akzonobel ici ar2011 soda ash tcm182-73444

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54 ICI Pakistan Limited Annual Report 2011 Soda Ash It would be hard to go anywhere in today's world without being close to a product produced with or containing Soda Ash. Picking up the newspaper, sipping on a glass of orange juice, biting into a hot croissant, or simply wearing freshly laundered clothes, you experience the use of Soda Ash every day. Without Soda Ash, the manufacturing of necessary commodities such as glass, paper and detergents would not be possible. The closest you get to this versatile chemical compound is the baking soda tin in your kitchen used as a baking ingredient.

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  • 54 ICI Pakistan Limited Annual Report 2011

    Soda Ash It would be hard to go anywhere in today's world without being close to a product produced with or containing Soda Ash. Picking up the newspaper, sipping on a glass of orange juice, biting into a hot croissant, or simply wearing freshly laundered clothes, you experience the use of Soda Ash every day. Without Soda Ash, the manufacturing of necessary commodities such as glass, paper and detergents would not be possible. The closest you get to this versatile chemical compound is the baking soda tin in your kitchen used as a baking ingredient.

  • 55ICI Pakistan Limited Annual Report 2011

    Change has always been a constant in the business world. Yet in recent years it has hit us with an unprecedented speed and intensity. The forces shaping our world today are immense, complex, surprising and challenging. More than ever, our prosperity as organizations, societies and individuals depends on the extent to which we can adapt to these forces and deploy them to our advantage.

    Our Soda Ash business predates the formation of this country. With over 67 years of successful presence, ICI is the largest Soda Ash producer in the country. Our Soda Ash Plant in Khewra was established in the 1940s, even before the creation of Pakistan. Since then, starting with a small capacity of 18,000 tons per annum, we have made huge investments in growing this business in line with the growth of the downstream industry in Pakistan. Our current annual capacity of 350,000 tons per annum provides assurance to our customers that ICI Soda Ash can be relied upon as a trusted and reliable supplier for high quality Soda Ash.

    The growing energy crisis in Pakistan has been our biggest challenge this year as well, with limited gas being available throughout the year. The team decided to embark upon an aggressive Resource Conversation agenda and I am proud to state that each and every member of the Soda Ash business took up this challenge personally. From awareness campaigns for water conservation to utilizing creative solutions like solar energy and waste recycling initiatives, we managed to save 240 million liters of water, reduce waste by 57% and save 76,000 MMBTU of energy, as compared to 2010.

    This year we have taken an important step to ensure business sustainability and improve production capacity through a major investment in the plant to install boilers for steam generation based on state of the art Coal Fired Technology.

    Globally, 2012 is expected to be an uncertain year for Soda Ash demand. Our long-term relationship with our customers is an asset that we cherish, in line with our value of focusing on our customers future first, and we are proud to provide customer centric solutions, by delivering consistently high quality products.

    Our team has its eye on the economic as well as socio-political challenges that the Business will face over the year, and we are ever more committed to overcome the challenges of 2012 by leveraging our solid experience in the Soda Ash Business of 67 years, the talent of our people, and the support of our loyal customer base.

    From awareness campaigns for water conservation to utilizing creative solutions like solar energy and waste recycling initiatives, we managed to save 240 million liters of water, reduce waste by 57% and save 76,000 MMBTU of energy

    Ali A AgaVice President Soda Ash Business

  • 56 ICI Pakistan Limited Annual Report 2011

    Market OverviewGlobal demand for Soda Ash remained firm in 2011; however, there are signs of a global slowdown in the fourth quarter, and excess capacity in China remains a concern for all.

    Business DevelopmentOur focus remains to service the domestic demand for Soda Ash, and to be the supplier of choice for downstream industries. In addition to that, over the past few years, we have successfully established our product internationally.

    In order to tackle the major challenge of the energy crisis, the Business has signed a contract to install Coal Fired Boilers for steam generation. The boilers, expected to come online by mid-2013, will allow us to fully utilize our 350,000 tons per annum capacity and better serve our customers.

    Major Highlights of the YearTo overcome the major challenges of energy shortages, the Soda Ash team put in a tremendous effort throughout the year to achieve the overall goal of Resource Conservation. Several teams were put together to come up with viable solutions and action plans, which resulted in awareness campaigns such as Every Drop Counts to save on water utilization by reusing water through the design and implementation of a water recycling system.

