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Dandot Cement Co expects to complete BMR in 3QFY23

Dandot Cement Co Ltd Company Secretary, Muhammad Kamran, recently released a progress report on the Pakistan Stock Exchange (PSX) of Balancing Modernisation of Replacements (BMR) of 504,000t of cement plant at Jehlum in Punjab, Pakistan. Cement production has remained suspended due to the closure of plant operations for BMR activity since September 2019.

The total cost of BMR is PKR5.8bn (US$26.1m) and is likely to be completed by March 2023. The company is also planning to add a 5MW solar power plant. Following BMR, the company’s total clinker production capacity would stand at 1600tpd, officially added.

According to the progress report, most of the plant and machinery arrived at Karachi seaport, and partial payments have been made against the corresponding letters of credit. A transportation contract was finalised to transport heavy plant and machinery from Karachi port to DCCL factory premises. Steel structure drawings have been approved for construction and received from Tianjin Cement Industry Design and Research Institute Co Ltd (TCDRI). The contractor is now starting related activities to carry out fabrication work.

The management has injected equity of PKR215m during the quarter (July-September 2022). While during BMR, an total amount of PKR1.232bn has been invested by the management of the  company. 

A report of the company says that to meet the legal standards and to avoid any adverse action from the Environmental Department, Dandot Cement decided to upgrade the plant through BMR. For this purpose, the company signed a Memorandum of Understanding (MoU) with a renowned cement contractor from China for BMR

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