Nimir Industrial Chemicals approves Rs 3 billion capex for three new projects
Nimir Industrial Chemicals Limited (PSX: NICL) will spend Rs 3 billion on a new palmitic‑acid plant, expansion of its chlorinated paraffin wax and chlorine‑liquefaction facilities, and relocation of an oleochemicals unit to Hub, Balochistan, with benefits expected from FY28.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
NICL’s expansion and new product line boost the chemicals segment, creating a Buy bias for the ticker.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- EconomyPositively affected
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Companies Mentioned
- NICL· Positively affected · Buy bias
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Sectors: Economy — Positive · Buy bias. PSX tickers: NICL. NICL’s expansion and new product line boost the chemicals segment, creating a Buy bias for the ticker.
Full Story
Open on ProPakistani## Board approves Rs 3 billion capital programme
Nimir Industrial Chemicals Limited (PSX: NICL) announced that its board, meeting on 9 September 2026, approved a Rs 3 billion capital expenditure plan covering three major initiatives.
## New palmitic‑acid plant
The company will build a dedicated palmitic‑acid plant, creating a new product line aimed at the animal‑nutrition market, particularly for dairy cattle. Nimir indicated that additional downstream products will be developed for this segment.
## Expansion of CPW and chlorine‑liquefaction capacity
Nimir will enlarge its chlorinated paraffin wax (CPW) facility and the associated chlorine‑liquefaction plant, which supplies the essential feedstock for CPW production. Management cited a sharp rise in domestic demand for CPW following its recent localisation and expects further growth.
## Relocation of oleochemicals plant to Hub
One of the company’s oleochemicals units will be moved from Sheikhupura to Hub, Balochistan. The relocation is intended to strengthen Nimir’s presence in the south, better serve local demand and open export channels via the nearby sea port.
## Timeline and outlook
The benefits from all three projects are projected to materialise from fiscal year 2028 onward, enhancing the firm’s revenue base and export potential.
## Market reaction
The announcement was disclosed to the Pakistan Stock Exchange immediately after board approval, signalling confidence in the company’s growth trajectory and its contribution to the domestic chemicals sector.