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Reasons for Agritech's Shutdown & Recovery

The presentation discusses the reasons for the temporary shutdown of Agritech Fertilizer Company, a fertilizer plant located in Mianwali, Pakistan. The factory closed for 6 months in 2016 due to a severe gas shortage. Using liquefied natural gas was not a viable alternative as it would significantly increase production costs. This led to unemployment for the company's 2,000 workers and lower crop yields as farmers faced fertilizer shortages. After meetings with the government, the company was able to secure a new gas supply from nearby fields and reopened within 6 months, regaining its production capacity.

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48 views9 pages

Reasons for Agritech's Shutdown & Recovery

The presentation discusses the reasons for the temporary shutdown of Agritech Fertilizer Company, a fertilizer plant located in Mianwali, Pakistan. The factory closed for 6 months in 2016 due to a severe gas shortage. Using liquefied natural gas was not a viable alternative as it would significantly increase production costs. This led to unemployment for the company's 2,000 workers and lower crop yields as farmers faced fertilizer shortages. After meetings with the government, the company was able to secure a new gas supply from nearby fields and reopened within 6 months, regaining its production capacity.

Uploaded by

hafizarslanmushtaq0
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Presentation topic

“ Reasons of failure of any indigenous industry of Pakistan”

Group members

• Usama Zahid

• Hafiz Arsalan Mushtaq

• Faraz Zafar

• Syed Ali Bin Jabir Gillani


Company name

Agri tech fertilizer company pvt.ltd

• Agritech (Formerly Pak-American Fertilizers LTD) was the first Nitrogenous fertilizer plant built in Pakistan. It was

commissioned in 1958 with production capacity of 50000 MTPA of Ammonium Sulphate based on indigenous coal &

gypsum as raw materials. The capacity was enhanced to 90000 MTPA in 1968.

• It is located in Mianwali
• In 1973 the plant was converted from coal gasification to Natural Gas process.

• NFC is owned by Government of Pakistan and was incorporated as private limited

company in August, 1973.

• Agritech fertilizer company after that privatization process named as Pak American

Fertilizer pvt.ltd.
The factory was closed on 26 November 2016, and was reopend on 1 st may 2017.

Reason of shutdown

1. The company was closed for 6 months due to extreme shortage of gas.

2. In those days government asked the fertilizer industries to use liquefied natural gas (LNG) instead

of natural gas.

3. LNG could not be used for manufacturing the fertilizer as it would multiply the production cost of

urea.
Outcomes of shutdown

• An intense unrest prevails among the 2,000 workers of a fertilizer factory at Daudkhel due

to its closure for the last 6 months after the suspension of gas supply to it.

• The workers suffered the unemployment for 6 months

• Farmers faces the shortage of urea for the crops which further effects the production of

crops and hence the total economy of the country was effected in that period because

agritech was one of the most powerful units for the production of fertilizers
The monthly salary of 2,000 workers altogether was Rs100 million and the six-month long

closure had had dried up the accounts of the factory.

How the issue was resolved

They had requested the Khyber Pakhtunkhwa government to supply the gas to the fertilizers

factory from the Tabi Sir area, which is few kilometers from Daudkhel.

After so many meetings and the wait of 6 months general manager, Mr. Rehan Munir and owner

of fertilizer company agrees the government


• At present plant is in production at 104% load.

• Just in 6 months company regain its position and achievements.

• Their determination and hard works pays the reward as they regain their production

capacity.

• Capacity of Agritech now a days has reached upto 286,000 MTPA (Million Tonnes Per

Annum.)

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