NICL to invest $11mn for expansion, Hub relocation

Nimir Industrial Chemicals Limited (NICL), a Pakistani chemical manufacturer, has approved capital expenditure of Rs3 billion, i.e. approximately $11 million, for three strategic projects, including a new Palmitic Acid plant, expansion of its Chlorinated Paraffin Wax (CPW) and chlorine liquefaction plants, and relocation of an oleochemicals facility to Hub, Balochistan.

The company disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“Palmitic Acid, used in animal nutrition for milking cows, will create a new business line for the Company, with additional products planned for this segment,” the company said, adding that the additional products are planned for the segment.

NICL said demand for CPW had increased significantly following its localisation in Pakistan and was expected to grow further in coming years. “To meet this demand, the CPW plant will be expanded along with the chlorine plant, which is its basic feedstock,” NICL said.

The company expects to begin reaping benefits from the capital expenditure from fiscal year 2027-28 onwards, it said.

NICL will also relocate one of its oleochemicals plants from Sheikhupura to Hub.

“The relocation of the oleochemicals plant will strengthen the company’s presence in the southern region, support local demand, and enhance export opportunities through sea routes,” it added.

Nimir Industrial Chemicals Limited (NICL) was incorporated in Pakistan in 1994 as Ravi Alkalis Limited and was listed on the PSX in 1996. The company changed its name in 1998 after its ownership was acquired by a Saudi Group. In 2004, ownership was sold to an American Group called Knightsbridge, which the company later bought back in 2011 under a management buyout scheme.

Its principal activity involves the manufacturing and sale of chemical products, including a wide range of oleochemicals, aerosols, and chlor-alkali, as well as personal and home care products.