    The Save Every Joule of Energy was to cut back on our power utilization. As is the case, the success of these initiatives lies in the hands of those who initiate it, and the response thus far to these ongoing activities has been enthusiastic and measurable. Through these various creative and innovative ideas, which involved hardware changes as well as process optimization, the Business has managed to save 240 million liters of water, achieved a 2.3% (equivalent to 76,000 MMBTUs) reduction in energy utilization and a 57% reduction in waste.

    Glass, one of the many uses of Soda AshFirst solar geyser at Soda Ash site

    In August 2012 we will be celebrating the 5th anniversary of our cooperation with ICI. Why celebrate? Because we find this period in Weglohuts history as one of the best. As ICI is a very demanding partner, we have to develop all the time. Due to this relationship, from a European based company, we became a global trader. Logistic solutions and business standards which we had to initiate due to ICI are now commonly used in the business with Japan, Indonesia, South Africa, Gulf and Mediterranean Countries.

    Relationship between ICI & Weglohut is not a wrestling: Buyer vs. Seller. It is not just standard bargaining, as ICI is not just a standard client ICI is our Partner and one of our most reliable customers. That is why our relationships are far, far deeper and stronger than with other companies. It is not a simple supply of coke any more. We are supplying solutions - we are supplying quality, stability, security and flexibility.

    I believe that despite global changes, our cooperation will last for a long time. I believe that our business and personal relationships will grow, as our children do.

    PHU Weglohut, Suppliers of Metallurgical Coke, Poland

  • 57ICI Pakistan Limited Annual Report 2011

    Strength of Relationship: It has been a privilege to be a business partner of ICI Soda Ash for the past 36 years. Over the years, our relationship with ICI has strengthened owing to their sound business processes and value for building strong and long-lasting relationships. Our association now spans over 3 generations!

    Efficiency/Followup: ICIs team is very cooperative, friendly and helpful on all fronts. We value our relationships with the team.

    Reliability: ICIs reliability is sound. Product is delivered on time, as per the agreed specifications and terms of sale. We have not had issues with this aspect of our business relationship with ICI. This factor being a critical aspect in commodity trading has led us to value and cherish our long association with ICI Soda Ash.

    Sound and Ethical Business Practices: ICI Soda Ash has a long and proud history spanning over 65 years, which has enabled them to develop sound systems and processes. ICIs way of doing business has become a benchmark for others (particularly in terms of service levels), and is an unofficial industry standard that others aspire to follow.

    Sheikh Abdul Sattar, Soda Ash Distributor, Multan Region

    ChallengesThe Soda Ash Business has a history of accepting challenges and overcoming adversity. The year 2011 was a case in point in this regard. Over the course of the year, Pakistan was plagued by the worst ever energy crisis, and poor law and order conditions.

    The biggest challenge in 2011, from a manufacturing standpoint, has been managing spiralling variable costs owing to increased dependence on alternative fuels as a result of the worsening gas supply situation in the country. Consequently, growth in the domestic soda ash market remained stunted as all major downstream industries suffered due to the energy crisis.

    However, despite the adverse circumstances, the Business was able to overcome the odds and meet the targets that it had set for 2011. This was accomplished through the dedicated efforts of our people who developed new and innovative ideas, and implemented several energy and cost reduction initiatives aimed at mitigating these challenges, while keeping a strong focus on cost control.

    Furthermore, the Business built upon existing strong partnerships with its customers, and ensured that we continue to focus on customers future first by providing customer-centric solutions and high quality products in full and on time.

    Future Outlook2012 is expected to be another tough year for business in Pakistan. Energy crisis, depreciation of the Pak Rupee and the security situation of the country will be the key issues to look out for. The Soda Ash team has its eye on the economic, as well as socio-political challenges, that the Business will face over the year.

    In order to tackle the challenge of the worsening energy crisis going forward, a contract has been signed for Coal Fired Technology for our plant which will reduce the plants dependency on natural gas and ensure higher operating rates.

    Winnington Hospital achieved multiple milestones during the yearCelebrating Teacher's Day at Winnington School