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Pakistan Maroc Phosphore S.A, (PMP) Morocco
 

Phosphoric Acid, being the main raw material for DAP production is being imported from Morocco. To ensure the continuous supply of this strategic raw material to run our DAP plant at Karachi, Office Cherifien des Phosphates (OCP), Morocco, the biggest industrial group of Kingdom of Morocco and the Fauji Group( Fauji Foundation, FFC and FFBL) entered into a joint venture for its uninterrupted supply. The company, named as Pakistan Maroc Phosphore S.A(PMP) costing 2030 million Moroccan Dirhams( US$ 250 million) was formed at Morocco. The project has successfully been completed in record time and within the budget. Commercial production and shipment to FFBL started in April 2008 and May 2008 respectively. Plant is designed to produce 375,000 MT per year of Phos acid thus meeting the total requirement of DAP plant of FFBL. Surplus acid shall be sold in the international market.

 
The Project is one of its kinds with strategic significance of involving two of the largest business groups of two brotherly Muslim nations i.e, Fauji Group of Pakistan and OCP Group of Morocco. Its formal inauguration was performed by His Majesty the King of Morocco in October 2008. Dignitaries from Pakistan also attended the ceremony.
 

Significant benefits associated with this project are:

 
  • Production of 375,000 metric tons of phosphoric acid per annum will not only ensure un-interrupted supply of raw material, catering the entire post-BMR demand of DAP requirement of FFBL, but would also be a source of profit in the form of selling out the surplus production. This, in turn will enhance FFBL earnings in the form of dividends.
 
  • This is the first ever foreign investment by the Fauji Group. Apart from its imminent contribution towards economic growth of Pakistan, it has added to the prestige of the Country. May also prove a gateway for others to invest in the international market .
 
  • Long-term raw material supply guaranteed in an extremely turbulent international market.
 
Investment in Fauji Cement Company Limited (FCCL) Expansion Project
 
Cement industry has witnessed exceptional growth in local consumption as well as in exports in the recent years, which has been a result of higher local construction and shortages in the region. Cement industry is expected to maintain its growth and in order to benefit from the increasing demand, expansion is becoming necessary for all cement manufacturers.
 
Fauji Cement Company Limited (FCCL), an Associated Company of FFBL, is in the process of expanding its existing operating capacity from 1.17 MTPA to 3.51 MTPA (200% expansion). The Fauji Cement Brand carries a premium in the market and is perceived as a better quality product. This is why FCCL has been operating at a higher capacity than the industry over the last 5 years. FCCL operates one of the most efficient and well-maintained cement plants in Pakistan which consumes approximately 50% less energy with quicker production turnaround time. Its multi-fuel burning capability allows it to use either natural gas, coal or furnace oil for its operations and further optimizing its fuel efficiency to improve operating margins. FCCL's management is also composed of senior technical personnel with vast experience of local cement sector.
 

Diversification of business will help FFBL sustain profitability and add to shareholders' value. Since FCCL has issuing fresh equity (at Rs 16 per share having face value of Rs 10 each) in order to finance its expansion project, FFBL has invested an amount of Rs. 300 Million, thereby becoming a 2.7% ordinary shareholder (of revised equity) in FCCL. The plant is scheduled to start its commercial production by the end of first Quarter 2010, IN SHAA ALLAH.
Associated Companies
 
  • Fauji Fertilizer Company Limited (www.ffc.com.pk)
  • Fauji Foundation (www.fauji.org.pk)
  • Pakistan Maroc Phosphore S.A
    (Joint Venture between Fauji Group, Pakistan & OCP Group, Morocco)
  • Foundation Wind Energy – I
  • Foundation Wind Energy – II
  • Fauji Cement Company Limited (www.fccl.com.pk)

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