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North Free Zone: Agven fertilizer company begins test operation
By Yasir Habib Khan | Gwadar ProFeb 7, 2024
Gwadar, Feb.7, (Gwadar Pro)- A significant turning point unfolds in 2024 as Agven Fertilizer Company initiates its test operations on a 10-acre plot of land in Gwadar North Free Zone, also known as Gwadar Free Zone Phase II, in the first week of February.
Agven Private Limited stands as the first investor to establish an industry in Gwadar North Free Zone, marking a groundbreaking endeavor in terms of both scale and product manufacturing. "The production facility boasts an initial annual capacity of 20,000 tons of sulphuric acid. Initially, the company had plans to establish a sulphate of Potash and sulphuric acid plant,"
However, he mentioned that the chemical facility will be set up at a later stage. Currently, Hydrocholic acid (HCL) is produced as a by-product, with sulphate of Potash as the primary product. "Calcium carbonate, vanadium oxide, water, and LPG are utilized as raw materials.
Sulphur will laterally be employed in the production of sulphuric acid. Agven has successfully initiated test production of the required fertilizer from the factory. Commercial operations will commence later this month, with products destined for export abroad and the tariff area," he elaborated.
The Agven factory has commenced all functions under temporary arrangements such as the availability of electricity, water, and other necessities provided by China Overseas Port Holding Company. Once the ongoing work on allied facilities like power transmission lines, fiber optic cables, road networks, sewerage, and drainage is completed, Agven will commence regular operations.
"The construction of the factory began last year and was completed within a remarkable timeframe. Aside from offering hundreds of job opportunities, Agven will provide ample business opportunities to locals in terms of daily life commodities and the supply of raw materials," remarked Project Coordinator Mr. Arslan to Gwadar Pro.
Upon commencement of operations, he added, it can pave the way for several other investors to invest in Gwadar Free Zone. Regarding inquiries, he stated that Sulphur and sulphuric acid will be imported from Iran and other Central Asian countries as raw materials for fertilizer manufacturing.
"With local manufacturing and seeking exemptions from customs duties, the cost of fertilizer production in the zone would be lower and market competitive. Subsequently, it can help increase Pakistan’s exports," he concluded.