chemicals used in a variety of industries including fertilizer, cement, polyester, oil and gas, plastics and paints. These products originate from ICI plc (UK) Principals, subsidiaries and associated companies worldwide. Agrochemicals & Seeds Seeds The Seeds Business was initiated in 1991 and since then has attained a dominant position in the hybrid sunflower and fodder seed segments. The maize sector acceptance has been most encouraging and the Company has introduced a hybrid canola seed to further support the indigenisation of cooking oil supplies. Seeds are primarily being imported from Thailand and Australia, although the Business has also imported from New Zealand and the Netherlands in the past. The Business is also actively evaluating hybrid vegetable seeds in order to expand its product portfolio.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 249
Agrochemicals In 1991, ICI Pakistan set up a formulation plant at an approximate cost of Rs 40 million for blending and formulating agrochemical products. The main products from this plant were pesticides, weedicides and herbicides. After operating this plant for ten years, the Business took a strategic decision and in 2001, and the Agrochemicals Business was restructured in light of changed market conditions favouring generic products. Consequently, the main focus of the Business has shifted to the import and marketing of seeds. The Agrochemicals Business will continue its operations, albeit on a lower scale. The Business will now selectively identify market opportunities to continue selling in this market. Pharmaceuticals & Animal Health Pharmaceuticals ICI Pakistan's Pharmaceuticals Business markets prescription drugs with a strong portfolio of innovative products from Astra Zeneca Pharmaceuticals UK, Schering Plough Medical USA and In-Situ Technologies USA. A focused portfolio of products is at present maintained, with strong representation in the cardiovascular, oncology and anaesthetic segments. ICI Pharmaceuticals' strength is in cardiovascular drugs with Tenormin, a product used for controlling hypertension and the market leader in its therapeutic segment. In addition, Inderal, Zestril and Etizem complete a comprehensive portfolio of cardiovascular drugs ICI Pharmaceuticals also specialises in drugs for the treatment of cancer. Presently, the product portfolio includes Nolvadex, used for the treatment of breast cancer, and Zoladex, an advanced technology drug used in the treatment of prostrate cancer. Future expansion of this range will result in new therapies being introduced to further broaden the availability of cancer treatments in Pakistan. The Business has recently introduced cardiac stents and catheters, a breakthrough aid in cardiovascular surgery. ICI Pakistan Pharmaceuticals imports finished products and also arranges its products to be manufactured under toll-manufacturing agreements. Animal Health The Animal Health Business of ICI Pakistan is involved in the marketing of veterinary medicine for use on livestock. The portfolio consists of products from Schering-Plough Animal Health Corporation and Norbrook USA. Investment ICI Pakistan has an exceptional record of investment in Pakistan, through continuous evaluation of new business opportunities with appropriate technologies
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 250
for transfer to Pakistan. Over the years, ICI Pakistan has invested in excess of Rs 33 billion in capital projects since its inception at Khewra, over fifty years ago. The most significant investments have been Rs 24 billion in the PTA plant in 1998 and Rs 2.9 billion for the Polyester expansion project in 1997. From 1996 to date, the Company made the following investments: Year Project Amount Million 1996 - - 1997 Polyester Expansion Project 2,953.5 1998* PTA Plant Commissioning 23,747.6 1999 - - 2000 - - 2001 - - 2002 Soda Ash Automation, Debottlenecking
& Power Cogeneration 555.0
As explained earlier, the PTA Business was demerged into a separate publically listed company, Pakistan PTA Limited The above represents investment in major projects. In addition, the Company spends around Rs 500 million annually in sustenance capital expenditure to ensure integrity and efficiency of its existing asset base. As a result of these investments, the production capacity of various ICI Pakistan plants has increased considerably over the years. At the end of 2001, the nameplate capacities of its various production facilities was as follows: Business Annual Nameplate Capacity Production Polyester 55,533 72,911 Soda Ash 185,000 219,450 Paints - 14,443 Agrochemicals - 493 Chemicals - 6,283 Sodium Bicarbonate 11,543 In metric tones except Paints & Agrochemicals, which are 000's of litres The capacity of the Paints, Agrochemicals & Chemicals plants are indeterminable because these are multiproduct plants involving varying processes of manufacture Safety, Health and Environment Good Safety, Health and Environmental (SHE) performance is essential to the continued success of ICI. The SHE management system is integrated into the company's overall structure and ensures that goals are established, resources allocated, performance monitored and corrective action taken as required. A new
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 251
set of tough SHE targets for the next five years have been established to take ICI into the new millennium. The Principles by which the Company operates, within the limits of current knowledge, are: • All work related injuries and illnesses are preventable. The goal is zero harm. • All escapes of hazardous materials can be prevented and emission in the course
of operation will progressively be reduced towards zero. • Adherence to the highest standards for the safe disposal of waste materials. • Efficient utilisation of energy, water and other resources, both natural and
man-made. ICI Pakistan's achievement in the area of Safety, Health and Environment has been recognized by its principal shareholder, ICI plc (UK), and over the years, the Company received numerous awards for exemplary performance in this area in competition with all other ICI companies around the world. Details of ICI plc Chief Executive's SSHE Awards received by the Company, in recognition of its exemplary performance in SHE are provided below: Year Award
2001 Winner - Product Stewardship Award 2000 Winner 1999 Sustained SHE Excellence Award ICI Group SHE
Excellence Leadership Award Special Commendations 1998 Joint Winner (with Quest) Highly Commended 1997 Highly Commended 1996 Runner Up 1995 Highly Commended
Human Resources ICI Pakistan believes that its people are its most valuable asset. The Company currently employs 1,700 individuals of which 500 and 1,200 and in management and non-management cadres, respectively. The Human Resource Department provides professional support to the entire organization to ensure that business goals are realized through people whose own personal aspirations are also met.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 252
Training and Development of staff is considered to be a core value at ICI Pakistan. This is an essential responsibility of every Manager and is a part of his `Key Result Area'. The Company has a very proactive Corporate Training Department, which apart from facilitating most of individual training needs, also provides extensive in-house training. Social Responsibility Social initiative and involvement at ICI Pakistan takes the form of active support to organizations, providing essential services to community members, particularly in the field of education and medical assistance. ICI Pakistan provides financial assistance to charitable projects, non-profit organizations and developmental initiatives. Over the years a host of worthy causes have received financial support and assistance, through sponsorship, for uplift initiatives and community development projects. Some of the projects supported by ICI Pakistan include the following: • Construction of a fountain at a major roundabout in Karachi. • Sole sponsorship of a Rs 10 million Management Centre in cooperation with
the British Council, Karachi • Financial support of over Rs 5 million to charitable and developmental
projects in the Sindh and Punjab • Donation of Rs 1 million to the Al-Shifa Trust Eye Hospital In addition to the above, the Company also set up the ICI Pakistan Foundation in 1991, to serve as a platform through which the Company's philanthropic and social aid initiatives are channelled. As part of its community development initiatives, the ICI Pakistan Foundation has contributed to a series of building and construction projects, in and around the Khewra community, where the Company's Soda Ash plant is located. In addition, it has also provided in excess of Rs 24 million in the last five years to worthy causes, including: • The Agha Khan Foundation • Lahore University of Management Sciences • Institute of Behavioural Sciences • Layton Rehmatullah Benevolent Trust • Anjuman Behbood-e-Samat-e-Atfal • Lady Dufferin Hospital Foundation • Mary Adelaide Leprosy Centre
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 253
Industrial Chemicals (Pvt.) Limited 2nd Floor Eveready Chambers, I.I Chundrigar Road, Karachi-74200 Tel: - (92-021) 2627390, 2627405 Fax:-(92-021) 2632730 Factory: 29-Site, Manghopir Road, Karachi- 75700, Tel: - (92-021) 2570203, 2570205, 2572957, Cable: bichromate, Fax: - (92-021) 2562576, e-mail : [email protected] Industrial Chemicals (Pvt.) Ltd is a company engaged in the manufacture of Chromium Chemicals. It operates two factories and its major product is basic chromium sulphate, a chemical used in the production of wet blue leather. Production Capacity : 1) Sodium Bichromate/Dichromate Hydrous : 3,000 metric tons/annum. 2) Basic Chromium Sulphate : 12,000 “ “ “ 3) Sodium Sulphate : 1,200 “ “ “ The major raw material used in producing these chemicals are: - • Soda ash (light) • Chrome ore • Sulphuric acid • Dolomite • Industrial glucose • Ferrous sulphate • Sodium bi sulphide Plant Description : The plant comprises of seven areas: 1. Kiln Feed Preparation 2. Roasting & Energy Recovery 3. Leaching/Residue Treatment 4. Chrome Conversion & Evaporation/Sodium Sulphate Purification 5. BCS Conversion/Drying & Bagging 6. Tank Farm 7. Utilities.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 254
Kohinoor Soap & Detergents (Pvt.) Ltd. Tibet Centre, M.A Jinnah Road, Karachi-74400 Tel:- (92-021)7725648-49, Fax:- (92-021)7720978 - 7723398 Kohinoor Soap & Detergents (Pvt). & Its allied industry is the oldest Group Involved in the manufacture of cosmetics, soaps/detergents and toiletries in the country right since independence, in 1947. The Group also manufactures the all time famed make up cream namely, “Tibet Snow, which is the company’s most demanded product. Products • Soap • Detergents • Cosmetics • Toiletries
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 255
LEINER PAK GELATINE LIMITED 17-G, Gulberge -2, Lahore -54660, Tel:- (92-042) 5756953-4, Fax (92-042) 5710604 e-mail: [email protected] Status of the Company : Public Limited Company
Year of Registration : 1983
Activities/Products of the Company: Manufacturer & Exporter Of: -
A. “Halal” Gelatine I) Pharmaceutical Grade II) Edible (Food) Grade
B. Di-Calcium Phosphate (Feed Grade)
Brand/Trade Name : Leiner
International Recognized Certifications :
ISO 9002, ISO 14000 and also registered in Dun & Bradstreet World Database
Number of Employees : 364
Members of (Trade Association) : Lahore Chamber of Commerce & Industry, 11, Shahra-e-Aiwan-e-Tijarat, Lahore
Basic Raw Materials:
a) Raw Bone b) Crushed Bone c) Hydrochloric Acid d) Caustic Soda Liquid e) Lime f) Chemicals
Products and Plant Capacity:
Estimated Capacity (M.Tons)
Actual Production (M.Tons) 2000-2001
Gelatine
3,000
1,071.896
Di-Calcium Phosphate 15,000 4,738.450
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 256
Master Paint Industries (Pvt.) Ltd. First Floor, LDA Plaza, Egerton Road, Lahore, Tel:-(92-042) 6307256-60, UAN:-111-333-465 Fax:-(92-042) 6307253, 7247474 website:- www.masterpaints.com.pk
Master Paints Industries (Pvt) Ltd is now days considered as one of the Pakistan’s Leading Company in paint Manufacturing. It came into existence in 1975. The foremost objective of the company was to introduce modern paint technology in Pakistan. Soon after its existence, it acquired a very sound position by attaining good market share and became one of the leading decorative paint manufacturing company in Pakistan in terms of quality. Behind this marvelous progress of the company, there are highly qualified personnel who shaped the company into leading organization on the basis of their qualification and experience. Master pant’s R&D department remains in pursuit of excelling good quality and innovating the modern technology in decorative paints. Master Paints fortunately has a very dynamic team of Marketing and Production personnel who have been striving to keep the company as the leading one in Pakistan’s Paint Market. Now the consumers have admitted the Master Paint as the symbol of full satisfaction. 45136 liters of paints per month are being produced by Master Paints (Pvt) Industries Limited (0.54 million liters/year) In accordance with demand following is the list of raw materials:- 1 Long Alkeyed Resins 2 Titanium Dioxide 3 Lead (36%) 4 Calcium (10%) 5 Cobalt (12%) 6 Granding Balls 7 Dipentene 8 Britty(China Clay) 9 W.Spirit 10 Mowilith(Poly Vinyl acetate) 11 Natrosol (Thickening Agent) 12 Exkin 2(Anti Skinning Agent) 13 Xylene . 14 Benzyl Alcohol
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 257
Main Raw Materials : Ortho Xylene (OX)
2-Ethyl Hexanol (2-EH)
Products : Phthalic Anhydride (PA) Di-Octyl Phthalate (DOP) Maleic Anhydride (MA)
Capacity : PA 12,000 TPA DOP 15,000 TPA
MA 360 TPA
Process PA is produced from OX mixed with air. Apart from sales in the market, PA is also consumed in-house with 2-EH to produce DOP. MA is the by-product of PA.
