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Cement News

Two Pakistan cement plants complete power projects

Attock Cement Pakistan Ltd (ACPL) and Flying Cement Co Ltd (FCCL) have both opened new power plants in Pakistan.

ACPL informed the Pakistan Stock Exchange that its 20MW solar power plant project has been completed at Hub Chowki, Lasbella in Baluchistan. According to ACPL Company Secretary, Irfan Amanullah, the solar power project was implemented at an estimated cost of PKR1.8bn (US$10.19m) in collaboration with lead consultant Attock Energy Pvt Ltd and leading Chinese suppliers.

Meanwhile, Flying Cement Co Ltd also told the stock exchange that it has successfully started commercial operations of its 12MW captive power plant at its site in Khushab district, Punjab. Shahid Ahmad Awan, FCCL’s company secretary, said, “This is a significant milestone achieved by the company in line with its strategic objectives of cost rationalisation and optimisation resulting lower dependency on Pakistan Water & Power Development Authority’s (WAPDA) power supply. Under this, the company is contemplating saving in energy cost up to 30 per cent compared to WAPDA’s surging tariff, which would positively reflect the overall financial performance and profitability.”

Saudi Qassim Cement to hire consultant for 30-MW solar project

Saudi Arabia’s Qassim Cement Company (TADAWUL:3040) will mandate a consulting firm to help with the preparations for a 30-MW solar plant at its site in the northcentral city of Buraydah as the cement maker seeks to reduce its carbon footprint.

The consulting firm will define the scope of work and qualify the competitors for the implementation of the project, Qassim Cement said on Thursday.

The electricity generated by the plant will be added to the current energy sources that power the production site in Buraydah which will reduce its carbon emissions and cut electricity costs. The financial impact of the project is still unknown.

Based in Buraydah, Qassim Cement produces about 4 million tonnes of cement annually. The company will invest SAR 152 million (USD 40.53m/EUR 35.76m) to build a cement mill at its plant in Buraydah with a capacity of 300 tonnes.

The company’s solar project aligns with Saudi Vision 2030. The kingdom, which is the world’s largest oil exporter, announced in October that it targets to reach net-zero emissions by 2060 and became the second country in the region to make such a commitment after the United Arab Emirates.

(SAR 1.0 = USD 0.266/EUR 0.235)

Udaipur Cement Works Ltd wins the Greentech sustainability Award 2021

Udaipur Cement Works Ltd (UCWL), a subsidiary of JK Lakshmi Cement Ltd, has won the Greentech Sustainability Award 2021 under the ‘Excellence in Affordable & Clean Energy’ category.

The company won the award after increasing the share of its renewable energy by more than 50 per cent in the total power mix. UCWL prioritised solar and WHR-based power plants over any short-term gains that might have developed from installing a captive thermal power plant.

The Whole-Time Director of the company, Mr Naveen Kumar Sharma, gave credit to Team UCWL for its collective and sustainable efforts.

Umm Al-Qura Cement Company granted limestone exploration license

Umm Al-Qura Cement Company, Saudi Arabia, announced the issuance of an exploration license for limestone on 28 December 2021 from the Ministry of Industry and Mineral Resources.

The license location is situated between Taif and Radwan.

This license was issued in accordance with the Mining Investment Law issued by Royal Decree No. M/140 dated 10/19/1441 AH and its executive regulations.

The company will carry out the necessary exploratory studies on the new quarry during the statutory period to ensure the availability of the required raw materials.

Qassim Cement to establish new cement mill at Buraydah

Qassim Cement, Saudi Arabia, has entered into a preliminary agreement with the Chinese company, for the engineering, supply and construction of a new cement mill to be installed at the company’s Buraydah cement plant.

The new mill will have a replacement capacity of 300tph.

The agreement includes the supply of mechanical and electrical equipment, including design and supervision of civil works, installations and commissioning test.

The company said in a bourse filing that the implementation period for the SAR152m worth project is 15 months.

Detailed contracts are now being prepared, which are expected to be signed by mid-January 2022.

Fauji Cement Co Ltd signs Rs37,400m syndicated term loan facilities for expansion

KARACHI: The signing ceremony for credit facilities for path breaking expansions by Fauji Cement Company Limited and Askari Cement Limited was held on Monday. Both the companies are part of the Fauji Group and have been in the forefront of infrastructure development in Pakistan.

The expansions are in line with the Fauji Group’s vision to play a role in the economic development and infrastructure footprint of the nation.

The Syndicated Term Loan facilities of Rs 37,400 million from a banking consortium is led by HBL. Other members of the consortium include Faysal Bank Limited, Bank Alfalah Limited, National Bank of Pakistan, Bank of Punjab, Bank Al-Habib, Askari Bank, MCB Bank Limited, Habib Metropolitan Bank Limited, Bank of Khyber and First Women Bank Limited. The credit facilities extended to both the companies have a tenure of 10 years and also include SBP concessionary finance facilities i.e. TERF & LTFF.

The facilities with a combined project cost of circa Rs 60 billion (including a Debt component of Rs 37.4 billion) will be used by the companies to enhance their combined production capacity to 10 million tons per annum making them the second largest cement producer in the tegion. The expansion projects of FCCL & ACL are situated at DG Khan (Punjab) and Nizampur (KPK) respectively, and will play a significant part in the social uplift of the areas along with job creation.

The signing ceremony was attended by Waqar Malik, MD & CEO – Fauji Foundation Group, Qamar Haris Manzoor, Group CEO FCCL & ACL, Muhammad Aurangzeb, President & CEO – HBL, Arif Usmani, President & CEO – NBP, Atif Bajwa, Director & CEO – BAFL, Atif Riaz Bokhari, President & CEO – AKBL, Mohsin Ali Nathani, President & CEO – HMBL and representatives of BOP, MCB, FBL, BAHL, BOK & FWB on 27th December 2021 in Karachi.

The initiative is one of the largest syndicated financing project in the cement sector by a banking consortium in Pakistan achieved in a record time. HBL is acting as Agent, Investment Agent and mandated Lead Arranger. The expansion projects along with potential merger / amalgamation of both the companies will hoist FCCL as one of the largest cement player in Pakistan. The current expansions in our cement vertical, emerges from Fauji Groups vision to play a key role in national development. The companies form part of the Fauji Group.