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Pakistan Maroc Phosphore S.A, (PMP) Morocco
 

Office Cherifien des Phosphates (OCP) Group of Morocco and Fauji Group including Fauji Foundation, Fauji Fertilizer Company Limited and Fauji Fertilizer Bin Qasim Limited, entered into a Joint Venture agreement in Sept 2004 to form a Company in Morocco named "Pakistan Maroc Phosphore S.A (PMP)" with an equity of 800 Million Moroccan Dirhams (equivalent US$ 95 Million). The project is located at Jorf Lasfar, Morocco, where OCP already has its presence in the form of various industrial setups. This Project will produce 375,000 MT of Phosphoric Acid per year by consuming 1,300,000 MT Phosphate Rock and 370,000 MT Granular Sulfur.

PMP shall utilize basic infrastructure and ancillary facilities already available with OCP at Jorf Lasfar. PMP shall meet total Phosphoric Acid requirements of FFBL.
 

The Project has successfully been completed in record time and within 2,030 Million MAD as budgeted, despite phenomenal rise in materials cost during the last few years. Sulfuric acid and Phos acid (28% concentration) production commenced on 27th Mar 08 and 4th Apr 08, respectively. Production of marketable Phos acid i.e, 54% concentration started on 8th Apr 08. Build up in storage tanks is in progress, first shipment is expected by early May 08.

 
Foundation Power Company (Daharki) Limited (FPCDL)
 

The company intends to invest an amount of upto Rs. 1.5 Billion in FPCDL, which is an independent 175MW power plant, an associated company established by Fauji Foundation. National Electric Power Regulatory Authority (NEPRA) has approved a project cost of US$ 196.472 million and determined levelized tariff of 7.24 cents/KWh.
 
Engineering, Procurement and Construction (EPC) Contract , Power Purchase Agreement (PPA) , Gas Supply Agreement (GSA), Implementation Agreement (IA) have been signed and Financial Close has also been achieved. The ground breaking ceremony was performed on 24th May 2007 at Daharki. President General Parvez Musharraf was the guest of honour for the ceremony.
 

Civil work is in progress. Equipment is being shipped as per schedule, so far six shipments have been received. Gas pipeline contractor has mobilized and completed the route survey and 15 KM long pipeline is expected to complete by October 2008. Work on residential colony is also underway. The project operations are likely to commence by 3rd quarter 2009.

   
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, INSHA ALLAH.

   

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