Friday, September 24, 2010

Lotte Pakistan Plans to Spend $500 Million to Increase Chemical Production

Lotte is aconglomerate and one of the largest food and shopping groups in Japan and South Korea. This $500 million investment come in right after China's announced that its exporting Pakistan a 1000 MW Nuclear Plant !

Lotte Pakistan PTA Ltd., the nation’s only producer of pure terephthalic acid, plans to spend $500 million to increase output as demand rises for the chemical used in making polyester.

“The investment may be in another plant producing the same product in Pakistan,” Asif Saad, chief executive officer of the company, said in an interview in Karachi yesterday, without giving details. Lotte Pakistan is yet to decide a timeframe for the investment, Zain Talpur, a company spokesman, said today.

Demand for pure terephthalic acid may increase as textile makers use more polyester after the nation’s worst-ever floods destroyed cotton standing in fields, according to Syed Abid Ali, a research analyst at Arif Habib Securities Ltd. in Karachi. A jump in cotton prices to a 15-year high this month may also boost polyester demand.

Pakistan, the world’s third-largest cotton user, may import as much as 50 percent more of the fiber this year after floods damaged crops, Muhammad Arshad, a vice president at the Pakistan Central Cotton committee, said this month. The South Asian nation is the world’s fourth-largest cotton producer and textiles account for two-thirds of its overseas shipments.

Flooding since July 22 caused $7 billion of damage across the nation and 20 million people were displaced, according to Prime Minister Yousuf Raza Gilani.

Lotte Pakistan’s shares, which have climbed 7.9 percent this year, rose 0.6 percent to 8.45 rupees at 9:21 a.m. on the Karachi Stock Exchange. The company doubled its profit in the quarter ended June 30 to 1.26 billion rupees ($14.6 million).

The company is 75 percent owned by South Korea’s Lotte Group which bought a majority stake in Pakistan PTA Ltd. in September 2009, according to the company’s website.

Tuesday, September 21, 2010

China to build 1000 MW Nuclear Plant in Chashma, Pakistan !

Long trusted Pakistan's friend China going to help Pakistan in the power shortage crisis. China to build 1000 MW Nuclear plant in Chashma which is part of the deal signed in 2003 to build 10 nuclear plants in Pakistan.
Chashma I is a 300 MW Plant which has already completed.
Chashma II the 650 MW plants is near completion.
Chashma III and IV will be 1000 MW plants.
KANUPP-II, Karachi is under negotiations.

China gave its firmest government confirmation yet of plans to build two new nuclear reactors for Pakistan, but a Foreign Ministry spokeswoman said she did not know about talks over a bigger reactor deal.

The spokeswoman Jiang Yu said China plans to help Pakistan expand its Chashma nuclear energy complex in Punjab by building two reactors in addition to one already operating and another nearing completion.

Her comments also suggested Beijing may see no need to seek approval for the two new Chashma reactors from the Nuclear Suppliers Group (NSG), an international council of governments, some of whose members have voiced qualms about the deal.

“This project is based on an agreement signed between the two countries in 2003 about cooperation in the nuclear power field,” Jiang told a regular news conference, citing plans to build the No. 3 and No. 4 reactors of about 300 megawatts each at Chashma.

“China has already notified the International Atomic Energy Agency about the relevant details, and invited the IAEA to exercise safeguards and oversight of this project,” said Jiang.

Up to now, Chinese government officials have been tight-lipped in public about the planned new units at Chashma, although the Chinese companies picked to build them have announced contract signings.

Jiang's statement that the new reactors come under a 2003 agreement may ruffle other countries that have pressed China to seek a waiver for them from the Nuclear Suppliers Group, a 46-member consensus-based body that seeks to ensure nuclear exports are not diverted to non-peaceful purposes.

The expansion of China's nuclear power ties with Pakistan has magnified unease in Washington, Delhi and other capitals worried about Pakistan's history of spreading nuclear weapons technology, its domestic instability, and about the potential exceptions created in international non-proliferation rules.

Jiang was also asked about the China National Nuclear Corp's statement on Monday that it is in talks to build a 1-gigawatt nuclear reactor for Pakistan, in addition to the four smaller Chashma units built, being finished or planned.

But she had less to say on this.

“We don't understand this matter. You can make further inquiries with the company,” Jiang said.

Pakistan is a long-standing partner of China, and has been suffering chronic power shortages.

To receive nuclear exports, nations that are not one of the five officially recognised atomic weapons states must usually place all their nuclear activities under the safeguards of the International Atomic Energy Agency, say NSG rules.

When the United States sealed its nuclear agreement with India in 2008, it won a waiver from that rule from the NSG after contentious negotiations in which China raised misgivings.

Washington and other governments have said China should at least seek a similar waiver for the planned new reactors in Pakistan.

But China now appears positioned to argue that the two new units at Chashma were part of an agreement made before it joined the NSG in 2004, and so do not need another waiver.

Beijing stayed quiet about Chashma at an NSG meeting in June and has not publicly sought an exemption.