Ghani Chemical Industries Limited (PSX: GCIL), a leading manufacturer of industrial and medical gases, has announced its plans to reduce its power costs and increase its market share in the southern region of the country.
According to a stock filing at Pakistan Stock Exchange (PSX) on Monday, the company’s board of directors has decided to establish a 7 MW coal power plant at a cost of $5-5.5 million. The plant will use a mix of local and imported coal and will be located in Port Qasim or nearby.
The plant will supply power to the company’s air separation unit (ASU) plants in Port Qasim, which produce oxygen, nitrogen and argon gases. The company expects to save 45-50% of its power costs by using coal instead of grid electricity.
The board has also decided to relocate one of its two 110TPD ASU plants from Phool Nagar to a suitable location in the southern region, after the installation and commissioning of its new ASU plant in Hattar. The relocation is aimed at meeting the increased demand for medical and industrial gases in the south, as well as providing a backup for its other plants in the country.
