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Chemicals Pakistan

In € millions

Revenue – Chemicals Pakistan (bar chart)

Chemicals Pakistan comprises a 75 percent stake in ICI Pakistan Limited and Pakistan PTA Limited, both listed companies in Pakistan. The companies focus almost exclusively on Pakistan. The main areas of expertise include soda ash, polyester fiber, pure terephthalic acid (PTA), pharmaceutical and agriculture products, and a host of specialty chemicals. With a diversified product range, practically every key industry in Pakistan is serviced, prominent among which are textile, construction, pharmaceuticals, personal care, food and beverage, agriculture and household appliances.

Performance overview

The global economic slowdown fueled a decrease in Pakistan’s GDP growth, as well as a contraction in demand. A severe energy crisis and rising interest rates had a further negative effect on the volume growth of our businesses. PTA operations incurred an extended plant overhaul shutdown due to the market conditions. The reduced PTA tariff and the depreciation of the Pakistani rupee also resulted in a significantly lower profit level in the fourth quarter for this business when compared with 2007. In spite of the turmoil, the Pakistan business reported an increase in operating profits in local currency over 2007.

In addition to the principle business of Soda Ash, Polyester and PTA, we provide a range of industrial and consumer products in the life sciences and general chemical markets. For the first three quarters of the year, these businesses performed well in local currency, despite the domestic political and economic challenges in Pakistan. However, volume sharply declined across all businesses in the fourth quarter as a result of weak downstream demand brought on by the global economic crisis.

On an encouraging note, the revenue in our Soda Ash business reached a record level in 2008. Furthermore, despite the turbulent crude oil prices, the performance of our Polyester business essentially equaled that of 2007 and in the general chemicals area we are expanding the revenue stream of the business by commercializing the broader range of AkzoNobel Specialty Chemicals products.

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