KARACHI: Lotte PA, the biggest producer of PTA (Purified Terephthalic Acid) in the country, plans to retire around 63 million dollars of foreign loans and invest 40 million dollars in Pakistan.
According to industry sources, the management reiterated its plan to invest S$40 million in a captive power plant for uninterrupted power supply and $5 million in a catalyst recovery plant for cost efficiency. This will help the company’s volatile margins to improve. The management endorses the news report that Lotte Group is considering acquiring confectionery business in Pakistan without giving much detail.
At an annual general meeting held here on Thursday, the management unfolded its plan and said the company was considering repaying $63 million foreign loan as it had enough cash to do so.
At December-end, the company’s cash and cash equivalent was Rs5.4 billion.
No final decision has, however, been taken. This will hedge the company against exchange losses due to weakening Pakistani Rupee. The company will, however, have to forgo some gains earned on cash deposits.
Lotte PA currently has an annual production capacity of 500,000 tons. Besides local directors, two South Korean directors were also present at the meeting and were optimistic about the company’s operations.
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