Kafco plans $1b plant
Star Business Report
The Karnaphuli Fertiliser Company Limited (Kafco) plans to set up its second plant to produce 3,000 tonnes of urea fertiliser a day.
“We’ll submit our proposal to Industries Minister Dilip Barua soon for the $1 billion plant. Primarily, we’ll choose a site anywhere at Ashuganj, with a hope of available gas supply here,”said Salahuddin Ahmed, Kafco’s chief executive officer.
“We now await government’s nod to start construction work this year. The profit of the existing plant will be reinvested in the new plant,” he told The Daily Star after a press conference at Sonargaon Hotel in Dhaka yesterday.
Ahmad also said Kafco has been a totally debt-free company since February 1, 2006.
The company contributed $744.48 million to the government’s exchequer since fiscal 2004-05 to 2009-10, he informed the press.
Kafco sold 82 percent to 421,384 tonnes of urea to the government last fiscal year and exported 91,851 tonnes.
The company has to export fertilisers despite the item’s scarcity in the local market, as it was set up in 1990 with foreign investment, the CEO said.
Bangladesh government holds 43.51 percent share of the company, Kafco Japan 31.28 percent, Subcontinent Ammonia Investment 8.63 percent and Stamicarbone 1.57 percent shares.
Since inception, Kafco paid $247.44 million in taxes and duties, the company’s top official said.
“Kafco has paid dividends to its shareholders since FY2005-06. Bangladesh government is the single largest beneficiary. Up to FY 2009-10, the company has paid dividends of $441.8 million, out of which the government has received $191.6 million,” he added.
While his attention was drawn to the planned new factory, Industries Minister Dilip Barua said he is not aware of it. “Perhaps, the plan is yet to be finalised. The government is busy with its own plant now,” Barua said.