Pakistan Engro’s PVC expansion cost up 57% due to COVID impact
by ChemOrbis Editorial Team - content@chemorbis.com
Engro Polymer and Chemicals has issued preference shares to raise funds to cover the increased cost of its PVC expansion and VCM debottlenecking project, according to the prospectus of the Pakistan-based company.
The producer said the project cost has increased to PKR11.95 billion ($75 million) from PKR7.6 billion ($48 million) earlier due to the impact of COVID-19 which resulted in expenses such as higher requirements for accommodation on the site to ensure social distancing, creation of isolation centers and provision of safety equipment.
The steep devaluation of the Pakistan currency from PKR109 in December 2017 to PKR160 to the dollar currently was another factor behind the higher cost, the company added.
Engro’s targeted completion of the expansion project - originally the third quarter of last year - has been delayed to the first quarter of this year due to the pandemic.
The producer said the project cost has increased to PKR11.95 billion ($75 million) from PKR7.6 billion ($48 million) earlier due to the impact of COVID-19 which resulted in expenses such as higher requirements for accommodation on the site to ensure social distancing, creation of isolation centers and provision of safety equipment.
The steep devaluation of the Pakistan currency from PKR109 in December 2017 to PKR160 to the dollar currently was another factor behind the higher cost, the company added.
Engro’s targeted completion of the expansion project - originally the third quarter of last year - has been delayed to the first quarter of this year due to the pandemic.
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