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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).

APMA Demands Unloading Imported Coal at KPT

To handle imported coal efficiently and to avoid delays, All Pakistan Cement Manufacturing association demands unloading of imported coal at Karachi Port Trust instead of Pakistan International Bulk Terminal.

As reported by The Dawn, shipments face 10 to 20 days delays due to lineup at PIBT. Pressure at the port has surged due to rising demand of the cement in the country due to massive development.
On the contrary, PIBT spokesperson blames importers for non-coordination that result in congestion. He proposed that vessels must be scheduled to avoid choking.

Importers have been paying almost double demurrage since June 2018 when Supreme Court banned unloading of coal at KPT. So to avoid extra cost, importers have been demanding KPT as a substitute to PIBT.

Pakistan’s federal budget 2021/22 benefits the cement industry

Pakistan’s finance minister, Shaukat Tarin, presented a federal budget of 8.48 trillion PKR (US $ 54 billion) from 2021 to 2010 at parliament last week. The government has set a GDP growth target of 4.8%, compared to the expected 3.9% for the next fiscal year. In addition, Islamabad has allocated significant funding to the Public Sector Development Program (PSDP). These indirect incentives are driving Pakistan’s cement industry. Research experts unanimously believe in a neutral to positive budget for the cement industry.

Analysts said the government allocated PSDP to 2,135 billion PKR (highest ever, federal PSDP secured 650 billion PKR last year compared to 650 billion PKR last year, securing 123.5 billion PKR for the state) to drive national development. He said it should drive cement demand.

In addition, the National Highway Office allocated PKR114bn vs. PKR118bn in 2009 (actual spending on 10MFY21 set on PKR79bn, according to the Planning Committee, suggests a 44% increase in allocation this year). In addition, a PKR300bn subsidy has been allocated to the Naya Pakistan Housing Authority, alongside the PKR30bn for the Naya Pakistan markup subsidy, which should stimulate construction demand.

In addition, PKR57bn, PKR23bn, PKR6bn, and PKR14bn are reserved for the Dasu, Diamir-Bhasha, Mohmand, and Neelum Jhelum dams, and working with those colonies should significantly increase cement demand.

The Association of All Pakistan Cement Manufacturers (APCMA) has not yet commented on the benefits of financial measures. However, it has appealed to the government to abolish FEDs, reduce other tariffs and taxes, and provide manufacturers with the opportunity to control production costs and further optimize / expand their factories. This is the government. Similarly, AHCML Research raised the question that tariffs on corporate income tax, fuel, and coal should be reduced to support the cement industry.

Ambuja Cements leads the way in green construction with low carbon, innovative and sustainable products & offerings for its customers

Ambuja Cements is setting industry benchmarks in offering low carbon, sustainable solutions to its customers. Aligned with the vision of LafargeHolcim, the parent company, Ambuja Cements is committed to group-level targets to mitigate the effects of climate change.

Ambuja Cements’ sustainable and innovative product portfolio includes differentiated products for different climatic conditions, as well as low carbon building materials and solutions. By developing these sustainable solutions, Ambuja Cements aims to produce eco-friendly products to ensure a greener tomorrow for the future generations.

Engineered with cutting edge technology – Ambuja Kawach is a specially formulated cement with high-quality water-repellent properties and is a one-of-its-kind product. This product has 33% lower carbon footprint as compared to OPC products. This premium quality solution has been developed through its in-house manufacturing and product innovation efforts. Kawach has been developed to prevent water penetration in the most effective way, resulting in improved durability and life of the houses.

Ambuja Buildcem is an innovative way of using fly ash to produce high strength Portland Pozzolana Cement (PPC) which helps build strong and durable structures. The product aims to conserve natural resources by producing less CO2 and it also helps reduce waste. Another low carbon and environmentally friendly offering is Ambuja Cool Walls, a state-of-the-art solution to the problems posed by clay bricks walls. The blocks of Ambuja Cool Walls are made of pre-cast concrete and have a special heat barrier technology that keeps houses 5⁰C cooler in summer and warmer in winter. It is made of cement and has no natural or added salts and never has the problem of ‘shora’(Efflorescence). Thus, the plaster retains its strength and helps save recurring painting cost.

Neeraj Akhoury, CEO India LafargeHolcim, Managing Director & CEO of Ambuja Cements Ltd, said “We are committed to the net zero pledge of our parent LafargeHolcim and our low carbon product offerings are an important part of this endeavor. Our research and innovation team are constantly developing products which are not only innovative but also responsible and sustainable. We want to provide green living choice to the customers through durable and environment friendly products in India.”

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