Civil works on the project will begin in January 2006, while it would start production of CAN and NP at the end of next year.
Briefing the journalists after the signing of the memorandum of understanding on Monday, Fatima Group Chairman Mian Fawad Ahmad Mukhtar said that this factory would help in saving the foreign exchange worth of rupees seven billion, which was being spent on the import of fertilisers.
He said initially 1.24 million tonnes of fertilisers per annum would be produced at the plant.
He said that China National Chemical Engineering Corporation (CNCEC) had provided financial and technical assistance for this project, which was doing business in petro-chemical, oil refinery, fertiliser, power, rubber, fine chemical, mine, textile, metallurgy, environmental protection and infrastructure. It possesses the assets of 7.2 billion yuan.
He further said that an agreement for the supply of gas from Maripur gas fields had also been inked with the government. He said that the production capacity of this plant would be 1.4 million tonnes.
CECEC President Ke Ning Jin was also present at the briefing.