KARACHI: Ittehad Chemicals Limited plans to increase its production capacity by over fold in line to match the expected increase in demand. The company has arranged finance and established a letter of credit to import plant and machinery.
The planned expansion is estimated to increase the production of Linear Alkylbenzene Sulfonic Acid (LABSA) and Sodium Lauryl Ether Sulfate (SLES) from 24,000 metric tonnes annually to 70,000 metric tonnes per annum. The expansion project is likely to improve the profitability of the company going forward, the company said in a statement to the Pakistan Stock Exchange (PSX).
Ittehad Chemicals Limited (ICL) was established in 1962 under the name of United Chemicals by a private entrepreneur. ICL was commissioned in the year 1964 with an installed capacity of 40 MT/day of Caustic Soda. The initial plant was set up by M/S Oronzio Denora of Italy.
The factory was ultimately denationalised in 1995 by the Privatization Commission Govt. of Pakistan. It was acquired by the Chemi Group of Industries, a Karachi-based entrepreneurial group. The new management immediately undertook the task of refurbishing the factory, its infrastructure, and updating its production line to improve efficiency and capacity.