Nimir Chemicals Pakistan Limited 51 N, Industrial Area, Gulberg-II, Lahore. Tel: (92-042) 5718001-9, Fax: (92-042) 5718013, e-mail: [email protected] Factory:- 14.8 Km, Shaikhupura, Faisalabad Road, Mouzza Bhikki, Distt. Shaikhupura.
NCPL – Flow ChartMaleic
Anhydride (MA)
Ortho Xylene (OX)
Unsaturated Polyester Resins
Fiber Glass
Phthalic Anhydride
(PA) Alkyd Resins
Enamel Paints
2-Ethyl Hexanol (2EH)
Di-Octyl
Phthalate Flexible
PVC
Shoes, Hoses / Pipes,
Artificial Leather,Cables
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 258
National Insecticides Company (Private) Limited 28-Abdullah Haroon Road, P.O Box 7129, Karachi -74400 Tel:-(92-021) 5687171, 5689254-57, Fax:- (92-021) 5670073
Businesses Summary
NICL gears up to have a more focused approach towards crop protection and to redress the worries of farmers by providing them with a wide range of premium priced (branded) as well as quality me-too products.
The biggest edge, NICL has over competitors is the wide range of pesticides for every crop and for every season, round the year. Besides, these products cover the field-bed preparations to post-harvest care.
With Head Office based at Karachi and local branches in all the major agricultural centers of the country, NICL is ideally networked to carry out product promotional activities according to the specific demands of the farmers. The efficient dealers network of NICL has also enabled to provide excellent logistic services to the satisfaction and convenience of its customers.
NICL, through its field strength, technical competence and ethical business practices has been able to attract some of the major names in global agrochemical industry, such as Aventis Cropscience, Cheminova, Luxan, Sumitomo Chemical, Agtrol, BASF and other reputable manufacturers/suppliers from Europe and China. In the field of Application Technology NICL has marketed CF Valves (G.AT.E.S. of USA) and Matabi sprayers (Goizper of Spain).
NICL Operations Unit
Initially, NICL was introduced as a joint venture with Union Carbide, established in 1969, which pioneer in converting small packing from bulk packs through rotary filling machine, having filling capacity of more than 2,000 bottles per hour. It has automatic filling, labeling and printing machines imported from Europe. Consistent efforts are being made for upgrading this facility. The initiative of having advanced quality control and a laboratory with High Performance Liquid Chromatography (HPLC) facilities has placed NICL as one of the most reliable production plants in Pakistan.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 259
LIST OF REGISTERED PESTICIDE OF NICL'S PRODUCTS Sr.No. Brand name Common name
1 ACETOR 50%( w/w) EC ACETACHLOR 2 BANDOX 60%( w/v) EC BUTACHLOR 3 BIFENTHRIN 10% (w/v) EC BIFENTHRIN 4 BUPROFEZIN 25% (w/w) WP BUPROFEZIN 5 CHAMPION 77% (w/w) WP COPPER HYDROXIDE 6 CHASER 60% (w/w) SL METHAMIDOPHOS 7 CHLORPYRIFOS 40% (w/v) EC CHLORPYRIFOS 8 CHONG MAN GUANG ! 8% (w/w) EC ABAMECTIN 9 CHONG SHA 50% (w/w) SP PROFURITE AMINIUM 10 CYPERMETHRIN 10% (w/w) EC CYPERMETHRIN 11 CYREN 4E (w/v) CHLORPYRIFOS 12 DEFENSE 50% (w/v) SC DIAFENTHIURON 13 DIAFENTHIURON 50% (w/w) DIAFENTHRIURON 14 FENTHRIN 20% (w/w) EC FENPROPATHRIN 15 FENVALERATE 20%(W/W) EC FENVALERATE 16 FRENO 50%(W/W) SP PROFENOFOS 17 GETRID_ 20% (w/w) SP ACETAMIPRID 18 IMIDACLOPRID 25%(w/w) WP & IMIDACLOPRID 19 ISOPROTURON 500 (w/v) FL ISOPROTURON 20 JIANGMEN 60% w/v) SL METHAMIDOPHOS 21 LABDATHRIN 2.5% (w/v) EC LABDA-CYHALOTHRIN 22 MANCOZEB 80% WP MANCOZEB 23 MONOFOS 40% WSC (W/v MONOCROTOPHOS 24 MONOMEHYPO 5%G (w/w) MONOMEHYPO 25 PYRIFOS 40% (w/v) EC CHLORPYRIFOS 26 QUATTRO 200/200 (w/v) EC BROMOXYNIL+MCPA 27 SHAMANTE 20% (w/w) WP PYRIDABEN 28 SIGURO 20% SL ACETAMIPRID 20 SKOLIX 5%EC ALPHA-CYPERMETHRIN 30 STOMP 330 (w/v) PENDIMETHALIN 31 STRIKE MA 60 (w/w) WP CHLOROTOLURON+MCPA 32 SWAT 75% (w/w) WP . ISOPROTURON 33 TAMEX 360 (w/v) EC BUTRALIN 34 THIOLUXAN 35% (w/v) EC ENDOSULFAN 35 TITONIC 20% (w/w) SP ACETAMIPRID 36 TOTTI 20% (w/w) EC FENPROPATHIN
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 260
National Petrocarbon (Pvt.) Limited 12th floor, Uni-Centre I.I Chundrigar Road, P.O Box 6782, Karachi-74000 Tel:- (92-021) 2417823-24 Fax:- (92-021) 2413480 e-mail:- [email protected]
website:- www.alhamzagroup.com
Date of Establishment: : 1980
Product : Carbon Black
Installed Capacity : 10,000-M. Tons per Year
Revised Capacity (July2002) : 20,000-M. Tons Per year
Raw Material :
Carbon Oil
The Plant of the company is situated at Bin-Qasim, Pipre, Karachi.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 261
OLYMPIA CHEMICALS LIMITED 23-Davis Road, Lahore, - 5400 Ph:(92-o42) 6302864, 6301979-81, Fax::(92-o42) 6363920, 6371142 Telex: 47385 FEEDS PK. GRAMS: KHUDADOST, e-mail:- [email protected] Olympia Chemicals Limited (OCL) is a Soda Ash plant of Olympia Group, which is successfully involved in conglomeration of industries like, synthetic, textile, power, poultry feed and hatchery. OCL is located in the remote corner of northern Punjab at Warcha, Dist Khushab, spread over an area of 190 acres. The present rated capacity of the plant is 120 metric tons per day, which is likely to be doubled by January 2003. The plant is based on Chinese technology and locally available raw material like Sodium Chloride (Salt), Calcium Carbonate (Lime Stone) and Coal. The quality of the product is guaranteed by a reputed Chinese design company (one of the largest design companies in the world) namely Chengdu Chemicals Engineering Corporation of China (CCECC), which also trained OCL manpower for smooth running of the plant. Soda ash user industries are glass, paper, paint, silicate and detergents. OCL was conceived in 1995 aimed at meeting growing domestic demand resulting in considerable foreign exchange savings for Pakistan besides improving supply situation of Soda Ash. It is thus contributing toward economy by import substitution, taxation, development of natural resources and employment. The plant went into full production in a record time of two years i.e in May 2000, with a financial out-lay of Rs.600 million. OCL employs solvay process, which is also being employed by the leading Soda Ash manufacturers, the world over. One of the striking features of OCL is that it pioneered use of local coal for power generation, which makes it cost effective and compete with a multinational giant like ICI. OCL presently has about four hundred personnel on it's rolls (besides contractors) and almost 60% manpower belongs to Khushab District. The company has planned residential accommodation for its entire work force. As welfare measure development of a hospital and school (upto matric) are on the drawing board, beside provision of telephone, postal and bank facilities. Lower ladder employees can also expect a gratis residential plot near Qaidabad, on retirement.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 262
OXYPLAST PAKISTAN (PVT.) LTD. Silver House -11-E, Block 6, P.E.C.H.S., Karachi-75400 Tel: - (92-021) 4312901-5 Fax:-(92-021) 4312906 e-mail: [email protected] web site:- http//www.oxyplast.com.pk
OXYPLAST PAKISTAN (PVT) LTD was established on 19-12-1991 and started commercial production of Thermosetting Powder coating in 1993. It is the pioneer in manufacturing thermosetting powder coating in Pakistan under license and Technical collaboration of OXYPLAST BELGIUM N.V/S.A. The Company has the distinction to be the 1st ISO 9002 certified Powder Coating manufacturer in Pakistan. OXYPLAST PAKISTAN offers its customers a wide range of all types of Powder coating of standard colours from ready stock or on short notice. Also, powder coatings is tailore made to match the customer’s individual requirements. Following are 3 basic types of powder coating, which are being produced:
1. EPOXY POWDER COATINGS (Included Fusion Bonded Epoxy). 2. EPOXY POLYESTER POWDER COATINGS. 3. POLYESTER POWDER COATINGS.
