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EXCELLENCE – FFC’S HALLMARK SYED IQTIDAR SAEED General Manager Technology & Engineering FAUJI FERTILIZER COMPANY LIMITED November 12, 2008.

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Presentation on theme: "EXCELLENCE – FFC’S HALLMARK SYED IQTIDAR SAEED General Manager Technology & Engineering FAUJI FERTILIZER COMPANY LIMITED November 12, 2008."— Presentation transcript:

1 EXCELLENCE – FFC’S HALLMARK SYED IQTIDAR SAEED General Manager Technology & Engineering FAUJI FERTILIZER COMPANY LIMITED November 12, 2008

2 COMPANY INTRODUCTION Fauji Fertilizer Company is Pakistan’s largest manufacturer and seller of fertilizers Incorporated in 1978 as JV of Fauji Foundation and Haldor Topsoe, Denmark. Produces and markets fertilizer products under the premium brand name SONA One of Top-25 companies

3 UREA MARKET PARTICIPATION Total 2007 Urea Offtake: 4.86 million MT

4 LOCATION MAP Plant Site – Goth Machhi FFBL, Bin Qasim Plant Site - Mirpur Mathelo Marketing H. O. Corporate Head Office 4,030 MTPD 1,740 MTPD

5 INVESTMENTS 1982 Plant I, Goth Machhi 570,000 MTPYUS$ 307 m 1992DBN of Plant I695,000 MTPYUS$ 20 m 1993635,000 MTPYUS$ 317 m 1999Fauji Fertilizer Bin Qasim997,000 MTPYUS$ 460 m 2002 Acquisition of PSFL, Mirpur Mathelo 574,000 MTPYUS$ 145 m 2008PMP, Morocco375,000 MTPYUS$ 200 m 2009DBN of Plant III718,000 MTPYUS$ 40 m 2008DBN of FFBL 1,288,000 MTPYUS$ 75 m 2009Wind Power50 MW Plant II, Goth Machhi US$ 130 m

6 VALUE ADDITION Value addition of Rs. 20.2 billion in 2007, Foreign exchange savings of US$ 807 million Redistribution (million Rs., Year 2007)

7 REVENUE GROWTH

8 GROWTH IN INSTALLED UREA CAPACITY

9 FFC PRACTICES AND VALUES Follow highest business ethics and standard of conduct Attain excellence in all areas of its operation Ensure customer satisfaction through superior product quality and technical advice Full compliance to occupational health & safety, and environmental standards Continue to strive for improvement through: Coordinated efforts Feedback Training Employee motivation

10 SUCCESS FACTORS a.Optimal operation of plants to achieve maximum production b.Commitment to Safety c.Emphasis on Human Resource Development d.Highly motivated and dedicated teams e.Technology & Engineering Capabilities

11 SUCCESS FACTORS f.Effective Inventory Management System g.Adequate Maintenance and Workshop Facilities h.Inspection and plant audits i.Plant Reliability Task Force j.Quality Management System Implementation k.Corporate Social Responsibility

12 ACQUISITION OF PSFL – A SUCCESS STORY Acquisition of Paksaudi Fertilizers, Mirpur Mathelo in 2002 Due diligence by FFC professional team Areas in focus were Evaluation of maximum production potential Assessment of plant integrity & reliability Identification of potential for further improvement

13 PRE-ACQUISITION PERFORMANCE Yearly Avg. Performance Prod, MT 582,000 CF, %105 SF, %87 Sp. Energy, GCal/MT Urea 7.8 Product Quality Moisture, %0.46 Biuret, %1.00 Fines, %3.00 Plant reliability Capacity & Service factor Product quality High energy consumption Safety and environmental problems Lack of standard practices in Management, Operation and Maintenance Inadequate facilities Administrative issues

14 MEASURES ADOPTED Technical skills and management practices implemented to bring plant at par with FFC standards Identified short-term and long-term measures to improve performance Investment plans

