Ghani Chemical's Strategic Move to Combat Soaring Electricity Costs: Plans for Coal Power Plant at Port Qasim
Ghani Chemical Industries Limited (GCIL) is set to counter rising electricity costs by investing in a multi-million dollar coal power plant at Port Qasim. The strategic move aims to cut power costs by 45% to 50% for its Air Separation Unit (ASU) plants in Karachi, providing a competitive edge.
Karobar
In response to the escalating electricity expenses, Ghani Chemical Industries Limited (GCIL) has made a significant decision to establish a state-of-the-art coal power plant, representing a multi-million dollar investment. The Board of Directors (BoD) of GCIL unveiled this strategic move in an official disclosure to the Pakistan Stock Exchange (PSX) on Monday.
Amidst the surge in utility prices, identified as the primary raw material cost for the production of medical and industrial gases, GCIL aims to address the challenge by setting up a 7MW coal power plant. The project, estimated at a cost between $5-5.5 million, will utilize a combination of local and imported coal and will be located at Port Qasim or any nearby suitable location.
The anticipated benefits of this initiative include a substantial reduction of 45% to 50% in the power costs associated with GCIL's Air Separation Unit (ASU) plants situated at Port Qasim in Karachi. Recognizing the critical role of power in production expenses, the company expects this move to confer a robust competitive advantage.
As Pakistan grapples with the persistent issue of surging electricity bills, affecting both the general public and businesses already strained by high inflation and sluggish economic activity, GCIL's decision reflects a proactive response to the economic challenges at hand.
In a related announcement, GCIL revealed plans to relocate one of its 110TPD (tons per day) ASU plants from Phool Nagar, Punjab, to the southern region of the country. This strategic move aims to meet the growing demand for medical and industrial gases while creating a backup for existing plants nationwide. The relocation process will follow the installation and commissioning of the Hattar Plant.
GCIL, initially established as a private limited company in 2015 and later converted into a public limited company in 2017, continues to adapt to the dynamic economic landscape, demonstrating resilience and foresight in the face of industry challenges.
