Wata Chemicals to enhance production capacity

Its share price jumps 5.25pc after the news

FE report | Thursday, 28 March 2019

The board of directors of Wata Chemicals has approved BMRE by setting up of units and plants at the factory for enhance production capacity.
The board has approved for BMRE (Balancing, Modernization, Rehabilitation and Expansion) of 18,000 MT per annum capacity of sulphuric acid plant unit-1, according a disclosure posted on the Dhaka Stock Exchange (DSE) website on Wednesday.
The board has also decided to set-up of new aluminium sulphate (ALUM) Plant Unit-2 for 12,000 MT per annum.
The board has also decided to set-up Linear Alkail Benzene Sulphonic Acid/Sodium Lauryl Ether Sulphate (SLES) plant for 7,200 MT per annum at its factory in Narayangonj, said the disclosure.
Approval has been given for obtaining necessary finance of Tk 509.10 million (Tk 50.91 crore) from Agrani Bank, Principal Branch, Dhaka, according to the disclosure.
The board has also approved for establishment of a poly Aluminium Chloride Plant of 4,500 MT per annum at the factory premises.
Recently, Wata Chemicals opened its second sulfuric acid plant built at an investment of nearly Tk 300 million.
Sulfuric acid is mostly used in production of fertiliser, in refining water and petroleum and in manufacturing other chemicals such as hydrochloric acid, nitric acid, sulfate salts, synthetic detergents, and dyes and pigments.
Following the news, the company's share price rose 5.25 per cent or Tk 26.30 each to close at Tk 527.10 on Wednesday at the DSE.
In the last one year, its share traded between Tk 270 and Tk 623 at the premier bourse.
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