Chashma Sugar Mills Limited (CHAS), one of the largest sugar mills in the country, has announced to set-up an ethanol manufacturing facility.

The subsidiary of Premier Group shared the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.

“The Board of Directors of Chashma Sugar Mills Limited in the meeting held on March 15, 2024 has approved the incorporation of a new subsidiary company in the name of “Premier Grain Ethanol Limited” for manufacturing, production, formulation, extraction, treatment, blending, refining, purification, distillation, fermentation, reduction, dehydration, rectification, preparation, processing, and sale of various types and grades of ethanol as well as related products/by-products derived from grains as raw materials,” read the notice.

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The company said that the total paid-up capital of the new company will be Rs650.02 million divided into 65.002 million ordinary shares of Rs10 each. “77% shareholding i.e. Rs. 500 million will be contributed by Chashma Sugar Mills Limited and the remaining will be contributed by Directors of the company and other,” it added.

Ethanol is a renewable fuel that can be produced from biomass sources such as corn, sugarcane, and cellulose. It is an important industrial chemical and is used as a solvent, in the synthesis of other organic chemicals.

Ethanol is widely used as a fuel additive and engine fuel and is often blended with gasoline to reduce emissions and dependence on fossil fuels.

Chashma Sugar Mills Limited was incorporated in Pakistan on May 5, 1988, as a public limited company, under the Companies Ordinance, 1984, and commenced its business in marketing year 1992-93.

The company is principally engaged in the manufacturing, production, processing, compounding, preparing, and selling of sugar, other allied compounds, intermediates, and allied products.