Production Capacity
1600 M. Tons/Annum. (8 hours single shift basis).
Manufacturing Process Of Powder Coating:- A. WEIGHING OF RAW MATERIALS B. DRY MIXING C. KNEADING AND CRUSHING D. GRINDING (MICRONIZING) E. DRY MIXING (WHEN REQUIRED) F. PACKING Generic Name And Brussels Nomenclature:- Generic Name: THERMOSETTING POWDER COATING. Brussels Nomenclature :- POLYESTER : 39.07.9990
EPOXY : 30.07.3000
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 263
Pak Petrochemical Industries (Pvt.) Ltd. Polymer House, 136, Main National Highway, Karachi-75030. Tel: - (92-021) 5019701-4 Fax:-(92-021) 5018552-3 e-mail: [email protected] web site:- http// www.polystryrene.com.pk
The Company, with 35 % Foreign Direct Investment is the only manufacturer in Pakistan of whole range of Polystyrenes, which serve as primary raw materials for several dozen plastic products. The Commercial Production started in 2nd half of the year 2000. Apart from serving the needs of Pakistani Plastic Industries, the Company , also exports its products to the following countries: 1. Turkey 2. Egypt 3. India 4. Mozambique 5. Taiwan 6. China Products & Capacities:
Product PCT Heading Annual Production Capacity
General Purpose Polystyrene 3903-1900 20 M. Ton / Day High Impact Polystyrene 3903-1900 Expandable Polystyrene 3903-1100
80 M. Ton / Day on Alternate basis.
LIST OF RAW MATERIALS & ADDITIVES ETC.
Description PCT Heading
Chemical Classification
Form
Styrene Monomer 2902-5000 Cyclic Hydro Corbon Colorless Liquid
Ethyl Benzene 2902-6000 Cyclic Hydro Corbon Colorless Liquid
Mineral Oil 2710-0091 Petroleum Oils Other Crude
Colorless Liquid
Stearic Acid 3823-1100 Industrial Monocirboxyhc White Powder
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 264
Fatty _Acid Calcium Stearate 2915-7090 Derivative of Acyclic
Stearic Acid White Powder
Zinc Stearate 2915-7090 Derivative of Acyclic Stearic Acid
White Powder
Irganox 3812-3000 Antioxidant preparation & compound stabilizers for other rubber or Plastics.
White Powder
Betylated Hydroxy (BHT)
3812-3000 Antioxidant preparation other compound stabilizers for rubber or Plastics.
Colorless Liquid
Stabilizer G-126 3812-3000 Antioxidant preparation & other compound stabilizers for rubber or Plastics.
Colorless Liquid
Ethyl BIS-Stearamide (EBA)
3404-9091 Artificial Waxes White Powder
Butadiene Rubber (B.R)
4002-2000 Synthetic Rubbers Colorless Semi "Transparent Blocks
Lubricants 2915-7090 Carboxylic Acids and Anhydrides etc
White Powder
Benzyle Per Oxide (BPO)
2916-3200 Peroxides White Crystals
Tertiary Butyl Per Oxy Benzoate (TBPB)
2916-3990 Peroxides Yellowish Liquid
Poly Wax 3404-9090 Artificial Waxes Soft White Beads
Pentane 2901-1010 Hydrocarbon
Colorless Liquid
Tri Calcium Phosphate (TCP)
2835-2600 Phosphates White Powder
Calcium Carbonate
2836-5000 Carbonates White Powder
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 265
Introduction & History
Prime Chemiclas (Pvt) Ltd. a various chemicals manufacturing project was established in 1985 and commercial production started in 1987 with Sulphuric Acid as basic product. In 1989 Alum Sulphate manufacturing facility was added. Similarly in 1990 Sodium Sulphite, Sulphur Rolls, Sulphur Powder, Chromium Sulphate and micro nutrients for specific use were developed and their production started. Project was up graded & capacities further increased in 2002.
New project is capable of producing the following chemicals:-
The Products:
1) Sulphuric Acid (Industrial grade) 2) Sulphuric Acid (Electrolyte grade 3) Alum Sulphate (Industrial grade) 4) Alum Sulphate (pharmaceutical grade) 5) Alum Sulphate (Water Treatment grade) 6) Aluminium Ammonium Sulphate 7) Sodium Sulphite 8) Sulphur Rolls & Powder 9) Chromium Sulphate (temporary closed)
The Management:
Project is handled by qualified chemical Engineers; Economist & Chartered Accountants Mr. M. Nazir Chaudhry, a Chemical Engineer with over 35 years experience is the Chief Executive of the project while Mr. Badar Munir Chaudhry, a known economist is the project Director.
Service to the Nation: Prime Chemical (Pvt) Ltd have the honour in serving the 90% Industrial Sector including strategic sector of the country.
Company Moto :- Service with high quality products.
Prime Chemicals (Pvt.) Limited 257-Main Market, Riwaz Garden, Lahore, 54000 Tel:-(92-042) 7229898, 7312829 Fax:- (92-042) 7233023 / 7237106 e-mail:- [email protected] Factory:- 10th KM Faisalabad Road, Sheikhupura, Tel & Fax:- (04931)882228, Mobile:- 0300-8447580
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 266
Pakistan National Chemical Industries (Pvt.) Ltd. 107, Defence Housing Authority, Phase I, Main Korangi Road, Karachi-75500 Tel:- (92-021) 5880064, 5887035, 5880051-54 Fax:-(92-021) 5890603 e-mail : [email protected] Factory : Plot No 226-231, Hub Industrial Trading Estate, Hub, Balochistan Tel: (92-202) 32975, 33749, Fax (92-202) 33095 Pakistan National Chemical Industries (Pvt.) Ltd was formed in the year 1986-1987 and commenced production operations in the year 1991. The company is based in Karachi and owns two manufacturing units. One is in Hub Industrial Estate Lasbella, 30-KM from Karachi and the other is at SKP near Lahore. The total production capacity of both the units is 6,000-00 M/Ton per year. The main objective of the company is to manufacture highly activated Bleaching Earth suitable for bleaching, refining, decolorizing of animal and vegetable oil, fats, industrial and mineral oil and lubricants from indigenous raw material.
The company lays a significant stress on Research & Development as well as qualitative testing of products at various stages during manufacturing and maintains a very well equipped laboratory. It is the only Pakistani Bleaching/Fuller's Earth which is being exported to several South Asian countries and to Middle East. Raw Material The raw material for activated bleaching earth is Montmorillonite clay derived from degeneration of volcanic ashes. This is chemically an aluminum hydro silicate in which the silicic acid to aluminum is 4:1 Our country is blessed with rich deposit of Montmorillonite in the province of Punjab, NWFP & Azad Kashmir. National Chemicals (Pvt.) Ltd owns mines in Garhi Chandan and Aza Kheil, Area Peshawar Division, which has extensive deposits of Mines capable of producing highly Activated Bleaching Earth.
Process
• The clay is passed through the Ball Mill along with water, which blends the clay with water called Slurry in technical term.
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 267
• The Slurry is then shifted to storage tank and after settling, it is shifted to another tank where it is activated by using Hydrochloric Acid. During this process, the samples are checked in the laboratory to ensure adherence to quality parameters. Once the desired parameters are achieved the Activated Slurry is shifted to another storage tank for removing the Hydrochloric Acid by washing in fresh water in order to achieve the desired pH value.
• The Activated Slurry is then transferred to filtration process where the water
is removed and the clay in the shape of Cake is collected for further process.
• Cake is fed to rotary dryer which is heated to ensure removal of moisture
from the Cake and the final product is passed on the Pulverizer where the granule are ground to achieve desired particle size as per specified parameters.
• After the Pulverizer the material is packed in the bags and is kept in the
warehouse for delivery to consumer. Capacities SUPERMONT : 3,000-00 M/TON GOODEARTH : 3,000-00 M/TON
Prospects of Chemical Industry in Pakistan
Experts Advisory Cell 268
Established in 1837 in Cincinnati, Ohio, USA, Procter & Gamble serves over 5
billion consumers in 160 countries worldwide. P&G markets nearly 300 brands and its worldwide sales achieved US$ 40 billions. The P&G community consists of nearly 102,000 employees working in almost 80 countries worldwide.
P&G has been dedicated to research and break-through innovation for as long as it has been in business, which helped the Company to develop products that make every day life better for all the people. Tide, for example was the world's first heavy-duty synthetic detergent. Pampers created disposable diapers business. Pert Plus was the first two-in-one shampoo and conditioner. P&G invests more yearly than US$ 1.7 billion in research and development, which helps to create products of superior quality the world over. Thus far P&G has filed more than 27,000 patents, making it one of the most innovative companies in the world. Procter & Gamble started its operations in Pakistan in 1991. Today, P&G sells 13 high quality brands to Pakistani consumers (shampoos, detergents, soaps, baby care and feminine protection products, Vicks products and snacks). Locally, P&G produces bar soaps and repacks bulk Pampers into smaller Pampers packs. It also produces Vaporub at a contract manufacturer location. P&G Pakistan has achieved leadership in various important brand categories; for instance, shampoos including Pantene and Head & Shoulders have a share of more than 50% in the market. Ariel and Pampers are market leaders.
P&G's goal is to be the finest Global Local Consumer Goods Company operating in Pakistan. Due to the high quality and competitive costs available here, P&G exports into neighboring countries like Saudi Arabia, Yemen, Syria and Afghanistan. P&G is currently the only toilet soap manufacturer exporting premium bar soaps.
In Pakistan, P&G is totally committed to the development of the country and its people. Various social and development programs have been initiated by P&G in Pakistan which, are improving the lives of millions of Pakistani consumers, especially children and are leading to reduction of common diseases via heightening awareness of good hygiene habits. P&G is an active member of ABC, OICCI, MAP and the Pakistan Advertisers Society. Furthermore, the company is dedicated towards fulfilling its responsibility of a good corporate citizen by providing better life opportunities to the people of
Procter & Gamble Pakistan (Pvt.) Ltd.Bahria Complex 1, 6th floor, M.T. Khan Road, Karachi-74000 Tel:-(92-021) 111-000-764, Fax:- (92-021) 5610801 website www.pg.com.pk
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Pakistan. Campaigns like Ariel - Help the Needy, Safeguard - Health & Hygiene Awareness Program for children, Pampers - Young Mothers Educational Program and Ariel - Maa, have really done wonders for the image of the company.
