Zia fertiliser incurs loss of Tk 85 cr in a year

The factory suffered a production loss of 1,25,000 tonnes as it remained inoperative for 73 days due to the technical faults.

The production target was 4,20,000 tonnes of urea during fiscal 2005-2006.

A few days into the financial year, the compression tube of the factory blasted with a big bang, keeping the giant factory silent for 20 days. As technical problems occurred frequently after the disruption, the BCIC authorities scaled down the production target to 3,80,000 tonnes.

Sources in the factory said the old machinery and equipment always kept them worried as it might stop rumbling any time.

Faults were detected often in the ammonia plant, cooling tower, compressor tubes and other vital and major equipment as those were old.

An engineer seeking anonymity said daily production came down to 75 per cent of its average capacity after a devastating fire in the ammonia plant in February last year.

The factory is now producing 1200 to 1250 tonnes of urea daily against its capacity of 1600 tonnes. The cost of production is also rising due to old machinery. Raw materials which earlier produced 1600 tonnes now produce 1200 to 1250 tonnes, he said.

The factory could not achieve its production target during 2004-2005 financial year also.

The factory's loss is increasing as urea is sold at below the production cost. The production cost of urea is Tk 5600 per tonne, which is sold at Tk 4800, incurring a loss of Tk 800 per tonne. The total loss on this count stood at Tk 30 crore during 2005-2006 financial year, the sources said.

The factory needs a thorough overhaul immediately to keep it running, they said.