The venture, being a largest ever investment by local sponsors in green-field project, has following strengths:

The acquisition of Pak Arab Fertilizers (Pvt.) Limited (“PAFL”) and the operational experience is expected to assist the sponsors in successfully managing and implementing the Project. As the sponsors have not only gained marketing and operational experience, but have also been able to identify the contractors to undertake the construction of the Project. The sponsors have been successful in improving the profitability of PAFL and have repaid debt of PKR 1,000 million during the very first year of acquisition of PAFL.

Renowned companies like Kawasaki Plant Services of Japan, Stamicarbon of Holland and Kellogg of USA have been engaged by the Sponsors for providing services for the implementation and management of the Project. CNCEC, which is directly administered by the State Counsel of China, is providing the NP plant and is responsible for the civil and mechanical construction of the Project. CNCEC has diversified exposure of setting up projects in sectors like Fertilizer, Petrochemical, Oil Refinery, Power and Infrastructure projects.

The Company has awarded the contracts for supply of plant, machinery and technology to international reputable companies, which are the leaders in their respective areas. The Company for providing the license for the Urea plant has engaged Stamicarbon, who has provided license to 220 projects and has a global share of nameplate capacity of approximately 70%. CNCEC, which will be setting up the NP plant and is responsible for civil and mechanical completion of the Project, is a large corporation directly administered by the State Council of China. Sojitz Corporation, Kellogg and Kawasaki Plant Services, which are responsible for project management, have unmatched experience of setting up chemical plants.

The sponsors have been able to form an experienced and motivated management team including Mr. Muhammad Abad Khan, having an extensive experience of 50 years in the field and Mr. Muhammad Nasir Butt, who has worked as Managing Director, PAFL, Pak American Fertilizers Limited and Pak Saudi Fertilizer Limited. . Mr. Iftikhar Baig a professional accountant having experience of more than two decades who was pivotal in the acquisition of PAFL and its subsequent turnaround. The management team also comprises of personnel who were involved in the setting up of Fauji Bin Qasim project.  Through their experience they have been able to identify the key factors which resulted in the initial problems faced by Fauji Bin Qasim project and have been able to address those issues through contracts executed with the suppliers.

The financial projections of the Company are based on fertilizer production at 75 MMCFD of gas against an installed capacity of 1.5 million tonnes p.a., accordingly the projected capacity has been assumed at 1.1 million tonnes p.a.  Hence in case 35 MMCFD of additional gas is provided by MGCL, the Company will be able to achieve production of 1.5 million tonnes p.a.

The combined capacities of PAFL and Fatima Fertilizer are expected to provide the sponsors with the negotiating power when dealing with the distributors and assist them in obtaining the optimal terms for sale of products of both the plants. The established brand name of PAFL products will also help Fatima Fertilizer in the marketing of the products manufactured.