Procter & Gamble owns a key place in the Pakistani market and continues to strive hard towards growing its business at a higher pace, and is indeed equipped enough to carry this off successfully by optimally utilizing its skilled and trained professionals as well as the strength of its brands in the Pakistani market.
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PAK CHEMICALS LIMITED Hakimsons Building, 19, West Wharf Road, P.O. Box 4739, Karachi- 74000 Tel: - (92-021) 2313508-14 Fax: - (92-021) 2314260 e-mail : - [email protected]
Nature of Concern Unit : Manufacturing of Heavy Chemicals.
Year of The Installation : 1949
Installed Capacity: Sulphuric Acid Plant 23,500-24,000 M/Tons Alumunium Sulphate Plant 4,500-4,600 “ “ Alumina Alum Plant 1,200 “ “
No. of Employees : 69
Description of Raw Material : i) Sulphur
ii) Grinded Bauxite
iii) Ammonium Sulphate
Description of Goods : Manufactured
• Sulphuric Acid (Comm.)
• Sulphuric Acid (Elec.Dilute)
• Sulphuric Acid (Elec.Conc.)
• Aluminium Sulphate
• Alum Red
• Alum White
Refined Grade Acids.
• Sulphuric Acid Ex-Pure
• Sulphuric Acid A.R.Grade
• Hydrochloric Acid Ex.Pure
• Hydrochloric Acid A.R.Grade
• Nitric Acid Ex-Pure
• Nitric Acid A.R.Grade
• Sulphuric Acid (For Gerber Test)
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Brief History: M/s Penta industries (Pvt) Ltd., was founded, in 1983 by Dr. Suleman Vohra. Dr. S. Vohra after doing his PhD in 1967 from the university of Glasgow, UK. in Petro-chemical joined Valika Chemicals and founded M/s. Universal Chemical industries along with partners. In 1983 partners separated and Sr. S. Vohra founded Penta Chemical industries at LA-7/1-1, Federal B. Industrial area, Block 22, Karachi and took a modest start with measure facilities. Capacity: Presently the factory has the facility of locally fabricated stainless steel vessels of one ton and 2 tons capacity. It is producing the following text i le auxiliaries: - • Poly (Vinyl acetate) for textile • Acrylic Binder for textile Printing • Acrylic Sizing Agent • Amino resins for textile • Tallow based softening agents. • Cationic softener • Wax emulsions etc. The above chemicals along with other minor chemicals are produced as per demand and requirement of the textile industry from season to season. Raw Material: - Basic Raw materials for the products are currently imported which, includes: -
Penta Industries (Pvt.) Ltd. LA-7/1-1, Block No. 22, Federal B Industrial Area Karachi-75950 Tel Off: - 92-021-6683904-5, Fax: - 92-021-6686756 Tel (factory): - 92-021-6364180, 6361344, 6366509 Fax: - 92-021-6360029 Cable:- “PENTAFIX”
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Monomers • Vinyl Acetate rnonomers • 1-Butyl acrylate • Acrylic Acid • 2 - E t h y l h e x y l A c r y l a t e • Styrene • Methacrylic Acid • Methyl Methacrylate • Acrylointrile. • Acrylamice. Emulisifier & Protective Colliods:- (a) A. number of cationic, Nonionic and Anionic emulsifiers as per requirement. (b) Poy (Vinyl alcohol) fully and partially hydrolysed from Gohsenol (Japan), POVAL (Taiwan) etc. Locally Produced Chemicals: - • Formulin • Urea • Caustic Soda • Acids (Sulphuric ,Formic, etc.)
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Syngenta Pakistan Limited [Formerly Novartis (Pakistan) Limited] S-50, S.I.T.E., Hawksbay Road, Karachi 75730 Tele: (92-021) 2565172-77,
Fax: (92-021) 2565181,2565191 Firm :
Public Limited
National Tax Number : 28-02-3308055 Sales Tax Registration Number :
11-00-3808-001-19
Annual Turn Over : 1,820 millions (Year 2001)
Type of Business :
Pesticides
List of Raw Materials :
Cypermethrin Technical
Diafenthiuron Technical
Diazinon Technical
Emulsogen EL
Isophorone
Kelzan Biopolymer AG
Profenofos Technical
Propylene Glycol
Reoplast 39
Sermul EA 27
Shellsol A150
Soprophor FL
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Syngenta Products Products Lead Al Other Al
Insecticides. Actara 25 WG Thiamethoxam 25% Agrimec 018 EC Abamectin 1.8% Basudin 60 EC Diazinon 60% Curacron 500 EC Profenofos 50% Deltanet 400 EC Furathtiocarb 40% Karate 025 EC Lambda Cyhalothrin 2.5% Match 050 EC Lufenuron 5% Plenum 25 WP Pymetrozine 25% Polo 500 SC Diafenthiuron 50% Polytrin C 220 ULV Profenofos 20% Cypermethrin 2% Polytrin C 440 EC Profenofos 40% Cypermethrin 4% Proclaim 019 EC Emamectin Benzoate 1.9% Supracide 40 EC Methidathion 40% Trigard 75 WP Cyromazine 75%
Seed Treatment Actara ST 70 WS Thiamethoxam 70% Deltanet ST 400 CS Furathiocarb 40%
Herbicides Aatrex 90 WG Atrazine 90% Callisto 100 SC Mesotrione 10% Dual Gold 960 EC S-Metolachlor 96% Enfield 75 WG Trifloxysulfuron 75% Gesapax Combi 80 WP Ametryn 40% Atrazine 40% Gramoxone 200 SL Paraquat 20% Krismat 75 WG Trifloxysulfuron 1.85% Ametryn 73.15% Logran Extra 64 WG Triasulfuron 4% Terbutryn 60% NOA 407-855 NOA 407-855 10% CGA 185-072 2.5% Primextra 500 FW Metolachlor 30% Atrazine 20% Primextra Gold 720 SC S-Metalachlor 40% Atrazine 32% Rifit 500EC Pretilachlor 50% Topik 15 WP Clodinafop-Propargyl 15% Topogard 500 FW Terbutryn 35% Terbuthylazine 15%
Fungicides Ridomil Gold MZ 68 WP Metalaxyl-M 4% Mancozeb 64% Ridomil MZ 72 WP Metalaxyl 8% Mancozeb 64% Score 250 EC Difenoconazole 25% Thiovit 80 WP Sulphur 80% Topas 100 EC Penconazole 10% Trimiltox Forte Copper 21% Mancozeb 20%
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Sardar Chemical Industries Limited is the second largest dyestuffs manufacturing Company in Pakistan. Quality of its dyestuffs strictly conforms to the International Standards and these are being successfully used in the native Industry. These dyes are also being exported and have met the entire approval of buyers both in Pakistan and abroad. All the dyestuffs produced are free from AZO dyes, prohibited under the German Consumer Goods Act and certification to this effect has duly been obtained from the accredited Laboratories of U.K. & Germany. Therefore, big & small tanneries and textile units in the country, which are engaged in the export of materials, are consistently using these dyestuffs to the entire satisfaction of their local & foreign customers. The Company was established in 1989 as a Private Company and went into production on Ist January, 1993. It was floated on the Stock Exchanges in Pakistan in October, 1994. Sardar Chemical Industries Limited is involved in the manufacture of various classes of dyestuffs producing Direct dyes,- and Reactive dyes along with Optical Brightener for the Textile Industry and Acid dyes for Leather Industry. Having installed capacity of 600 tons of dyestuff, the imports for all kinds of dyestuffs and chemicals in Pakistan range to approximately 6 to 8 Billion Rupees i.e. US$ 135 (M), leaving the huge gap for the local industry to fill. The leading multinational in Pakistan, Clariant has a turn over of almost 3 Billion Rupees which comprises of mainly locally produced goods and a portion of it through imported products. Products: • Leather Dyes • Direct Dyes • Optical Brighteners • Reactive Dyes for printing • Reactive Dyes for Dyeing
Sardar Chemical Industries Limited Suite #9, 2nd floor, Hafeez Centre, Mian Boulevard Gulberg-III, Lahore Tel :(92-42) 571154, 5710148, 5753402 Fax::(92-42)
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R a w M a t e r i a l s : The Company is regularly importing raw materials required in the manufacturing of above-mentioned dyestuffs. These raw materials are imported f r o m various countries in bulk quantities. The details are given as below: S.No. Raw Material Import Qty for 2 months (Kgs) I. H.Acid 85% (On 100% Basis) 5100 2. Para Nitro Aniline 99% 2000 3. Para Cresidine 98% 600 4. J, Acid 90% (on 100% Basis) 1000 5. Dehydro Thio Para Touldine Mono Sulfonic Acid 100% 1000 6. 2-Amino Naphthalene 4,8 Disulphonic Acid (On 100% Basis) 500 7. 3-Amino Acetanil D Hydrochloride 100% ° 500 8 Carbonyl J Acid 70% (on 100% Basis) 1200 9. 4-Amino 1,1 AZO Benzol 3,4 Disulphonic Acid (On 100% Basis) 600 10. Naphthalene-2-Sodium Sulphonate 82% 1000 11. M Xylidine-O-Sulphonic Acid 800 12: Anthranilic Acid 97% 1000 13. Derma Bordeaux V 120% (Acid Red 119) 1000 14. Direct, Turquoise Bloue F-BL 400% 1000 15. Nylosan Rubine N-5BL (Acid Red 299) 600 16. Meta Amino Phenol 98% 1000 17. 0-Toludine5-Sulfonic Acid 100% 800 18. Resorcine 1000 19. Sulphanilic Acid 2000 20. 2-Amino-4-Chloro-1-Hydroxy Benzene (On 100% basis) 500 21. 3-Methyl 1(4-Sulphophenyle-5 Parazolone 100%) 500 22. 4,4 Diamino Sulfanilide 100% 5100
4-Amino-4-Nitro Amino Diphenyl 2-Sulphonic Acid (On 100% Basis) 1000
24. 2-Amino-4-Nitro-l-Hydroxy Benzene 98% 800 25. Aceto Acetic 0 Anisidine 99% ° 500
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The Sandal Group established Sandal Dyestuff Industries (SDI) in 1995 to offset reliance of local textile industry on international brands for dyestuff needs. Today SDI is the largest dyestuff manufacturer of its kind in the country producing a wide range of products at par in quality with the best in the world. SDI is now Pakistan’s largest Dyestuff & Pigment producer and the only producer of Powder Pigments, Copper Pthalocyanines and Bifunctional Reactive Dyes. Sandal’s Dyestuffs are in great demand in quality driven markets like Australia, Turkey, Italy, Spain and Egypt. Since exports of pigment emulsions to Bangladesh in 1996, the list of export items has expanded to Acrylic Binders, Pigment Powders and Reactive Dyes. Plant Capacity: The plant has the capacity to produce various dyestuffs in the following quantities:
Plant Capacity Reactive Dyes 1500 M.T./year Pigment Emulsion colors 2000 M.T./year Direct Dyes 500 M.T./year Acid Dyes 500 M.T./year Pigment Powders 500 M.T./year Acrylic Binders 3000 M.T./year Copper Pthalocyanines 500 M.T./year
Domestic Market Share An increasing domestic market share i.e. Pigment Emulsion Colors 25%, Acrylic Binders 9% and Reactive Dyes 15% speaks volumes of the customer confidence Sandal’s high quality products have generated. Since 1995, the company has significantly upsized it’s manufacturing and customer support operations to accommodate the expanding customer base.
