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EXCELLENCE – FFC’S HALLMARK

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

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EXCELLENCE – FFC’S HALLMARK

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

  5. INVESTMENTS 1982 570,000 MTPY US$ 307 m Plant I, Goth Machhi 1992 DBN of Plant I 695,000 MTPY US$ 20 m 1993 635,000 MTPY US$ 317 m Plant II, Goth Machhi 1999 Fauji Fertilizer Bin Qasim 997,000 MTPY US$ 460 m Acquisition of PSFL, Mirpur Mathelo 2002 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

  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 • Optimal operation of plants to achieve maximum production • Commitment to Safety • Emphasis on Human Resource Development • Highly motivated and dedicated teams • Technology & Engineering Capabilities

  11. SUCCESS FACTORS • Effective Inventory Management System • Adequate Maintenance and Workshop Facilities • Inspection and plant audits • Plant Reliability Task Force • Quality Management System Implementation • 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 • 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

  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. DAILY PRODUCTION RECORDS

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

  20. 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

  21. 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.

  22. SAFETY AWARDS

  23. 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

  24. 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-housetraining 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

  25. 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

  26. QUALITY MANAGEMENT SYSTEM IMPLEMENTATION • Routine audits by top-notch accreditation firms • Reaped significant dividends vis-à-vis quality management system

  27. 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

  28. 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

  29. 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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