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Director of Fauji Cement resigns

Pakistan’s Fauji Cement Co Ltd has announced that Tahir Ashraf Khan has resigned from his position as director of the company, with effect from 1 January 2020.

The company has not yet named a successor for this position, but appointed a new non-executive director in October 2019.

Maple Leaf Cement elects eight directors unopposed

Maple Leaf Cement Factory Ltd (MLCF) has informed Pakistan Stock Exchange (PSX) that its Board of Directors meeting held on 31 December 2019 and eight persons were elected unopposed as directors for the next term of three years commencing 31 December 2019.

The new team comprises Tariq Sayeed Saigol, Taufique Sayeed Saigol, Waleed Tariq Saigol, Danial Taufique Saigol, Jahanara Saigol, Syed Mohsin Raza Naqvi, Shafiq Ahmed Khan and Zulfikar Monnoo.

Cement prices are fluctuating in Pakistan

According to a local research house, cement prices in north of Pakistan have declined from the recent peak of PKR550/bag (US$3.55/bag) (October 2019) and now they have fallen below PKR490/bag in some areas of north Pakistan.

An analyst of Intermarket Securities Ltd attributes this fall to a drop in demand during the winter season as well as reportedly aggravated price competition by Cherat Cement (CHCC), which is trying to sell in other markets than its allocated areas.

According to the report, cement prices in Peshawar, Islamabad, Rawalpindi, Lahore and Faisalabad are hovering in the price range of PKR480-510/bag.

Moreover, in the south, market prices have fallen below recent high of PKR700/bag (Karachi). Price competition followed the recent commissioning of Power Cement’s new capacity in Nooriabad.
However, price competition erupted before commissioning of new capacities of Lucky Cement, Kohat Cement and Pioneer Cement, which are now slated to be online by 3QFY20. Therefore, there is the risk that the present price competition may persist and escalate when new capacities come online, the report concludes.

Clinker exports lead in export during 5MFY19/20

Pakistan overseas export of cement and clinker saw a healthy growth of 21.5 per cent during the first five months of FY19-20 (July-November 2019) to 3.608Mt from 2.97Mt in the year-ago period.

The country exported 1.657Mt of clinker out of a total of 3.608Mt of cement/clinker in 5MFY19-20 as compared to 800,773t of clinker out of total 2.97Mt of cement/clinker in 5MFY18-19, according to All Pakistan Cement Manufacturers Association (APCMA).

Pakistan exported 1.157Mt of cement to Afghanistan, therefore recording a growth of 43.1 per cent during this period.

However, export to India remains suspended since March last year. The exports of cement by sea routes has performed poorly and reached to 793,263t, which translates of fall of 15.3 per cent over five months of last financial year. Total clinker exports stood at 1.657Mt, recording a 100 per cent growth on YoY basis.

According to local experts, though domestic cement sales in the north have improved (11 per cent in 5MFY20) – leading to a one per cent advance in the five-month period – the real growth is driven by clinker exports, which nearly doubled in 5MFY20 compared to the corresponding period last year.

Thatta Cement appoints new CFO

Thatta Cement Company Limited (THCCL) informed the Pakistan Stock Exchange (PSX) on 1 January that Mr Fuad Zakaria Bhuri has been appointed to the position of Chief Financial Officer (CFO) of the company with effect from 1 January, 2020 in place of Mr Shahid Yaqoob.

Thatta Cement operates an integrated cement plant with a capacity of 488,250tpa at Thatta in the Sindh Province of Pakistan.

Lucky Cement successfully completes new line; receives PSX award

Lucky Cement Limited has informed the Pakistan Stock Exchange (PSX) and local authorities that the brownfield expansion for the additional 2.8Mta line at its Khyber Pakhtunkhwa plant in the north of Pakistan has been successfully completed on schedule.

In a bourse filing, Irfan Chawala, Finance Director, stated that the new line was made operational with the start of clinker production on December 30, 2019: “With the addition of this new 2.8Mta line, the total production capacity (including both north and south plants) of the company has now increased from previous 9.35Mta to 12.15Mta”.

PSX: Top 25 Companies Awards
Meanwhile, Mr Muhammad Ali Tabba, Chief Executive Officer of Lucky Cement Limited, accepted the prestigious annual award for top 25 performing company from the PSX, which was presented by Prime Minister Imran Khan last week. The company received this award in recognition for its performance, corporate governance practices, transparency, investor relations, and compliance with the Listing of Companies & Securities Regulations in last two financial years.