Sandal Dyestuff Industries (Pvt.) Ltd.Head Office: - Room # 305-308, 2nd floor, The Business Centre, 8/8 New Civil Lines, P.O. Box No. 166, Faisalabad-38000 Tel PABX: - (92-041) 633071-74 Fax: - (92-041) 617940 e-mail:- [email protected], website:- http:// www.jamal.com/sandal
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Production Facility Sandal Dyestuff’s production facility came about after years of careful planning and research. The objective was to make the best use of Sandal’s vast experience of over three decades in both commercial and quality aspects of dyestuffs. To do this well, a continuous transfer of technology took place between Sandal and its multinational partners. Leading consultants in dyestuffs industry from around the world took part in various aspects of the plant’s design and set up. The result has been a state of the art facility doing justice to the vast expertise at hand for its operation. Sandal Dyestuff’s most modern Spray Drying facility has the largest capacity among others in its class in the country, providing both Powder & Non-dusting granulates for all types of Dyes. Sandal Dyestuff’s state of the art facility includes: • Latest P.L.C. based Reverse Osmosis Plant for Dye Purification to achieve
highly pure, salt-free dyes in powder form and in liquid form. • Knauta Mixers (conical screw blenders) for Powder to Powder blending. • A modern inert gas Polymerization Unit, capable of handling Acrylic Co-
polymers of any type. • The only Copper Pthalocyanine Manufacturing unit in the country. • A comprehensive Dispersion Department having horizontal & vertical
Sandmills for achieving a uniform & very fine particle size of upto 0.5 micron level for liquid Pigment Dispersions.
Quality Control Behind Sandal’s phenomenal success over the years is its firm commitment to quality control measures. All production processes with a possible influence on the final product must go through independent quality checks at Sandal’s five fully equipped labs. The extensive quality control set up is run by a team of 45 highly qualified professionals. The Main Quality Control lab works in tandem with four other labs at Sandal Dyestuff. On its own, the QC lab is capable of simulating application processes of dyes, pigments and binders on fabrics and leather on lab scale. Research & Development The Research and Development program at Sandal aims to provide tailor made solutions to its valued customers based on feedback from the marketing and
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after sales teams. The effort includes staying abreast of the latest developments in the international dyestuff industry. Human Resource Development Understanding that dyestuff manufacturing is a precision crafting business that requires high skill and deep knowledge of the processes involved, Sandal Dyestuff has devoted vast resources towards its human resource development effort. From acquisition of technology to staff training, the multi tier human resource development program is aimed at improving all levels of the organization’s hierarchy. Success of this program is already visible in the company’s outstanding performance in recent years.
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Shaffi Chemicals Industries Limited Malik Bagh, Baradari Road, Shahdara, Lahore Tel : - (92-042) 7932001-7 Fax: - (92-042) 7925299 Shaffi Chemicals Industries Limited was incorporated under the
Companies Ordinance 1984 as a public limited company in 1994. Its shares
are quoted at Karachi & Lahore Stock Exchanges. The main activity of the
company is to manufacture and process Di-Octyle-Ortho Phthalates (DOP)
Chemicals.
Product: DOP (Di-Octyle-Ortho Phthalates) Capacity: 17,500 Tons/year
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Sitara Chemical Industries Ltd. is one of the major entities of Sitara Group of Companies. It is a public limited company which was incorporated in 1981. Its first Chlor Alkali plant started commercial production in 1985. The manufacturing plant was set up with the technical collaboration of a reputed Italian equipments company. Its factory is located at 32 KM Faisalabad-Sheikhupura Road. The company has four caustic chlorine plants and also owns/operates two textile spinning units located near its Chemical Complex.
Products Capacity, tpy
• Hydrochloric Acid 240,000 • Caustic Liquid, Solid & Flakes 130,000 • Chlorine Gas 117,000 • Sodium Hypochlorite 33,000 • Chlorine Gas (Liquefied) 10,000 • Bleaching Powder 5,000 • Ammonium Chloride 3,300 • Magnesium Chloride As per order • Calcium Chloride -do- • Ferric Chloride -do- • Hydrated Lime -do- • Nickle Chloride -do- • Phosphoric Acid -do- • Phospho Gypsum -do-
Raw Materials
• Rock Salt • Megnasite Ore • Soda Ash • Calcium Carbonate • Barium Carbonate • Anhydrous Ammonia • Lime Stone • Iron Turning • Sulphuric Acid • Rock Phosphate • Lime Burnt
SITARA CHEMICAL INDUSTRIES LIMITEDP.O Box 442, Faisalabad Tel : (92-041) 689141-5, Fax (92-041) 689147, 689148 e-mail: [email protected] web site:- www.sitara.com.pk
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Tufail Chemical industries Limited is a private company which manufactures Formic acid from sodium formate. The latter is imported from aboard to meet the domestic requirement of Formic acid Products: Capacity
• Formic acid : 5,000 Tons/annum • Sodium Sulphate : 7,500 Tons/annum
Raw Materials:
• Sulphuric Acid • Sodium Formate
TUFAIL CHEMICAL INDUSTRIES LTD., Head Office:-604, Progressive Centre, 30-A, Block-6, P.E.C.H.S, Main Shahra-e-Faisal, Karachi-754000, Tel:-(92-021) 4388204-8, Fax:- (92-021) 4546688 e-mail:- [email protected] Lahore Office: 2nd floor, Rear Block No. 2, Awami Complex, 1-4 Usman Block New Garden Town, Lahore, Tel:-(92-042) 5864963-5835547, Fax :-(92-042) 5835956 e-mail : [email protected] Factory: 7 KM, Raiwind Manga Road, Distt. Kasur (Near Lahore)
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Tri-Pack Films Limited - a joint venture between Mitsubishi Corporation of Japan and Packages Limited of Pakistan, was incorporated as a Public Limited Company on April 29, 1993. The installation of plant and machinery was completed in March 1995, trial production commenced in April, 1995 and commercial production began from June 1995. The plant has the capacity to produce 12,000 tonnes of Biaxially Oriented Polypropylene Film (BOPP) per annum. PRODUCT FEATURES Physical Appearance
BOPP is a pre-stretched plastic film, which can be clear & transparent like glass, with a glossy or matt surface, colored or opaque. It could also be produced in pearled shades or further vacuum coated with metal to provide a silver metalized surface. It is most commonly used for the wrapping and packing of consumer goods like biscuits, processed food, confectionery textile, hosiery & garments and cigarettes in transparent or printed form.
Chemical Composition The film is made mainly from the resin of Polypropylene, which itself is a derivative from the downstream processing of crude oil.
Protective and Barrier properties In addition to enhancing the presentation of products wrapped in it, BOPP also improves the shelf life of food and other products by offering a reasonable barrier to the permeation of dust, moisture, gas and aroma.
Heat Sealability It heat- seals at a relatively low temperature thus saving users/manufacturers energy costs while facilitating higher production speeds.
TRI-PACK Films Limited 1st floor, G.D. Arcade, Fazal-ul-Haq Road, 73-E, Blue Area, Islamabad Tel: (92-051) 2273135, 2273907-8, Fax:- (92-051) 2273136
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BOPP HISTORY AND BACKGROUND BOPP was introduced to the world sometimes in mid sixties as a transparent film, which could be mass-produced at a relatively low cost. The versatility it offered in Protective and Barrier properties attracted keen interest among user groups. Rapid growth of this interest among a variety of users for the product resulted in fast growth of technologies to develop newer uses of this film. At the same time technological advances in the ensuing period also contributed to the progressive reduction in costs. This allowed the product to quickly become a much cheaper alternate to `Cellophane' which has since been replaced by BOPP worldwide in most of its age old applications, such as over wrap for printed packages, lamination and flexible pouches. Raw Material (H.S. CODE 3902.1000 & 3902.3000) Raw material for BOPP film are polypropylene resin of homopolymers, co-Polymers and additives of different grades and are 100 % imported from various countries of Far Eastern, Europe, Middle East and Australia. IMPORT TARIFF HOMOPOLYMER (H.S. CODE 3902. 1000) CO-POLYMERS (H.S. CODE 3902.3000) 1. Custom Duty 20% of Import Value 2. Sales Tax 20% of Duty Paid Value BOPP FILM (H.S. CODE 3920.2010) 1. Custom Duty 30% of import value 2. Sales Tax 20% of Duty Paid Value CORPORATE SET-UP Tri Pack Films Limited, a Public Limited Company is a joint venture between Mitsubishi Corporation of Japan and Packages Limited. It is listed on all the stock exchanges of Pakistan. The registered office of the company is in Karachi. Factory is located in Hattar Industrial estate. A team of professionals to manage the technical, marketing, commercial and financial functions runs the company.
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CAPITAL STRUCTURE The authorized capital of the company is Rs 300 million divided into 30 million ordinary shares of Rs. 10 each. In this, Packages Limited has 33%, Mitsubishi Corporation has 25%, and general public has 42%. THE SPONSORS PACKAGES GROUP The Packages Group is among Pakistan's larger industrial groups. Its business interests include Packages Limited, International General Insurance Company of Pakistan Limited, Tetra Pak Pakistan Limited (a joint venture with Tetra Pak International), Milkpak Limited (a joint venture with Nestle S.A.), and First International Investment Bank Limited (a joint venture with International Finance Corporation and American Express Bank Limited). MITSUBISHI CORPORATION (MTCL)." After World War II, MTCL was dissolved on the order of General Headquarters of the Allied Powers in 1947, splitting into many independent companies. In 1950, in the process of liquidation, MTCL established a second company named' Kowa Jitsagyo Co., which was renamed "Mitsubishi Corporation" in 1950. OPERATIONS • Mitsubishi Corporation is one of Japan's leading general trading companies
and pursues a diverse range of activities worldwide through its global network of offices and subsidiaries.
