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cement news pakistan

cement news pakistan

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

Lucky Cement To Buyback 10 Million Shares

Lucky Cement plans to buy back its 10 million shares from shareholders at the face value of Rs. 10 per share.

According to the firm’s financial results, the board of directors has directed the management of the company to carry out the drive of purchasing back its shares from different shareholders. The reason for this transaction is said to be the cancellation of shares.

The purchase back of the shares will have a positive effect on the future financial position of the company including the breakup values of the company’s shares and earnings per share.

It will also provide an opportunity for exit to those members who wish to liquidate their investment fully or partially.

The buyback of shares will continue from the period of September 29 to December 19, this year.

The company will purchase its shares back at the spot or current share price prevailing during the said period in accordance with PSX’s law.

Scholarship programme launched for Lakki Marwat students

Lucky Cement Limited has launched a scholarship programme for the intermediate students of district Lakki Marwat, a statement said.

Under this programme, the eligible students can apply for a full scholarship of Intermediate, where the company will cover the tuition fee expense of the selected students.

This will be the second batch of students who will be able to apply for the intermediate scholarships.

Students residing permanently and holding domicile of district Lakki Marwat can apply for the programme.

The aim of the programme is to make education accessible and affordable for deserving students especially from the rural areas regardless of their financial background.

Continuing with its long-term vision to provide merit-based support for the deserving and less privileged segments of society, the company has granted a number of scholarships to various students at leading universities in Pakistan.

Lucky Cement, in order to empower women through education, has been supporting two leading government girls’ schools in Karachi, which have been transformed into model girls’ educational institutions in collaboration with a non-governmental organisation (NGO).

Earlier, the company launched a series of dedicated scholarship programmes for vocational training, graduate and undergraduate programmes as well as for intermediate.

The annual dedicated scholarship programmes aim to empower rural youth through skill development and education.

Cement export increases 0.59pc in six months

The exports of cement witnessed an increase of 0.59 per cent during the first half of financial year 2021-22, against the exports of the corresponding period of last year. The cement exports from the country were recorded at $143.768 million during July-December (2021-22) against the exports of $142.924 million during July- December (2020-21), according to the Pakistan Bureau of Statistics (PBS). In terms of quantity, the exports of cement however dipped by 9.33 percent by going down from 4,325,060 metric tons to 3,921,554 metric tons, according to the data. Meanwhile, on year-to-year basis, the exports of cement increased by 44.28 percent during the month of December 2021 as compared to the same month of last year. The exports of cement from the country during December 2021 were recorded at $27.776 million against the exports of $19.251 million in December 2020. On month-on-month basis, exports of cement declined by 45.04 percent during December 2021 when compared to the exports of $50.542 million in November 2021, the PBS data revealed.

Pakistan’s Cement makers shifting to alternative energy

Pakistan: A number of cement makers are setting up solar and coal-fired power plants to curtail surging electricity expenses which is a material component of cement manufacturing cost.

From January 2021 till date, manufacturers have also informed the Pakistan Stock Exchange (PSX) about their plans and commissioning of solar and coal-fired plants.

Attock Cement Pakistan Ltd (ACPL) company secretary Irfan Amanullah told Dawn that the Rs1.8 billion 20-megawatt solar power plant had successfully been commissioned from Jan 1 at the existing plant premises in collaboration with Attock Energy (Pvt) Ltd and leading Chinese suppliers.

He said if the cement makers do not invest in alternative energy/power solutions, the cost of making cement would increase by at least Rs60 per 50 kg bag based on the current grid power tariff.

Mr Irfan said manufacturers are investing in clean energy solutions to minimise the cost of cement manufacturing.

Power Cement Ltd (PCL) has also decided to explore environmentally friendly renewable energy solutions without any major capacity expansion.

PCL signed an agreement with Burj Solar Energy Ltd on Jan 6 for procurement of electricity on a fixed tariff (around 40pc lower than the existing grid tariff) for the next 20 years. The supplier will invest by setting up a dedicated 7MW solar power plant at the existing site of the company which is expected to become operational within the next six to eight months.

Flying Cement Company Ltd (FCCL) on Jan 3 announced that it had successfully started commercial operations of 12MW captive power plant (CPP) in District Khushab.

FCCL said the key objective of the CPP is cost rationalisation and lower dependency on Wapda’s power supply. The company is contemplating saving the energy cost by up to 30pc, which would positively reflect on the company’s financial performance and profitability.

In the third week of October 2021, Bestway Cement Ltd (BCL) said it had decided to set up a brownfield cement plant with a capacity of 7,200 tonnes clinker per day at its Hattar Site, District Haripur, Khyber Pakhtunkhawa, along with a nine-megawatt Waste Heat Recovery Plant.

BCL had entered into an EPC agreement with Sinoma International Engineering Company Ltd.

BCL had also decided to set up a 6.4MW off-grid solar power plant at the same site for which an agreement has been entered into with Reon Energy.

DG Khan Cement Company Ltd (DGKCCL) on Sept 10, 2021 said that the company had successfully completed the second phase of installation and commissioning of a 30MW captive coal-fired plant with air-cooled condenser technology at Hub Site, District Lasbela, Balochistan.

The plant is based on a high temperature and pressure reheat thermal system which would generally improve the overall efficiency of the captive power plant. With the completion of this phase, the captive power generation of this project had reached 40MW.

Maple Leaf Cement Factory Company (MLCFC) in August 2021 said the company had signed a contract with plant supplier zero carbon for a 5MW solar plant at the existing plant site in Iskandarabad Mianwali. The Rs450m project is expected to start generation this month.

Power Cement, Burj Solar Energy sign deal to set up power plant

The Power Cement Limited has signed an agreement to set up a 7MW solar power plant at its existing site for the procurement of electricity, a bourse filing said on Friday.

“The company has signed an agreement with Burj Solar Energy (Private) Limited on January 6, 2022 for procurement of electricity on a fixed tariff (around 40 per cent lower than the existing grid tariff) for the next twenty years,” the filing stated.

According to the agreement, Burj Solar will invest by setting up a dedicated 7MW solar power plant at the existing site of the Power Cement, and the plant is expected to be operational within the next six to eight months.

In order to curtail the impact of swelling electricity expense, which is a material component of cement manufacturing cost, the company decided to explore environment-friendly renewable energy solutions without incurring any major capital expenditures, it added.

The rapid growth of solar and wind power offering exponential cost reduction has compelled the industries and businesses to modify their energy consumption mix, as more and more industrial units are opting for distributed power generation to ensure reliability and cost savings.