EPCL seeks permission for nil rates to import ethylene for EDC and VCM production

22-Oct-10

Pakistan’s Engro Polymer and Chemicals Limited (EPCL) is seeking permission to import ethylene at zero rate for production of Vinyl Chloride Monomer (VCM), Ethylene Dichloride (EDC). EPCL has recently undergone expansion/back integration at an investment outlay of US$260 mln, as per Business Recorder. EPCL manufactures Poly Vinyl Chloride (PVC), VCM, EDC, Caustic Soda and Sodium Hypo Chlorite. The company's major stakeholders are Engro Corporation Ltd, Mitsubishi Corp. and International Finance Corporation (IFC). Ethylene is the main raw material of the company's manufacturing process, which is imported under serial No 64 of S.R.O. 565(I)/2006 at a concessionary duty rate of 0%. Ethylene is consumed in manufacturing of EDC and VCM for onward manufacturing of PVC. However, if surplus EDC or VCM is available it has to be exported, as there is no other consumer of EDC or VCM in Pakistan. The exports are generally made through company's wholly owned subsidiary Engro Polymer Trading (Pvt) Ltd.