• Mitsubishi Corporation is a public limited company in Japan, having it's registered office at 6-3, Marunouchi 2-chome, Chiyodaku, Tokyo, Japan
• Mitsubishi Corporation has the following major business groups, each handling millions of transactions, worldwide:
a) Information Systems & Services b) Fuels c) Metals d) Machinery e) Chemicals f) Foods
g) Textiles
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Textile Chemical Industries (TCI), an ISO 9001:2000 certified firm, with an annual turnover of approximately Rupees 100 Million was established in 1961. The main objective of its establishment was to cater to the textile industry with locally manufactured chemicals in order to save the foreign exchange and also to earn foreign exchange for the country through export. Its products are being exported to Sri Lanka, United Arab Emirates and Bangladesh.
Textile Chemical Industries has the unique distinction of having a complete technology development and its own Research & Development facilities under one roof. This advantage is clearly demonstrated by its leadership in the field of manufacturing auxiliaries specially for Pigment Printing, where based on this technology it has succeeded in developing and marketing Formaldehyde-Free Binder used in pigment Printing in textile industry.
Textile Chemical Industries intends to build on this technological advantage in the coming years to further strengthen its leading role in the market. The company is also aware of its environmental obligations and is fully complying with the Effluent Standards of the EPA by consistent in-house testing and monitoring of its effluents. Textile Chemical Industries won the selection of Dutch Government's approval as the role model for environmental Friendly Manufacturing Procedures. The Company is under process of getting.1SO 14000 certified.
Raw Materials: • Acrylic Monomers • Vinyl Acetate Monomers • Styrene Monomers • Emulsifiers • Buffers • Humectants Products: • Bleaching Auxiliaries • Dyeing Auxiliaries • Printing Auxiliaries • Finishing Auxiliaries • Textile Pretreatment Auxiliaries Capacity:- 200 to 250 tons per month.
Textile Chemical Industries I - 45, S.I.T.E. Karachi 75700 Tel:- (92-21) 2562242 Fax:- (92-21) 2561573
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Zahabiya Chemical Industries is a sole proprietary concern, situated in the Karachi Export Processing Zone, located at the sea coast of Karachi. Zahabiya is acknowledged and honoured as the renowned manufacturers of Adhesives, Sealants, Construction Chemicals, Water Proofing and Other Compounds fulfilling International Standards of 21st Century's requirements of Non Toxic and Non Hazardous "HUMAN FRIENDLY" products instead of traditional Toxic Environment polluting products. The products offered are backed with our 30 years' of manufacturing experience and expertise in our specialised field. Zahabiya products are manufactured, keeping in view the general climatic conditions and especially for tropical climatic zones. Zahabiya's Field of Activity 1. Wide range of Civil Construction related cement admixtures and protective
products starting from plinth level up to the finishing stage, especially exterior surface coatings for abnormal climatic zones.
2. Engineering related Adhesives, Sealants, Water Proofing Compounds, Rust Protective coatings and other products.
3. Products meant for Air Conditioning & Refrigeration including HVACR, Deep Freezing and Central A/C Ducting manufacturing and assembling.
4. Tin, Metal Can, Drum/Barrel, Metallic Collapsible Tubes Lining & Sealing Compounds.
5. Automobile manufacturing/assembling related Adhesives, Sealants Rust Proofing and other compounds especially Sound Deading compound and cavity sealers.
6. Adhesives, Sealants and Compounds for all types of Automotive & Industrial Filters.
7. Adhesives, Glues & Lacquers for all type of Paper/Board Packaging/Manufacturing including Heat-seal coatings for blister packaging & lamination and for Wood Working/Furniture making Industries.
8. Wall Paper adhesives, Tile Fixing compounds and Carpet Backing compounds. 9. Fire Resistive, Fire Retardant coatings and compounds.
Zahabiya Chemical Industries Plot 14, Sector B-VIII Export Processing Zone, Karachi-75150 Tel:-(92-021) 5082323-4 Fax:-(92-021) 5082325, 4960462 e-mail:- [email protected] & [email protected] web site:- www.zahabiya.com
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10. Other Tailor Made products on request, concerned to our classified field of manufacturing.
The above details can also be procured from the web site: www.zahabiya.com Besides manufacturing specialty products, the company has got the facilities of applications of products, under its guidance for the perfection of all jobs executed. Its authorised teams are available to execute all jobs with the entire perfection and guarantee for satisfaction of all clients with economy as well. Interestingly, all the products have been indigenously developed keeping in view the traditional climatic condition and especially for tropical atmospheric conditions of our region choosing best raw materials from throughout the world. Zahabiya”s products have been successfully and economically used in numerous Houses, Commercial, Industrial Institutional complexes/projects throughout Pakistan from Karachi to Hunza, including Defense Departments. The products are also being exported to Sri Lanka, Bangladesh and Middle East. From the experience, it can fervently be said that all the products do perform the functions they are meant for, even perform better when compared to many other similar products including multinational brands, due to their designing based on the company’s vast practical experience. It may be informed that Zahabiya Chemical Industries is purely Pakistani in origin, all associated with it feel proud not to be assisted by any foreign collaborator and are pleased to mention here that it is the First Pakistani industry to get ISO 9002 certification "as the manufacturers and exporters of industrial adhesives, sealants & construction chemicals (water proofing compounds)".The Company is registered with Engineer-in-Chief”s Branch, Military Engineering Services, Pakistan. The company is procuring various raw materials including many kinds of Resins, Elastomers, Copolymers, Solvents, Pigments, Additives, Preservatives and essential chemicals from best sources throughout the world. The fillers and extenders, which are of Pakistan origin, are being brought in Karachi Export Processing Zone from local market. Presently, Zahabiya is having the manufacturing capacity of 50 Metric Tons per month on single shift basis on mixed consignment manufacturing. The capacity of course varies if the same type of product is manufactured continuously being at higher side.
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Annexure-IX
GOVERNMENT OF PAKISTAN MINISTRY OF INDUSTRIES & PRODUCTION
FERTILIZER POLICY 2001 (Revised on 29-8-2001)
Whereas the Fertilizer Policy announced by the Government of Pakistan in 1989 was successful, assuring reasonable prices of fertilizer to farmers below import price and in bringing substantive investment to enhance domestic production and has completed its stipulated time frame, and whereas it is felt that further investment in fertilizer production is required keeping in view the importance of fertilizers in increasing the country's agricultural output, a need is felt to review and update the policy to encourage new and existing investors to come forward to invest. Accordingly, the following policy is adopted, after due authorization by the Cabinet, with effect from 1st July, 2001:
1. EXISTING PLANTS:
1.1 a) To enable local fertilizer price to stay below imported fertilizer prices, the escalation of existing feed gas prices will be as follows:
DATE ANNUAL INCREASE%
1-7-2001 Nil 1-7-2002 5.0 1-7-2003 7.5 1-7-2004 10.0 1-7-2005 12.5 1-7-2006 15.0
b) Thereafter, the price is to be $ 1.10/MMBTU or prevailing Middle East price determined in accordance with 2.1.2 whichever is higher, only for those existing investors who bring in new plant (minimum Capacity 0.5 MT/year) under clause 2.
c) Fuel gas price will be the same as for other industrial consumers in the country. Fuel gas will continue to be defined as gas which is used for generation of electricity and steam and for usage in housing colonies.
d) Concessional feed gas allowed under the 1989 Fertilizer Policy to
companies that undertook expansion will be continued until their 10 year period is exhausted. Thereafter the feed gas price will be same as in 1.1(a) and (b).
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2. NEW INVESTMENT:
2.1 NATURAL GAS 2.1.1 It is the intent of this policy to provide investors in new fertilizer plants in
Pakistan a gas price that enables them to compete in the domestic market with fertilizer exporters of the Middle East so that indigenous production is able to support the agricultural sector's requirement by fulfilling fertilizer demand.
2.1.2 The price of feed gas will be the Middle Eastern Price prevailing on the
date of signing of the GSA or $ 0.77/MMBTU which ever is higher (less the discount of 10% mentioned in 2.1.3 ) and shall remain fixed at such price till the expiry of 10 years from the date of commissioning. This price will be determined by the Gas Regulatory Authority of Pakistan, from the published international data, in dollar terms, on the principle of general parity with the price prevailing in Middle East.
2.1.3 A discount of 10% will be allowed on such determined price as at 2.1.2 to facilitate new investment. The discount price i.e. the price fixed as per 2.1.2 and 2.1.3 will remain fixed, for a period of 10 years from the date of commissioning, in dollar terms. The rupee parity will be determined as defined in para 2.1.6. This price will be inclusive of all taxes, duties, levies, fees and charges whatsoever, whether local, federal or provincial. However, GST or similar duty may be imposed on such determined price provided it is adjusted against GST, payable on the fertilizer produced.
2.1.4 The investor may avail this opportunity to sign GSA (Gas Sales Agreement) as detailed in 2.1.2 & 2.1.3 by 30th June, 2005.
2.1.5 Fuel gas prices shall continue to be treated as at par with other Industrial consumers.
2.1.6 For billing purposes, the price fixed in dollars will be calculated in Pak Rupees, at the average interbank rate. The average interbank rate shall be fixed twice in a year i.e. on 1st January, and 1st July, based on the average of the previous six months daily interbank rate.
2.1.7 Gas Companies will build adequate safeguards in the GSA to ensure that the investor proceeds without delay in installing the plant after signing of the GSA, so as not to pre-empt the use of available gas to another investor. The Government will ensure that Gas Companies do not cause undue delays in signing of GSA.
2.1.8 Gas will be allocated to new fertilizer, plants on the principle of first come, first served. Recognizing the expected growth in fertilizer demand, the importance of steady supply and the suitability of Mari Gas production, the government has decided to dedicate the shallow
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reservoir of Mari gas field to the Fertilizer Industry while the new deep reservoir is to be developed for power sector as it is suitable for power generation.
2.2 IMPORT AND LOCAL MANUFACTURE OF PLANT:
2.2.1 The Government of Pakistan encourages investment and a number of concessions are available as per the Investment Policy and applicable Tariff Structure. Investors may avail these concessions with reference to import and local manufacture of plant, equipment and machinery, including deferred duty payable through customs debentures.
2.3 IMPORT OF SECOND HAND PLANT:
2.3.1 Investors will be allowed to relocate second hand plant, equipment and machinery, with the same concession/exemption as applicable to new plants.
