Engro Chemical Pakistan Limited Achieving Growth through DuPont World-Class Safety System
When Pakistani managers of Exxon Chemical in Pakistan bought out Exxon’s shares and started Engro Chemicals in 1991, they had a trailblazing vision for their new venture. But by 2000, it became clear to Engro’s leadership that the safety standards developed for the plants by Exxon prior to the takeover did not align with their vision for a safe and healthy workplace. The decision was made to develop a world-class safety system. Working with DuPont, Engro has transformed itself from a successful in-country business to a world-class leader by matching employee safety with productivity.
The DuPont solution addressed two major areas: process safety procedural changes, and personnel safety, including the adoption of a safety culture. But one of the first priorities was ensuring complete commitment from management to implement changes and adhere to best practices. ‘‘We were very lucky because there was real commitment from the management. They are what you would call trailblazers,” said Asma Kazmi, Project Manager for the DuPont team in Pakistan.
Engro’s improved safety for its employees has grown significantly since the initial implementation of DuPont’s safety programme in 2006/2007. In 2005, the Daharki plant experienced 14 injuries, and 17 in 2006. By 2007, the plant had only 7 injuries, and 4 in 2008 – a 76 percent decrease between 2006 and 2008. The four injuries in 2008 included only one lost workday case, and the total recorded injury rate was reduced to 0.28 that year. Compliance with behavioral safety audits, carried out by DuPont, improved by 42 percent between Q1 2006 and Q2 2009, from 57 percent compliance to 100 percent in 2009.
Along with the positive changes in safety statistics, Engro Chemical Pakistan Limited has posted impressive business growth data. Company profits increased by 34 percent from 2007 to 2008, to US$54 million (after tax). Company management has also acknowledged a more safety-oriented culture on the plant floor.
Engro’s experience with DuPont has proven so positive that the company is implementing its new safety practices for its other operations in Pakistan. Engro also signed an additional three-year contract with DuPont in 2009. DuPont practices will play a major role in the construction and commissioning of Engro’s newest factory, a urea fertilizer plant that will be one of the largest plants of its kind in the world.
Engro Chemical Pakistan Ltd. is the second largest producer of urea fertilizers in Pakistan, manufacturing one million metric tons of urea fertilizer. It also has the capacity to produce 160,000 tons of blended fertilizer. The company currently holds 15% of the urea market share. Engro Corp. was incorporated in January of 2010 and fertilizer business transferred to Engro Fertilizer Limited