ICI Pakistan has announced it is to proceed with a Rs 1,283 million ($41.5 million) rights issue to finance the construction of a polyester fibre plant. ICI is to decide by mid-1995 whether to proceed with a second scheme, to make raw materials for the plant.
The rights issue to existing shareholders, will provide part of the financing for an Rs 3,200 million ($104 million) project to build a polyester fibre plant at Port Qassim. The issue is scheduled to be completed in August. The board of the UK’s ICI is the beneficial owner of 61.5 per cent of the local subsidiary.
ICI has signed a technology agreement with the US’ Dupont. The local Descon Engineering began work on a turnkey contract to build the 50,000- tonne-a-year polyester fibre plant in Sheikhapura, Punjab (MEED 24:6:94). The plant is due for completion in 1996.
The ICI board is also considering whether to proceed with a plant to make the polyester fibre ingredient, purified terephthalic acid (PTA), at Port Qassim. It would be Pakistan’s first PTA plant and most of its output will be for the local market.
The US’ Foster Wheeler has been appointed to undertake preliminary designs for the 380,000-tonne-a-year PTA plant that will cost about Rs 13,000 million ($422 million). It will be financed by a further large rights issue and a large range of other borrowings, ICI says.