“The sale of ICI Pakistan to Yunus Brother Group concluded on December 28, 2012”
The business environment remained tough in 2012, with the escalating energy crisis in Pakistan impacting both margins and downstream demand. However, we were able to increase revenue on the back of effective price management, new product launches and opportunities in the Life Sciences and Chemicals businesses.
Operating results were severely affected by the rising cost of alternative energy needed to maintain optimum production levels. The additional cost incurred to replace the use of natural gas amounted to €3.4 million. However, our ongoing coal-fired boilers project – which will offer a cheaper alternative to high cost energy – is progressing well and is on track for completion in 2013. We also incurred a one-off expense of €3.1million on the demerger of the Paints business and the divestment of ICI Pakistan.
AkzoNobel, in accordance with its declared strategy through ICI Omicron B.V., sold its entire holding of 75.81 percent in ICI Pakistan Limited to Yunus Brother Group on December 28, 2012. In line with the same strategy, the Paints business of ICI Pakistan Limited was demerged into a separate listed entity (Akzo Nobel Pakistan Limited), effective July 2011. The Pakistan Paints business is now managed through our Middle East organization.
The business won the coveted Best Sustainability Report WWF-ACCA award, as well as receiving a number of additional honors for financial and sustainability reporting. Our employee engagement score was also one of the best in the company. In August, a safety incident at our Polyester site in Sheikhupura unfortunately resulted in a fatality. A detailed investigation was immediately carried out and new HSE management controls are being drawn up.
Waqar A Malik