Al Furat Co — Babylon (BUS-68007995)

# Template State Owned Enterprises- Company Overviews OCPA - Ministry of Industry & Minerals Note: All currency figures are in 000's of Iraqi Dinars unless otherwise noted. 1. General Information Company Name: Al Furat State Company Sector Chemical Brief Description Production of chlorine, sulfuric acid and other chemicals used locally by oil and electrical sectors, and for water purification. Revenue in 2002 (Iraqi Dinars '000s) 10000000 # of Employees 1730 Annual Employee Salaries & Bonus 3000000 Headquarters Address Musayab Babylon 2. Company Highlights Raw materials (sulfur and salt) inexpensively available through local suppliers. Not overstaffed at 1,700. Growth will require additional hiring. Not currently satisfying local demand. All major plants are operational and raw material supplies are on hand. Started operations in late May after receiving 5mw electricity. Current pricing similar to open market rates. Operating with 25% profit margins (subsidies not yet quantified). Current needs limited to working capital and security. Currently uses mercury cells, needs to switch to membranes for better efficiency. Will cost $3-5M USD. World Bank believes Company should be given ongoing support, including funding for membranes. Allocated $1.5M USD for 2H 2003 operating budget and provided with 5mw off of grid (not clear if this is in addition to 5mw it already receives). 3. Facilities Name Province City Grid Damage % Power Needs Chlorine & Costic Soda Plants (2) Hilla Sadat al-Hindiyah 44 15", 32 40" 15 mw Polypropylene Sacks Plant Food Starch Plant Hashimiya 0.5 mw Value of All Plant & Equipment Before War, and Initial Purchase Dates and Prices for Major Items 4. Products Product Name Unit Measurement Design Capacity Available Capacity 2002 Production 2002 Revenue Sulfuric Acid Tons 13200 10000 8118 Starch Tons 6400 4200 4581 Sodium Hypochlorite Tons 5940 4275 3921 Sodium Hydrixide Tons 7920 6336 5102 Sodium Bisulphite Tons 1500 1500 230 Polypropylene Sacks 1,000 sacks (bale) 37000 34000 27355 Liquid Chlorine Tons 2030 1500 661 Hydrochloric Acid Tons 12200 9000 8928 Ferric Chloride Tons 1000 1000 372 Battery Acid Tons 9000 9000 1575 Description of Importance of Products to Other Iraqi Industries Critical raw materials for a variety of Iraqi industries. 5. Customers Customer Name 2002 Revenue Subsidized (Y/N) Products Sold to Customer and Unit Pricing Power Stations Oil Refineries Water Authority Cement State Companies Polypropylene Sacks Fertilizer State Companies Polypropylene Sacks 6. Suppliers Supplier Name 2002 Purchases Subsidized (Y/N) Products Purchased and Unit Pricing Geological Survey and Mining State Co. NaCl (Salt) Mishraq State Co. Sulfur Syria, Jordan, Europe, Saudi, S. Asia #4 Current Payment Terms From Suppliers 7. Imports & Exports 2002 Import Markets for Raw Materials Syria, Jordan, Europe, Saudi, S. Asia. Products include hydroxide and others. Potential Import Markets in Free Market 2002 Export Markets for Finished Products None Potential Export Markets in Free Market Mgmt believes opportunity exists to export products competitively given advantages of having raw materials (sulfur and NaCl) abundantly available in Iraq. 8. Competition Description of Competitive Situation Market Share Description Not able to satisfy local demand with current capacity constraints. 9. Summary of War Damage & Looting of Property & Equipment Description of Damage Minimal. Current Operating Status Operating on limited basis since May 22. Immediate Property & Equipment Needs To Restart Operations Need membrane cells to improve chlorine and costic soda production. Cost $3M USD. Not necessary to restart, but will vastly improve efficiency. Total Cost to Return to Pre-War Condition