Skip to content

Pakistan Cement News

Pakistan’s cement industry is included in those industries which were present even before the partition of the sub continent, like textile Industry in Pakistan. Why this industry has survived so long? The reason behind this is the presence of the raw materials. Pakistan is so rich in possessing very great reserves of limestone and clay which can support the cement industry for another 5 or 6 decades.

Cement factories has a very influential part in making the of socio economic sector of Pakistan  strong.

Pakistan records highest cement sales since 1990

Cement companies in Pakistan have marked their highest sales in the financial year 2020-21 since 1990, according to the data maintained by the All Pakistan Cement Manufacturers Association.

The industry also reported the highest growth of 20% since the fiscal year 2007-8, when it was recorded at 25%. But the quantity sold last financial year by the cement companies was almost double at 57 million tonnes as compared to 30 million tonnes sold in 2007-8.

“The FBR’s amnesty scheme played an important role in the high sales,” said Senior Research Analyst Ali Zaidi. “It helped government bring black money in the tax net.”

The cement sales during the financial year 1990-91 were reported at 7.3 million tonnes. It can be assumed that the recent annual cement sales may have been the highest in the country’s history.

Zaidi added that the cement stocks performed well during the last one year and some cement stocks such as Lucky and Pioneer share prices even doubled.

He added that the demand has been very high from people for houses, which was also propelling construction activity in the country.

But Zaidi says the Naya Pakistan Housing Scheme, which will be focusing on low-cost houses, is yet to begin and the prospects for the construction sector and subsequently for cement demand will remain high owing to it as well as the expected construction of dams.

Meanwhile, APCMA has credited the construction activities under Naya Pakistan Housing Scheme coupled with government initiatives and PSDP allocation for high cement sales.

During the financial year 2020-21, as the total cement dispatches of the country grew by 20% to 57.433 million tonnes from 47.812 million tonnes during FY 2019-20.

“Financial year 2020-21 has been a good year for cement, as demand has grown considerably,” said APCMA spokesperson. “Cement industry is expanding its capacity from 70 million tonnes to around 100 million tonnes with the hope that the demand will increase by 15% annually for the next three years due to an increase in allocation in PSDP, CPEC related projects and housing as well as industrial demand.”

Cement bag price saw an increase of Rs110 last year. The APCMA says it was due to increasing coal and furnace oil prices but analyst Zaidi said that the prices mainly went up due to a high demand that year.

Cement despatches increase by 20.12%, industry shows massive growth in FY2020-21

Construction activities under Naya Pakistan Housing Scheme coupled with strong government initiatives and PSDP allocation pushed cement consumption up by a large extent.
The cement sector posted growth of 12.73 percent in June 2021 as compared to June 2020. Total cement despatches during June 2021 were 5.211 million tons against 4.623 million tons despatched during the same month of the last fiscal year.
According to the data released by APCMA, local cement despatches in the month of June 2021 increased to 4.668 million tons against 3.834 million tons despatched in June 2020, showing an increase of 21.74 percent.
Exports dropped by 31.12 percent to 542,622 tons in June 2021 compared to 787,842 tons exported in June 2020.
Region wise, domestic cement despatches in the North during June 2021 increased by 14.06 percent to 3.859 million tons from 3.384 million tons in June 2020.
Exports from the North massively increased by 337.89 percent to 201,540 tons in June 2021 from 46,025 tons in June 2020.
In the South region, domestic cement despatches increased by 79.35 percent to 808,490 tons during June 2021 from 450,792 tons in June 2020. Exports from South, however, decreased by 54.02 percent to 341,082 tons in June 2021 from 741,817 tons in June 2020.
Robust growth is witnessed during the FY2020-21 as the total cement despatches of the country grew by 20.12 percent to 57.433 million tons from 47.812 million tons during FY2019-20.
During the FY2020-21, local cement despatches witnessed an increase of 20.40 percent to 48.119 million tons from 39.965 million tons from the last financial year of 2019-20.
Exports also increased from 7.847 million tons in FY2019-20 to 9.314 million tons during the financial year 2020-21, showing growth of 18.69 percent.
Region wise, in the North, local cement despatches increased by 18.22 percent to 40.582 million tons during the period of June-July21 from 34.328 million tons despatched at the same time last year.
Exports from the north increased by 30.25 percent to 2.566 million tons in June to July 2021 from 1.970 million tons during the same period last year.
In the south region, domestic cement despatches increased by 33.70 percent to 7.537 million tons during June-July from 5.638 million tons last year.
Exports from the south also increased by 14.82 percent to 6.747 million tons in June-July 2021 from 5.877 million tons during corresponding period last year.
A spokesman of APCMA said that FY2020-21 has been a good year for cement, as demand has grown considerably. Cement industry is expanding its capacity from 70 million tons to around 100 million tons with the hope that the demand will increase by 15% annually for the next three years due to increase in allocation in PSDP, increase in CPEC related projects and housing as well as industrial demand.

