Bangladeshi fertiliser giant to invest $500m

Dhaka, February 19:

Bangladesh’s leading fertliser company said today it was planning to invest $500 million in a new plant in a venture expected to meet all the needs of the agriculture-based country.

“We’re planning to build a new urea fertiliser plant at a cost of around $500 million. It has been discussed in our board meeting,” Peter May, managing director of Karnaphuli Fertiliser Company Limited (KAFCO), said. The new pl-ant will produce 825,000 tonnes of urea annually, which is more than the deficit the South Asian country faces every year, May said. KAFCO had announced $63.5 million in after tax profit on sales of $199 million in the year ending on July 31.

The company is the largest joint venture multinational in Bangladesh with investments exceeding $600 million. The Bangladesh government owns the largest stake with 43 per cent of shares while the remainder is owned by the Japan Bank for International Cooperation as well as Japanese, Danish and Dutch companies.

The company produces 1,725 tonnes of urea and 1,500 tonnes of ammonia per day. May said a record price of urea in the international market had helped propel them to highest profit .