Engro Polymer & Chemicals Limited (EPCL), a subsidiary of Engro Corporation, has officially launched the commercial operations of its hydrogen peroxide plant, marking a significant step in its expansion strategy.
The Rs 11.7 billion ($42 million) project was announced in a notice sent to the Pakistan Stock Exchange (PSX) on Monday.
The new plant, which boasts an annual capacity of 28,000 tons, incorporates advanced Chematur technology. It is expected to reduce Pakistan’s reliance on imported hydrogen peroxide, enabling import substitution worth approximately USD 11 million, and contributing to strengthening the country’s industrial base.
EPCL plans to manufacture and market its hydrogen peroxide solution, PureOxide, through its wholly owned subsidiary, Engro Peroxide (Private) Limited. As the only hydrogen peroxide producer in southern Pakistan, the company aims to offer high-quality, safe, and reliable deliveries.
Customers will benefit from reduced lead times and costs through just-in-time deliveries, with PureOxide being transported in specially designed 100% virgin HDPE jerry cans featuring pressure-release technology and vapor-blocking membranes to ensure safety.
EPCL’s parent, Engro Corporation, has partnered with the International Finance Corporation (IFC) to support the plant’s development. The project aligns with EPCL’s long-term growth objectives, which include diversifying its product line, enhancing operational efficiencies, and meeting market demand more effectively.
Abdul Qayoom Shaikh, CEO of EPCL, commented, “Our HPO business will strengthen local industries, especially export-oriented textiles players, who will be able to source a high-quality product locally. With unmatched quality, safety, and sustainability, we are confident that PureOxide will become the preferred choice for customers in Pakistan and beyond.”
Ahsan Zafar Syed, President & CEO of Engro Corporation, added, “Our Rs 12 billion investment in the hydrogen peroxide plant reflects Engro’s commitment to growth and continued belief in Pakistan’s potential. I would like to thank the EPCL leadership, IFC, project team, partners, and other stakeholders for their support in the successful completion of this project.”
In its latest financial report, EPCL reported a consolidated loss after tax of Rs161 million for 2024, a sharp decline compared to a profit after tax of Rs8.9 billion in 2023. The company attributed the loss to lower PVC prices and rising energy costs, resulting in a loss per share of Re0.4 compared to earnings per share of Rs9.12 in 2023.
