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Kohat Cement

State Cement Corporation of Pakistan (SCCP) established a 1000 TPD Romanian cement line at Kohat in 1984. The Government of Pakistan in open bidding in 1992 privatized the Company.

The new management headed by Aizaz Sheikh (CEO) undertook an extensive BMR program in 1995 funded by proceeds of a public offering and a commercial debt. The capacity of the Plant was enhanced to 1,800 TPD by engaging KHD, a renowned German Company

KCCL has been in expansion mode since then and timely converted to coal firing, established a white cement plant of 450 TPD production capacity, set up a new grey cement line of 6,700 TPD capacity and also established a standby power plant of 22.4 MW capacity.

Kohat Cement returns to profit in 3Q

Pakistan’s Kohat Cement has posted a net profit of PKR1.059bn (US$6.92m) in the quarter ending 31 March 2021, compared with a PKR381.08m loss in the same period last year.

Total sales for the period advanced 163 per cent YoY to PKR6.71bn against PKR2.55bn in the 3QFY19-20. Record high industry dispatches and an increase in the company’s production capacity along with higher domestic retention all contributed to the overall growth during the period.

For the nine-month period ended 31 March 2021, the company recorded a net profit of PKR2.53bn compared with a PKR283.3m loss in the year-ago period.

Source : CEMNET

Forestalling uptick in construction, Pakistan’s cement manufacturer plans expansion

Expecting a surge in construction activity and a rise in demand for construction materials, one of Pakistan’s leading manufacturers of cement Maple Leaf Cement Factory Limited is planning to increase its capacity.

As per Bloomberg, the company is considering enhancing its production capacity by 7,000 tons a day, and the proposal is in the final stages.

Maple Leaf Cement Factory Limited set up in 1960 as a public limited company. It is part of the Kohinoor Maple Leaf Group, with Kohinoor Textile Mills Limited as its holding company. The company seeks to take advantage of the recent government-announced construction package, which aims to uplift the economic activity and aid the economy to recover during Covid-19.

Just days ago, a number of cement manufacturers announced to increase their cement production, Kohat Cement Company Limited (KOHC) announced that it would be setting a multi-billion rupees cement manufacturing plant in Punjab.

As per the company statement, the Board of Directors of the company has approved the setting up of 7000-10000 TPD Cement Manufacturing Plant.

Furthermore, Fauji Cement Company Limited (FCCL) also informed that it has decided to invest in additional cement capacity.

The company has approved the setting up of Greenfield Cement Manufacturing Plant of 2.05 million tonnes per annum at Dera Ghazi Khan, Punjab.

It is pertinent to inform that Maple Leaf Cement saw a 5 percent increase in sales revenue during 1QFY21 year on year. This was a direct result of increase in sales price as a result of growing demand; the latter in turn was a result of growth in the construction sector.

Source: BR

Kohat Cement to set up cement plant in Punjab

Kohat Cement Co Ltd has announced that its Board of Directors have approved, subject to all regulatory approvals, setting up a 7800-10,000tpd cement manufacturing plant (along with 8-10MW waste heat recovery and 25MW coal-fired power plants), in Khushab, Punjab, Pakistan.

According to a company notification to the Pakistan Stock Exchange (PSX), the management has estimated cost of the project at PKR30bn (US$187.4m), which will be financed through a mix of debt and equity. It is expected that construction and installation of the plant will be completed in 2-2.5 years.

Kohat Cement Co has also announced its financial result for the 1H20-21 (July-December 2020) today, wherein it reported earning of profit after tax of PKR1.47bn compared to PKR97.76m in the same period of last year. The apparent reason for the increase in profit is the increase in sales, which rose to PKR11.10bn from PKR6.02bn during this period

Kohat Cement plans to set up a Greenfield cement plant in Punjab

Kohat Cement (KOHC) conducted its corporate briefing on 26th Nov’20 to discuss the financial performance of 1QFY21, its future prospects, and strategy.

To highlight, KOHC witnessed a whopping 5.75x increase in net profits to Rs 507 million for the quarter ended September 2020, compared to the profits of Rs 88 million earned in the same quarter last year.

Sharing their insight on the latest performance, the management of the company attributed this increase in profitability to robust local demand and better retention price. The top line of the company depicted a jump of 73% YoY owing to a 71% YoY increase in offtake to 905k tons and a recovery in retention prices.

As per the key takeaways covered by BMA Capital, the company is planning to set up a 100tph Low-Pressure Coal Fired Boiler Power Plant with a net power generation capacity of around 16.2MW at an estimated capital expenditure of PKR 1.04bn that is expected to achieve COD by 4QFY22.

Aiming at cost efficiency enhancement, the company is also undergoing the optimization of the pyro process of Line 3 to reduce fuel and power costs that are expected to achieve Cod by 2QFY22 at an estimated outlay of PKR 1.2bn.

It was further informed by the management that the company is setting up a vertical mill which is likely to cost PKR 1.26bn. The current grinding mill is a ball rolling mill at KOHC while the newest technology is vertical rolling mills which are more energy-efficient and provide a better quality output, highlighted by Fortune securities in its report.

Talking about its expansion plans, the management spoke that the company is securing a site in Punjab (North) for setting up a Greenfield cement plant and has applied for NOC. As per the management, the capacity of the line would be approx. 7.5k – 9.0k TPD with a projected cost of PKR 25-30bn. The project is expected to be financed through 60% Debt and 40% Equity, BMA research added.

Going forward, the management expects cement demand growth to remain healthy in the upcoming years. The company is foreseeing an annual growth for North Zone at 13.7% with capacity utilization of around 79%.


source: Mettisglobal

Kohat Cement Co announces US$21.67m expansion programme

Kohat Cement Co Ltd (KOHC) in Pakistan announced a big expansion programme in the north of the country at an estimated cost of PKR3.5bn (US$21.67m). KOHC will implement three projects at the plant site in Kohat in Khyber Pakhtunkhwa.

The company is setting up a 16.2MW coal-fired boiler at an estimated cost of PKR1.04bn. This will result in energy cost savings and availability of other power sources, the company believes. KOHC is also to undertake construction of a 6700tpd production line (Line 3) at PKR1.20bn. In addition, the company plans to establish an additional grinding mill of 300tph, incurring a capex of PKR1.26bn.

The Board of Directors have also envisioned procurement of a site in Punjab province for a potential expansion in the future and has authorised the management to obtain necessary No Objection Certificate from the concerned provisional department.

Lesser sales hit profit of Kohat Cement in 1HFY19-20

Kohat Cement Co Ltd (KOHC) has reported a YoY drop of 93.6 per cent in profit for the half year ended 31 December 2019. It reported a profit after tax of PKR97m (US$0.62m) compared to PKR1.526bn in the corresponding period last year.

The fall in profit is attributed to a decrease in sales, which fell by 28.2 per cent to PKR6.021bn during this period from PKR8.391bn in the year-ago period. It also reported a distribution cost of PKR30m against PKR43m in 1HFY19-20l, while administrative expenses stood at PKR116m compared to PKR127m in corresponding period last year.

Kohat Cement Factory is situated at Rawalpindi Road, Kohat, in the Khyber Pakhtunkhwa province of Pakistan. The plant has a cement capacity of 5.017Mta.