The management of loss-making Sitara Peroxide Limited (SPL), a chemical manufacturer, is pinning its revival hopes on a planned Balancing, Modernization, and Replacement (BMR) initiative, backed by fresh capital injection and bank financing.
As per the report, made available to the exchange on Tuesday, the company’s sponsors have planned to further inject Rs355 million in the company through disposal of assets of associated company which shall be utilized for Balancing, Modernization and Replacement (BMR) in addition to financing from banks.
“This BMR include implementing the latest and most efficient production technology through the conversion to slurry bed catalyst technology from fix bed catalyst technology.
“This upgrade will allow for greater efficiency and productivity in the production process and will enhance the production capacity of existing plant by 40% and will result in significant reduction in cost of production of the company,” read the report.
Sitara Peroxide looks to ‘generate funds through various sources’ as shutdown bites
While sharing the financial results for the of half year ended on December 31, 2023, Sitara Peroxide said the company incurred a net loss of Rs76.371 million in comparison with loss for the corresponding half year at Rs220.06 million.
Meanwhile, it said that the BMR will enhance current production capacity of plant from 30,000 tons per annum to 40,000 tons per annum along with better yield and efficiency.
The listed company shared that it remains in active negotiations with the technology and plant & machinery suppliers and has already made certain advance payment. “The management of the company is confident for BMR and viable operations,” it said.
Sitara Peroxide Limited incorporated in Pakistan as a public limited Company under the Companies Ordinance, 1984 (Repealed with the enactment of the Companies Act 2017 on May 30, 2017) and is listed on Pakistan stock exchange.
The principal activity of the company is manufacturing and sale of hydrogen peroxide (H2O2) and Sitara Safe (disinfectant).
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