KARACHI: Ghani Chemical Industries Limited (GCIL), a manufacturer of medical and industrial gases and chemicals, said on Monday it will set up a $5-5.5 million coal power plant to reduce its electricity costs and gain a competitive edge.
The company in a filing to the Pakistan Stock Exchange (PSX) said that it has decided to set up a 7 megawatt (MW) coal power plant based on a mix of local and imported coal at Port Qasim or any other nearby suitable location.
The plant is expected to save 45 percent to 50 percent power cost of its Air Separation Unit (ASU) plants installed at Port Qasim in Karachi. “To overcome the high utility prices issue (being the only raw material for manufacturing of medical and industrial gases), it has been decided to set up a 7MW coal power plant based on a mix of local and imported coal at Port Qasim and/or any other nearby suitable location at a projected cost of $5-5.5 million,” the company said.
“This will also provide a strong competitive advantage as power is a major element in production cost.”
GCIL also said that it will relocate one of its 110 tons per day (TPD) ASU plants installed at Phool Nagar, Punjab to the southern region of the country, to meet the additional requirements of medical and industrial gases and to also create a backup for its other plants in the country. The relocation will be done after the installation and commissioning of the Hattar Plant.