2.4 EXPANSION / BMR / DE-BOTTLENECKING:
2.4.1 If an investor undertakes an expansion, major BMR or de-bottlenecking of an existing plant, which results in increase in the production capacity of the plant, such additional feed gas shall be treated at par with a new plant for 5 years for purposes of concessions /exemptions outlined in 2.1.2,2.1.3,2.1.4,2.1.5 and 2.2.1,2.2.2 and2.3.
2.5 EQUAL TREATMENT
All the fertilizer producers, domestic and foreign, public and private will be treated equally in commercial, fiscal, corporate and contractual matters. 3. PHOSPHATIC FERTILIZER:
3.1 Considering the importance of Phosphatic Fertilizer, the Government plans to continue to encourage its local production. For the said purpose, the following measures shall be taken:
3.1.1 Rock phosphate and phosphoric acid importable by manufacturers of fertilizer shall remain importable free of duty and sales tax.
4. N.P.K.
4.1.1 All raw materials required for NPK production i.e Di-Ammonia Phosphate (DAP), Mono-Ammonia Phosphate (MAP), Tripple Super Phosphate (TSP), MOP, SOP and micro nutrients are allowed to be imported free of duties & taxes.
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4.1.2 Import and local manufacture of plant, equipment and machinery shall be treated as per Section 2.2.1 for concessions and exemptions.
5. GENERAL:
5.1 Selling price of fertilizer shall remain deregulated on the understanding that while manufacturers will allow free market forces to prevail they will pass the benefits in the form of lower price of fertilizer to the farmers. In order to ensure this objective is achieved a Committee will be set up and shall meet as and when required, but at least on a regular quarterly basis and take appropriate steps as necessary. The Committee will be headed by the Minister for Industries &. Production and will include Minister for Food, Agriculture, Livestock as well as a senior representative from the Ministry of Finance.
5.2 Withholding tax collected at the time of import of fertilizer, shall be adjusted against assessed income tax of the year during which such import takes place, in case the fertilizer is imported by a manufacturer of fertilizer.
APPENDIX – I
SSCCOOPPEE OOFF CCHHEEMMIICCAALL SSEECCTTOORR DDEEVVEELLOOPPMMEENNTT IINN PPAAKKIISSTTAANN
WITH SPECIAL REFERENCE TO PETROCHEMICALS
Dr. FARRUKH S.M. AKHTAR Vice President Projects Yanbu Investment Company Yanbu, Saudi Arabia
April 5, 2002
Industrialization is the only economic option of Pakistan. Industrialization has not
been pursued as organized sector. Sporadic emergence of industry in Pakistan has
been primarily based on convenience (fertilizer, cement, textile, vegetable oil are
typical examples). Support industry has mushroom growth. Although very valuable
resource but has lacked once again organized structure. Introduction of quality
function was never conceived. This along with the lack of other ingredients industrial
sector never took off.
There is a strong need to take up this option gainfully. Among others chemical sector is the most important. I am privileged to share with you the scope of strategic development of chemicals with special reference to petrochemicals. In essence it deals with the major task facing all economies (including Pakistan) in their pursuit of further growth and development. Moving downstream aims at the further development of the economy as higher added value products and or services will be produced which will enhance the gross domestic product of Pakistan or region with subsequent impact on the standard of living. However, before we examine opportunities mainly in the petrochemical industry in our region of the world; let us spare few moments to look at the oil-petrochemical industry background, locate petrochemicals within the chemical industry, and examine some of the main features of the petrochemical industry.
Oil – petrochemical industry background Petroleum and gas have traditionally been used primarily for energy and this situation is not likely to change in the near or medium term. Therefore, it is to be expected that hydrocarbon resource prices will reflect primarily energy market developments. Between 90-93% of oil and gas are consumed for energy purposes. Petrochemicals manufacturing absorb the balance of the world’s oil and gas supplies. Although it is small percent share, however, it is a very important source of demand for hydrocarbon resources due to its major impact on the economy as a whole. Oil and gas supplies are known to be finite and non-renewable. At present rates of utilization world is not likely to face any major crises in near future as is evident from the production and consumption statistics on oil and natural gas presented below:
Oil (million barrels) 1988 2003 2008
Production 24391 27701 30624 Consumption 24689 27701 30624
Gas (billion cubic meter)
1988 2003 2008
Production 2439 2842 3198 Consumption 2419 2842 3198 Out of 24391 million barrels, globally produced, Pakistan share was 21 million barrels of oil in 1998. Pakistan’s share of oil & gas in 1998 is given below: Crude Oil (million barrels) 1998 Production
21
Consumption 52 Imported 31
Natural Gas (million CFt) Production
699,709
Consumption 607,891 Traditionally, the petrochemical industry adapted on the one hand to the situation created by the oil refining and gas processing and on the other hand to the market. Oil fields were generally far away from the main consumption areas. It was considered simpler and cheaper to ship the crude to the main consuming markets and built the refineries in the consumer areas. Basic petrochemical plants with the exception of USA were usually situated near the refineries. End product manufacturing plants, depending upon the local circumstances, are placed somewhere between the basic petrochemical plants and the markets. The result of this approach was that the majority of the hydrocarbons produced in the developing countries was shipped to the developed countries without major processing. The situation prevailed prior to 1973 as exploration, production and utilization of oil & gas was determined by multinationals based in the industrialized countries. The price of oil was low and the pattern of ownership was such that little capital was generated to affect industrial restructuring & further processing of these hydrocarbon resources at producing countries.
In line with that, United States, Japan and Western Europe were the major producers
and consumers of petrochemicals.
After the oil price corrections of the seventies the oil based economies emerged in a
privileged position to produce petrochemicals as associated gas resources which were
largely flared and wasted in the past were recovered, gathered and put to use. The
accumulation of large financial surpluses facilitated the establishment of the industry
and the substantial infrastructure needed for it.
These developments were part of the strategy adopted by the oil producers as they became aware of the risks of accumulating fixed-income-yielding assets in an inflationary atmosphere. Therefore, they were no longer satisfied with a role as residual suppliers of the world oil requirements without playing an effective role in the downstream industry. Concurrently with realization of these developments other regions than the three main industrial regions of the world, started to become important players in the petrochemical industry. The Far East, Latin America, Indian subcontinent, CIS countries as well as the Middle East entered the arena and decreased the share dominance of main industrial regions. It is expected that this trend is to continue in the future and the share of main industrial regions will become substantially lower.
Petrochemicals within the chemical industry All petrochemicals have a common base as they are derived from the processing of crude oil and/or natural gas completely or partially. Other chemicals, which are not of petrochemical origin, also play major role in the petrochemical industry the most notable of them is chlorine, its production is highly energy intensive and can be produced competitively based on energy from natural gas. The location of the petrochemical industry in the whole chemical industry can be defined in many different ways. There is no universal understanding either of the exact meaning of the petrochemistry, or of the method of the classification to be adopted. However, the chemical industry can be classified broadly into:-
- Heavy or commodity chemicals - Specialty & fine chemicals
The heavy or commodity chemicals can further be classified into:
- Organic
- Inorganic Specialty and fine chemicals are produced usually in small quantities, however, fine chemicals are sold based on specifications related to their chemical composition while specialty chemicals are sold based on performance. The petrochemical industry can be identified mainly with the heavy organic group. Substantial part of this group is certainly petrochemistry today. The boundaries between commodity chemicals and specialty & fine chemicals are somewhat blurred. Depending on the stage of evolution the specific chemicals as they move in many cases from one category to another during their development. A separate scope paper would be needed on inorganic chemicals. At times the boundaries between organic and inorganic chemicals can be blurred also. A clear example of that is ammonia, which is an inorganic chemical. However, by its connection to the fertilizer production, ammonia manufacturing can be classified within the organic chemical industry and because of its process technology and feedstock it is often included in the petrochemical field. Some organic compounds like plasticizers, surface-active agents and more complex intermediates for the manufacture of the pharmaceutical and plant protection products, although they are specialty & fine chemicals are often grouped with the petrochemicals. The main features of the petrochemical industry The petrochemical industry is characterized with a number of main features as outlined below:-
• Technology intensive • Capital intensive • Energy intensive • Scale intensive • Migratory • Dominated by multinational
It should be noted that the larger the use of domestic resources in processing activity, the higher the value added contribution to hydrocarbon resources. Petrochemical products through their life of development follow in general the product cycle theory. Typically the product demand:-
• Increases after initial introductory period • Then slows down during product maturity
Concurrently:-
• Number of producers increases rapidly (subject to the entry barrier restrictions)
• Then slows down In turn prices:-
• Decline at first • At mature stage tend to level off
The price decline is combined effect of:-
• Decreased costs • Economies of scale • Learning curve-operating experience • Increased competition
During early stages of product life cycle generally one country and or one company is the only producer and hence meets domestic and export demand. Such situation is often due to technology position of that specific company. The trend toward migration of petrochemical industry near hydrocarbon resources is the result of interaction of a rise in feed stock prices and decline in unit capital costs of mature petrochemical products. This factor is very important to identifying investment opportunities in downstream industries in the Gulf region. Other wise there is a substantial regional demand for downstream products. Such industries can become viable even though they may have lower competitive edge over producers in other regions. One of the main features of the petrochemical industry is its technology dependence. Accordingly it requires substantial resources committed to research, product development and technical services. This need is less emphasized in the case of well established commodity products as there has been no radical change in basic technologies/processes, like steam cracking catalytic reforming etc although substantial improvements were achieved. However, by moving more downstream in areas of commodity performance products (e.g. plastics) and in specialty and fine
chemicals technologies are highly guarded and continuously improved upon. Therefore, having R&D capability or access to technical advances is a key pre-requisite to moving downstream in these fields. A good regional example of that is SABIC (Saudi Basic Industries Corporation) which is investing in this important area and hopefully other regional players will follow suit. The following indicative table shows the added value for moving downstream. As it can be seen that the hydrocarbon resources in a barrel of oil can increase in value in a dramatic way through further processing downstream. However, the level of effort in terms of capital expenditure, technology acquisition and commitment of resources for further development needed to generate adequate returns should not be under estimated. Comparative added value
$ per tonne
Crude Oil 100-140
Liquefied and Compressed natural gas 25-60
Commodity chemicals 150-1500
Specialty & fine chemicals 1000-20000
The issues related to the availability of market and its location for such down stream products has to be considered also.
Petrochemicals and opportunities downstream Now having set the stage for why go downstream in petrochemicals, it is reasonable to examine the basic building blocks. Before we do that let us have a quick view of consumption pattern of petrochemicals also world consumed around 447 million tons of petrochemicals during 1998 (out of which 261 thousand tons were consumed in Pakistan).