15 PERFORMANCE COMPARISON ParameterPre-Acquisition Average Post- Acquisition Production, MeT582,000705,839 Capacity Factor, %105.0120.2 Service Factor, %87.092.4 Specific Energy, Gcal/Met Urea 7.846.74 Moisture in urea product, %0.460.35 Biuret in urea product, %1.000.86 Fines, %3.000.41

16 CONCLUSION To be a successful manufacturing company, following areas need attention of entire organization with commitment and support from the top management: Commitment to safety Compliance to systems and procedures Human resources development Implementation of rigorous maintenance & inspection procedures Independent technical monitoring and audit Strong engineering and technical backup

17 Thank You

18

19 MTPD / (Load %) Plant I2,490 / (118.3%) Plant II2,368 / (123.0%) Plant III2,201 / (126.5%) DAILY PRODUCTION RECORDS

20 PLANT ON-STREAM FACTORS North America Europe Source: Plant Surveys International, USA

21 PRODUCT QUALITY §Top quality product §Chemical composition (46% N, Biuret, Moisture) §Physical properties (Prill size, hardness, etc.) §Regular monitoring and investment to keep our product quality ahead of the competition

22 COMMITMENT TO SAFETY Safety is exercised in all spheres of plant operation 15 awards of honor from National Safety Council (USA) since 1982. Two special safety awards on outstanding performance in 1989 and 1993 by the Council for constantly achieving outstanding performance in the field of safety. Other awards as well.

23 SAFETY AWARDS Description Number of Awards Received Award of Honor15 First Place Award5 Second Place Award4 Award Of Merit4 Perfect Award2 Industry Leader Award2 Outstanding Safety Award2

24 HUMAN RESOURCE DEVELOPMENT Hiring at grassroots level to groom employees as per company needs Training Apprenticeship Program: Graduates hired and trained regularly. Only the best continue as company employees. Continuing Skill Improvement: Outside and in- house training on a variety of areas Cross Training: Effective employee training in different departments

25 TECHNICAL TRAINING CENTER Technical Training Centre is the only centre in Asia having a true replica of the Plant for providing training to the employees. Regular in-house training courses as well as for Pakistani industry. Fully equipped to impart training to employees and market its services to other clients from Pakistan and abroad

26 TECHNOLOGY & ENGINEERING DIVISION §Continuous monitoring and improvements of plant operations §Major role in expansion of FFC business by implementing major modifications and new projects l Debottlenecking of Plant I l Plant II l FFBL l Plant III acquisition §Identify business diversification l Wind Power §Close liaison with technology suppliers, other plants for knowledge sharing

27 QUALITY MANAGEMENT SYSTEM IMPLEMENTATION Routine audits by top-notch accreditation firms Reaped significant dividends vis-à-vis quality management system 1ISO-9001:2000 Quality Management System, Certification by Bureau Veritas Quality International 2ISO 14001:1996 Environmental Management System 3OHSAS 18001:1999 Occupational Health & Safety Assessment Series

28 CORPORATE SOCIAL RESPONSIBILITY §Hazrat Bilal Trust Hospital in Goth Machhi §Free medical camps in nearby villages §SONA Hospital at Mirpur Mathelo Free consultancy to local population (male and female doctors) Snake and dog bite cases, 24-hour emergency care Subsidized medicines and Lab facilities §Coronary care unit at Civil Hospital Mirpur Mathelo

29 CORPORATE SOCIAL RESPONSIBILITY - EDUCATION Scholarships for farmers’ children higher secondary school and university education throughout their tenures SONA Public School at a cost of Rs 33 million School adoption program (8 schools so far) Extend support to government high school having 1400 students

30 CORPORATE SOCIAL RESPONSIBILITY - ENVIRONMENT All emissions well within NEQS standards Continuous investment made by FFC Plant II is based on total recycle process Conversion of chromate based cooling water system to phosphate based Renewable energy


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