Engro Asahi Polymer and Chemicals Limited Engro Asahi Polymer & Chemicals Limited (EAPCL or the company) is a joint venture between Engro Chemical Pakistan Ltd. (ECPL), an IFC client company who is Pakistans second largest fertilizer company and Mitsubishi Corporation (Japan), each with an 80% and 20% shareholding, respectively.  EAPCL is the only PVC manufacturer in Pakistan with a capacity of 100,000 tons per annum (tpa) and its operations are located at Port Qasim in Karachi. Its plant was commissioned in November 14, 1999 and IFC assisted in the financing of this plant.  The project consists of a production capacity increase and backward integration for EAPCL. Specifically, this entails:   - construction of a new, second plant to produce an additional 50,000 tons per annum (tpa) of PVC, increasing EAPCLS capacity to 150,000 tpa;  - the dismantling, shipping and re-construction of a second-hand plant from the US to produce ethylene dichloride (EDC) (capacity of 230,000 tpa) and vinyl chloride monomer (VCM) (capacity of 204,000 tpa), the primary raw materials for the PVC plants; - the construction of a new chlor-alkali plant which will produce caustic soda (capacity of 106,000 tpa) and chlorine (capacity of 94,200 tpa), the latter being a primary raw material for the VCM production; and  - utilities infrastructure.    This facilitys primary role will be to provide the chlorine necessary for EAPCLs VCM production, a primary raw material for PVC; caustic soda will also be produced as a saleable product as part of the manufacturing process. The project is estimated to cost $221 million. The developmental impact of the existing operations would be enhanced by this investment.  This backward integration will enhance the long-term viability and competitiveness of an important Pakistani company in the cyclical petrochemical industry allowing it to better compete against imported PVC.  EAPCL is the only producer of PVC in Pakistan and since its inception has had a significant catalytic effect on investment in smaller scale, downstream processing capacity, notably for piping and construction applications.  The country has since seen an increased use of PVC in agriculture, particularly for drainage purposes which has made substantial contribution to agricultural productivity and introduction of micro-irrigation, resource saving and reversing long run declines in water quality and agricultural land management.  Given the impact of the existing operations, the PVC expansion and strengthening of the companys position, through its backward integration, will serve to continue these positive impacts on the market.  The longer tenor of the IFC loan will help improve EAPCLs cash flow during the trough periods, while allowing it to make the investments required to maintain efficient and competitive operations.  This same factor proved critical to the Company for the first IFC investment, particularly during the down cycle years of 2001-2002 where the Company had experience shrinking margins.    Lastly, the project will help generate additional employment as the new facility is expected to employ an additional 200 direct hire manpower.  Moreover, the new caustic soda facility is expected to generate substantial employment in the salt industry, a key raw material for the production of caustic soda and chlorine.  As the salt industry is quite labor intensive, this new plant is expected to generate the need for an additional 100 direct employees in the salt business.