Bestway Cement, Reon Commission 14.3MW Solar Plant

Bestway Cement and Reon Energy Limited on Tuesday energised 14.3MW captive solar power project at Farooqia, Khyber-Pakhtunkhwa, a statement said.

The plant is part of around 50MW project deal dispersed across Bestway’s four locations, i.e., Farooqia, Chakwal, Kallar Kahar and Hattar. The deal between Bestway and Reon is the largest distributed energy project in the region to-date. The project is owned and financed by Bestway.

The solar PV project is expected to produce approximately 78,385MWh (megawatt hours) annually. The output energy will be used on-site, resulting in substantial savings for the company in the cost of energy and will significantly reduce the company’s reliance on the national grid, it said.

The energy generated will also cut around one million tonnes of CO2 equivalent emissions over the life of the project, which is equal to the plantation of approximately 2.1 million trees.

Reon, a part of the Dawood Group, is Pakistan’s leading solar and storage solutions specialist with deep domain expertise in project development, financial advisory, engineering, procurement, and construction (EPC), and asset performance management, the statement said.

Bestway Cement is the largest cement manufacturer with more than 11 million tonnes/annum capacity and is among the five largest taxpayers in Pakistan. Bestway Cement Limited is a subsidiary of British company Bestway Group.

Cherat Cement to setup Rs 34 Billion Greenfield Plant in DIK, KP

Cherat Cement Company Limited announced that it has approved the installation of a Rs34-billion greenfield plant in Khyber Paktunkhwa that will have a capacity of 11,000 tons per day.

The Board of Directors of the company in its meeting held on Thursday approved the installation of the cement plant in Dera Ismail Khan, KP, the cement maker informed the Pakistan Stock Exchange (PSX).

“The plant will have an installed production capacity of 11,000 tons per day of clinker and the total cost of the project is estimated to be approximately Rs34 billion, with completion of the project expected in 3 years,” stated the notice sent to the stock exchange.

The development comes as the country’s cement sector has shown excellent growth in recent period amid a return of business activity. In May 2021 total cement dispatches were recorded at 3.947 million tons against 2.634 million tons dispatched during the same month of last fiscal, showing a growth of 49.86 percent.

Domestic cement dispatches during the month of May 2021 increased to 3.201 million tons from 2.271 million tons in May 2020, depicting a healthy increase of 40.95 percent, revealed the data released by All Pakistan Cement Manufacturers Association.

Flying Cement Co slates expansion to complete in 3QFY22

Flying Cement Co Ltd (FCC) announced that its plant expansion in Mangowal, Kushab district of Pakistan’s Punjab province is due to come online in the 3QFY22. The cement plant has an existing clinker production capacity of 4000tpd (Line I) and the company’s Line II project will add a further 7700tpd to take total clinker production capacity to 11,700tpd.

Out of the PKR10.2bn (US$64.8m) total projected cost for the expansion, FCC has already incurred PKR7bn. Taking into account the plant’s total capacity, which will be available in the 2HFY22, the company’s management plans to achieve a utilisation rate of 35 per cent in FY22. It is also expecting to target an eight per cent market share in 3QFY22.

Meanwhile, FCC has informed Pakistan Stock Exchange (PSX) that it has completed installing a new coal-fired captive power plant of 12MW at its site in Khushab and trial operations are expected to be started in July.

In February the company commissioned a 7.5MW WHR system. Line I has a an 17MW energy requirement, while for Line II this is 32MW, resulting in a total energy requirement of 49MW. FCC’s energy sources supply 58.5MW, including load connection from WAPDA (25MW), WHR System (7.5M), furnace oil engines (14MW) and captive power plant (12MW).