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In spite of its various troubles, the debt-ridden Karnaphuli Fertilizer Corporation (Kafco) is also considering expanding its unit at Chittagong, Bangladesh. Kafco's ammonia-urea plant has a nameplate capacity of 560,000 t/a, which the company is considering increasing to 825,000 t/a via a $50m revamp by Stamicarbon, the technology licensor for the plant. The International Finance Corporation (IFC) is currently working on a financial restructuring of the company, including gas supply agreements and pricing formula, technical service contracts, and offtake agreements with Marubeni and Transammonia. Production was suspended in May last year over gas disputes. Kafco is said to have over $30m in outstanding gas bills, and has still not formally accepted the plant from the constructors.





