Transcript GAS ALLOCATION

EXCELLENCE – FFC’S HALLMARK
SYED IQTIDAR SAEED
General Manager Technology & Engineering
FAUJI FERTILIZER COMPANY LIMITED
November 12, 2008
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
UREA MARKET PARTICIPATION
Others
10%
Year 2007, MeT
Daw ood
10%
Engro
20%
FFC
60%
Total 2007 Urea Offtake: 4.86 million MT
LOCATION MAP
Corporate
Head Office
Marketing H. O.
Plant Site –
Goth Machhi
Plant Site Mirpur Mathelo
FFBL, Bin Qasim
4,030 MTPD
1,740 MTPD
INVESTMENTS
1982
Plant I, Goth Machhi
570,000 MTPY
US$ 307 m
1992
DBN of Plant I
695,000 MTPY
US$ 20 m
1993
Plant II, Goth Machhi
635,000 MTPY
US$ 317 m
1999
Fauji Fertilizer Bin Qasim
997,000 MTPY
US$ 460 m
2002
Acquisition of PSFL,
Mirpur Mathelo
574,000 MTPY
US$ 145 m
2008
PMP, Morocco
375,000 MTPY
US$ 200 m
2009
DBN of Plant III
718,000 MTPY
US$ 40 m
2008
DBN of FFBL
1,288,000 MTPY
US$ 75 m
2009
Wind Power
50 MW
US$ 130 m
VALUE ADDITION
•Value addition of Rs. 20.2 billion in 2007, Foreign exchange
savings of US$ 807 million
Redistribution (million Rs., Year 2007)
67
Government as
taxes
2,201
Provider of capital
5,428
Shahreholder as
dividends
Employees as
renumeration
11,979
659
Retained with the
business
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
million Rs.
REVENUE GROWTH
30,000
25,000
20,000
15,000
10,000
5,000
-
FFC-1
DBN FFC-1
FFC-2
FFC-3
2008
2007
2006
2005
2004
2000
2003
2002
2001
2000
1999
1998
1500
1997
1996
1995
1994
1993
1992
1991
570,000
1990
1989
1988
1987
1986
1985
1984
1983
1982
'000 Metric tons
GROWTH IN INSTALLED UREA CAPACITY
1,904,000
1,330,000
1000
695,000
500
0
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
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
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
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
PRE-ACQUISITION PERFORMANCE
•
•
•
•
•
•
•
•
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
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
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
PERFORMANCE COMPARISON
Parameter
Pre-Acquisition
Average PostAcquisition
Production, MeT
582,000
705,839
Capacity Factor, %
105.0
120.2
Service Factor, %
87.0
92.4
Specific Energy, Gcal/Met Urea
7.84
6.74
Moisture in urea product, %
0.46
0.35
Biuret in urea product, %
1.00
0.86
Fines, %
3.00
0.41
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
Thank You
TOTAL FFC UREA PRODUCTION (MeT)
ACTUAL VS DESIGN (1982-2007)
2,500,000
2,000,000
1,500,000
1,000,000
Actual
Design
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
1988
1987
1986
1985
1984
1983
0
1982
500,000
DAILY PRODUCTION RECORDS
MTPD / (Load %)
Plant I
2,490 / (118.3%)
Plant II
2,368 / (123.0%)
Plant III
2,201 / (126.5%)
PLANT ON-STREAM FACTORS
100
95
90
85
1997
1998
P l ant I
North America
1999
2000
2001 2002
P l ant I I
2003
Wor l dwi de aver age
Europe
Source: Plant Surveys International, USA
PRODUCT QUALITY

Top quality product

Chemical composition (46%
N, Biuret, Moisture)

Physical properties
size, hardness, etc.)

Regular monitoring and
investment to keep our
product quality ahead of
the competition
(Prill
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.
SAFETY AWARDS
Description
Number of Awards Received
Award of Honor
15
First Place Award
5
Second Place Award
4
Award Of Merit
4
Perfect Award
2
Industry Leader Award
2
Outstanding Safety Award
2
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 inhouse training on a variety of areas
•
Cross Training: Effective employee training in different
departments
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
TECHNOLOGY & ENGINEERING DIVISION
 Continuous monitoring and improvements of plant
operations
 Major role in expansion of FFC business by
implementing major modifications and new projects




Debottlenecking of Plant I
Plant II
FFBL
Plant III acquisition
 Identify business diversification

Wind Power
 Close liaison with technology suppliers, other plants for
knowledge sharing
QUALITY MANAGEMENT SYSTEM
IMPLEMENTATION
1
ISO-9001:2000
2
ISO 14001:1996
3
OHSAS 18001:1999
Quality Management System,
Certification by Bureau Veritas
Quality International
Environmental Management System
Occupational Health & Safety
Assessment Series
• Routine audits by top-notch accreditation firms
• Reaped significant dividends vis-à-vis quality management
system
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
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
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