Islamabad: According to a press release, Prime Minister Imran Khan inaugurated a 100,000-tonne PVC III factory of Engro Polymer and Chemicals (EPCL) on Friday, which will enable import replacement of polyvinyl chloride (PVC) and enhance exports.
Prime Minister Khan, speaking at the event, stated that the government supports the expansion of local businesses in order to ensure import substitution and increase exports. To encourage long-term economic growth, he advised the business community to concentrate on import substitution and diversification of the export base.
EPCL, a subsidiary of Engro Corporation, is Pakistan’s only fully integrated chlorvinyl chemical complex and PVC producer.
The International Finance Corporation (IFC) provided up to $50 million in finance for the plant expansion, which drew on global project execution skills from a Japanese licensee and a Chinese construction team.
EPCL now has the capacity to produce 295,000 tonnes of PVC per year. EPCL will now contribute roughly $240 million to import substitution, according to the press release.
In 2021, the company also shipped PVC resin worth $25 million to Turkey and the Middle East. PVC demand has increased at a rate of 6% per year, with the building sector accounting for almost 70% of total use.