The consumption of major petrochemicals in the world is Million tones
actual Forecast 1998 2000 2003 2008 Aromatics 56 59 65 76 Olefins 159 164 173 190 Plastics 115 127 147 181 Elastomers 6 6 7 9 Fibres 22 23 24 26 Formaldehyde resins 9 10 11 12 Key intermediates 80 85 92 110
Total 447 475 519 604
80% of all organic chemicals production is attributed to 5 basic building blocks of petrochemical industry and those are:- Ethylene Propylene Butadiene Aromatics (benzene, toluene & xylene) Methanol The opportunities offered by each “building block” are presented hereafter.
Ethylene
1988 (000 tonnes)
World Capacity Production Consumption
91,802 79,070 79,014 Opportunity Ethylene
consumed %
End use
Ldpe and Lldpe 30 Film and moulding Products
Hdpe 22 Film and molding products
EDC 15 Vinyl chloride
Ethylene oxide 12 Ethylene glycol & Non-ionic surface active agents
Ethylbenzene 7 Styrene
Alpha olefins 3 Co-polymers, detergents
Vinyl acetate 2 Polyvinyl emulsion & resins polyvinyl alcohol
Acetaldehyde 2 Acetic acid & acetic anhydride
Propylene
1988 (000 tonnes)
World Capacity Production Consumption
55,834 47,389 47,475 Opportunity Propylene
consumed %
End use
Polypropylene 52 Fibres & filaments, film & molding products
Acrylonitrile 12 Acrylic fibres, abs & san
Oxo chemicals 9 Various aldehydes & alcohols
Propylene oxide 8 Polyurethane polyols, propylene glycol
Cumene 6 Phenol/acetone
Oligomers 4 Dodecyl benzene/ phenol, isodecyl alcohol
Acrylic acid 3 Ethyl, methyl, butyl & other acrylates
Isopropanol 3 Solvent, fuel, acetone
Allyl chloride 1 Epichlorohydrin & allyl alcohol
Butadiene
1988 (000 tonnes)
World Capacity Production Consumption
9,023 8,044 8,044
Opportunity Butadiene consumed %
End use
SBR & latex 37 Tires, hosing
Polybutadiene 24 Rubber and plastics
SB copolymer latex 10 Plastics and rubber
ABS resin 9 Plastics
Adiponitrile/hmda 5 Nylon 66
Nitrile rubber 3 elastomers
Benzene
1988 (000 tonnes)
World Capacity Production Consumption
38,302 28,388 28,388
A- 83% of benzene is consumed by:-
Ethylbenzene Styrene
Cumene Phenol & acetone
Cyclohexane Nylon fibres & plastics
B - Rest of benzene is consumed by:- Opportunity Benzene
consumed %
End use
Nitrobezene 5 Aniline, benzidine, dyes, quinoline, azobenzene
Alkylbenzene 3 Detergents
Chlorobenzene 3
Orth & para Chloronitrobenzene
Maleic anhydride 3 Unsaturated polyester resin
Toluene
1988 (000 tonnes)
World Capacity Production Consumption
21,005 14,279 14,280
Opportunity Toluene consumed %
End use
Benzene 50
Para - xylene 21 PTA and DMT
Solvent 13
Thiodiphenol 9 Flame retardant, antioxidant
Toluene diisocynate 6 Polyurethane foams & coatings
Benzoic acid 1 Preservative Plasticizer
Xylenes
a- para xylene
1988 (000 tonnes)
World Capacity Production Consumption
17,151 13,191 13,191
Opportunity Para xylene consumed %
End use
PTA 79
DMT 20
Both are used to manufacture polyester fibre, films and engineering resins
b – Ortho xylene
1988 (000 tonnes)
World Capacity Production Consumption
3,604 2,995 2,995
Opportunity Ortho xylene consumed %
End use
Phthalic anhydride 96 Plasticizers, USP alkyd resins
Methanol
1988 (000 tonnes)
World Capacity Production Consumption
35,342 25,674 25,674
Opportunity Methanol consumed %
End use
Formaldehyde 33 Urea & phenolic resins
MTBE 27 Octane booster
Acetic acid 7 Vinyl acetate, cellulose acetate
DMT 4 PET
Chloromethane 4 Silicones, refrigerant, catalyst carrier, etc
Methylamine 3 Dyes, pesticides, surface active-agent
Methylmethacrylate 3 Acrylic sheets, surface coatings
Methylchloride 2 Silicones
The above scope analysis just highlights the main building blocks of the petrochemical
industry and the main opportunities downstream. From those, there are hundreds and
even thousands of alternatives for moving downstream.
Pakistan has to construct a serious road map for the development of chemical sector and has to develop a long-range plan at least spanned over 50 to 75 years. This would need stratification to medium term spans of 7 to 10 years. GOP has to lay the foundation of organized chemical sector development. Each product or project has to be vertically or horizontally integrated as a brick or like organ gram. GOP must based on national parameters (provinces are sub sets of nation) enlist all possible downstream opportunities. This can be performed by gainfully employing Appendix-1 and other tools as structured Brainstorming, scripted flowcharts, FMEA and so on. GOP should be instrumental in chalking out the road maps for selection parameters and typical data base s required as listed in Appendix-1. However, the identification of viable downstream investment opportunity is just the beginning rather the end for moving down stream as it will be up to the investor to evaluate the available opportunities and the following factors has to be assessed and evaluated: The growth rates, Supply and demand analysis, Areas of growth.
Targeted markets, Technology availability, Financial/economic viability If all the ingredients are satisfied then we have the right opportunities, and let GOP embark on promoting organized industrial sector. Moving downstream, although is a main strategic objective for emerging economies, must be done in an economically feasible way, which will generate adequate returns on investment that can be recycled in the economy to generate further growth.
ATTACHMENT – I PROJECT IDENTIFICATION
Scope: The scope of project identification process begins with the preparation of the “Shopping list” of ideas (project/product) and ends at a project profile (sometimes depending on the details is called pre-investment pre-feasibility study). As a policy the ‘ideas shopping list’ is tested against selection parameters. This list of selection parameters could vary from situation to situation. Some of the parameters are listed below.
Selection Parameters i) Availability of basic raw materials (mainly crude oil, primary
petrochemicals, minerals, etc.) ii) Assessment will be made, based on Pakistan and world-wide usage and
trends, of selected products which are manufactured in relatively large volumes, and which are expected to enjoy long-term high growth patterns.
iii) These products should be suitable for production in relatively large
world-scale plants ($50MM or more in investment) that are capital and/or energy-intensive, rather than labor-intensive.
iv) In most cases, the products will be made utilizing the most modern
technology so as to remain competitive for the long-term, i.e. no obsolete chemistry or inefficient production methods.
v) The products selected should have good export potential, particularly in
early years of operation.
vi) Or the products selected are import substitution oriented.
vii) Total output should not unduly disrupt the world market place or overall patterns of international trade in order to maintain world price stability, while at the same time satisfying Pakistan requirements partially or totally.
This parameter list is not exhaustive and may be adjusted as required.
Preparation of shopping List: Any project or investment opportunity starts from an idea regarding producing a product. The idea could be naïve but it should not be disregarded at an earlier stage of its conception. A seemingly “naïve idea” could result in a sound investment opportunity. This stage of identifying of an idea or naming a product is the most time consuming and demands rational thinking process. Despite the fact that there could be a creative and innovative process involved in identifying the idea but the conventional method proved its worth time and again. The basic idea may originate during discussions with company management as a result of long range planning, government, consultants, machinery manufacturers and suppliers, process know-how developers and suppliers or from any number of primary and secondary sources like newspapers, technical journals, conferences, seminars, etc. This method yields sporadic results and by no mean is inferior to other methods. In other method, one could adopt “The Bird Approach” or The Squirrel Approach. This analogy is very opposite to those charts which list feedstock’s, primary products, intermediates specialty and performance products and vice versa. Both Bird and Squirrel approaches are described below.
The Bird Approach Start with the entire world – scan it for opportunities to seize upon, trying to make the best of what you find. You will resemble a bird searching for a branch to land on a large tree. You will see more opportunities that you can think of. You will have an almost unlimited choice. But your decision, because you cannot stay up in the air forever, is likely to be arbitrary, and because arbitrary, it will be risky forever, is likely to be arbitrary, and because arbitrary, it will be risky.
The Squirrel Approach Start with yourself and your organization – where you are with the skills, knowledge, expertise you have – and what you can do best. In this approach you will resemble a squirrel climbing that same large tree. But this time you are starting from the trunk, from familiar territory, working your way up cautiously, tree fork by tree fork, deciding on each fork the branch that suits you best. You will only have one or two alternatives to choose from at a time – but your decision, because it is made on limited number of opportunities, is likely to be more informed and less risky. In contrast with the bird who makes single big decision, the squirrel makes many small ones. The squirrel may never become aware of some of the opportunities the bird sees, but he is more likely to know where he is going.
However, by employing any or all approaches you would be able to generate, a good shopping list. Screening Process. Once shopping list is generated then it is subjected to screening process. This process begins by establishing the necessary input data that have a great degree of credibility. This requires consultation with database. This process of data review/examination should not be short circuited because of ill-conceived deadlines. The typical data bases required are: - World and regional producing industries, locations and their
capacities, operating rates, etc.
- World and regional implementation and under planning projects,
locations, nameplate capacities. - Regional licences issued, owners, capacities, product states and
status.
- Feed stocks, auxiliary raw materials, prices, sources, availability, selected products grades, specification, historical prices, channels.
- Uses and users
- World and regional import and export data.
- Technologies, Licensors and Technology Suppliers.
- Capital cost estimates, sizes
- Operating cost estimates
- Utilities, consumption, etc.
In reaching a decision on each of these tests, the data gathered at a conceptual stage are
valuable. The evaluation of the project alternative is frequently disturbed because the data necessarily projected are not always ‘accurate’. Actually only the DEGREE of accuracy is at stake for all management decisions or to a large extent based upon projections.
The evaluation of various aspects of an alternative requires the combined judgment of several cross-functional individuals. Top management, for example, is in the best position to determine whether a project is compatible with certain (e.g. the given country or the company) short term and long range developmental plans. The selection of a project for implementation unquestionably appears to be one of the most strategic and significant decision in the entire planning effort.
Based on the above screening analysis, a reasonable project profile could be
developed. Such a profile may briefly contain information on the following aspects:
i) Description of products ii) Capital cost estimate iii) Feedstock’s, raw materials, consumption/unit iv) Utilities, consumption/unit v) Technology, Technology Suppliers vi) Market and end uses of products vii) Some economic indicators
The screened project profiles showing positive indicators would prove to be saleable documents and is the end of project identification study.