Fauji Fertilizer Bin Qasim Limited (FFBL) announced on Thursday that it has shut down its DAP (Di-ammonium Phosphate) fertilizer plant on December 21 in a bid to manage inventory owing to the demand and supply situation in the market, however, the company said urea plant was operating normally.
In a notice to the Pakistan Stock Exchange (PSX), the company said: “DAP plant has been shut down on December 21, 2022 to more efficiently manage its DAP inventory owing to demand and supply situation in the market”.
Without specifying a timeframe for the shutdown, FFBL stated that planned yearly maintenance work will also be completed in January 2023 during the shutdown period to ensure the plant’s dependability and long-term safety.
“After the annual maintenance is over, the startup of the DAP plant will start depending on the DAP market situation,” it stated.
“Notwithstanding the temporary closure, the company intends to meet the projected DAP demand in the country.
“However, the urea plant is operating normally,” FFBL said.
Incorporated in Pakistan under the Companies Ordinance, 1984, FFBQL is a public limited company, principally engaged in the manufacturing, purchasing and marketing of fertilizers.
The development comes as fertilizer offtake sees a massive decline in recent months in Pakistan. As per data provided by the National Fertilizer Development Centre (NFDC), during October 2022, DAP offtake was 71,000 tons which decreased by 79.1% over October 2021.
