Soda Ash

54

ICI Pakistan Limited Annual Report 2011

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.

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
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.

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.

Ali A Aga
Vice President
Soda Ash Business

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.

ICI Pakistan Limited Annual Report 2011

55

First solar geyser at Soda Ash site

Glass, one of the many uses of Soda Ash

Market Overview
Global 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 Development
Our 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 Year

To 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.

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

56

ICI Pakistan Limited Annual Report 2011

Celebrating Teacher's Day at Winnington School

Winnington Hospital achieved multiple milestones during the year

Challenges
The 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.

Future Outlook
2012 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.

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.

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

ICI Pakistan Limited Annual Report 2011

57