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Descon Oxychem Limited (DOL) has recently undertaken a decision to increase the production capacity of their existing Hydrogen Peroxide (HP) manufacturing facility located in Lahore. DOL is part of Descon's chemical business. Since starting production in December 2008, DOL has grown rapidly, becoming Pakistan's market leader in HP and currently the largest manufacturer of HP in the country; supplying consistently to its customers in many industries including textile, food, beverages and mining.
As per available stats, HP producers in Pakistan contribute approximately US 24 million dollars per annum in foreign exchange savings. These savings in foreign exchange will increase as DOL's new capacity comes on line.
Keeping in mind the future market demand, the Company has decided to increase production capacity by 25%, ensuring that supply grows with the demand pattern of the industries the company serves.
"As the market leader, we feel it is our responsibility to keep the market fully supplied and fulfill both the current and future needs of our customers. This expansion will help us in achieving our objective and enable us to maintain our leadership position in the market. We will continue to evaluate the market and continue to expand capacity in line with market growth", said Taimur Dawood, CEO Descon Oxychem.
DOL's name plate capacity at their Lahore facility at the time of commencement of production was 84 metric tons (MT) per day. Subsequently the company was able to debottleneck the plant and improve the chemistry that lead to the increase in capacity to 94 metric tons per day. After completing the announced expansion, DOL will be able to increase their plant's production capacity to 120 metric tons per day.

Copyright Business Recorder, 2018

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