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Pakistan Cement News

Pakistan Cement News

Cherat Cement kicks off Line 4 greenfield project

Cherat Cement Co Ltd (CHCC), during a financial briefing on 13 September 2021 updated about its planned Line 4 greenfield expansion of 10-11,000tpd at DI Khan, Khyber Pakhtunkhwa province in Pakistan. The completion of the project is expected in three years.

The expansion represents an investment of PKR34bn (US$202.1m). The financing structure includes 70 per cent of the total cost will be debt component and the remainder will be equity. The company has obtained PKR5bn for this capacity addition under the State Bank of Pakistan Long Term Financing Facility (LTFF) for Plant & Machinery (SBP’s LTFF). However, as it does not include the WHR plan, the overall project cost may be higher.

Export to Afghanistan
The management of CHCC has pointed out that although exports from Afghanistan had increased by 34 per cent YoY last year and with the US exit, the administration believes exports will remain buoyant in 2021. However, sea-based exports may face some challenges. The current cement export price to Afghanistan is US$36-40/t.

Financial results highlights
The company posted a profit after tax of PKR3.205bn in FY21, against a loss of PKR1.893bn last financial year. The primary reasons behind the turnaround were robust sales (total dispatches went up by 21 per cent YoY to 5.773Mt with local sales depicting a jump of 21 per cent while exports rose by 19 per cent) and an improvement in retention prices. The management of CHCC has a positive outlook for local dispatches, expecting 10 per cent growth in FY22.

Thatta Cement Co increases Sindh’s capacity

Thatta Cement Co Ltd has completed its increases in clinker and cement capacities at its plant in Makli, Thatta district, Sindh province, Pakistan. The company shared this update with the Pakistan Stock Exchange Ltd about important material information earlier this week.

The company has completed in-house modifications and improvements in the processes of the existing plant. Its technical team has completed the trials and testing process. Due to earlier changes and improvements, the total production capacity of clinker and cement has now been increased from 548,400tpa to 660,000tpa and from 575,820tpa to 693,000tpa, respectively, based on 300 working days per year, said Muhammad Abid Khan, company secretary.

Production and dispatch 9MFY21
During the period under review, Thatta Cement showed commendable performance and achieved significant growth in the local dispatches. Local clinker and cement dispatches of the company rose by 45.3 per cent and 24.1 per cent, respectively, compared with the corresponding period last year.

Moreover, during the period the company produced 244,631t of clinker, representing 59.5 per cent of its clinker capacity, compared with 231,168t, or 56.2 per cent capacity utilisation in the same period last year.

Source : ICR

DG Khan’s Hub plant commences electricity supply to Pakistan grid

DG Khan has connected its upgraded Hub cement plant and power infrastructure to the national grid. The Pakistan Observer newspaper has reported that the facilities generate 40MW of power via a 10MW waste heat recovery (WHR) plant and 30MW coal-fired power plant. China National Building Material (CNBM) subsidiary Sinoma Energy Conservation provided engineering, procurement and construction (EPC) services for both power plants.

Legend of Cement industry “Dr. Abdul Majeed”

Dr. Abdul Majeed legend of Cement industry passed away on 31st August, 2021

BIOGRAPHY

Dr. Abdul Majeed

Dr. Abdul Majeed hails from Eminabad, District Gujranwala and had the privilege of studying at the well-renowned G.N. Khalsa College, Gujranwala and Gorden College, Rawalpindi. He did M.Sc. Technology from the University of Punjab in the year 1952.

He wrote a thesis on “The Role of Special Cements in Middle East” and was awarded Ph.D by the University of Beverly Hills, California, USA.

He started his carrier by joining Associated Cement Companies Ltd. India in Year 1953 at their Wah Cement Works, District Rawalpindi and later at Rohri Cement Works, District Sukkur. In 1974 he was offered a job of H.O.D Quality Control in Saudi Cement Company, Dammam, Kingdom of Saudi Arabia. He returned to Pakistan in 1987 and started to serve as Cement Technologist & Consultant He has experience of more than 50 years of working in different position in Cement Industry, both in Pakistan and abroad. He travelled World-wide for higher training, attending Seminars and share knowledge. He has to his credit; development of special types of Portland cements such as Rapid-Hardening and Oil Well Cements.

He has the privilege of working at Building Research Station, UK, Portland Cement Association, USA and ACC, India. He was one of the delegate to 1st. International Conference; ”Deterioration and Repair of Reinforced Concrete” in the Arabian Gulf held at Bahrain in 1985.

He underwent training at the world renowned establishments of:

➢ M/S. F.L. Smidth & Company A/S, Denmark
➢ M/S. Krupp Polysius A.G, Germany
➢ M/S. Fuller Company, USA
➢ M/S. Halliburton Services, USA
➢ M/S. Associated Cement Companies Ltd. India

He is author of three books on Cement Technology:
• Handbook for Cement Engineers
• Portland Cements Production, Properties and Applications
• Handbook for Engineers

These books are very useful for the personnel working in cement plants as well as in Technical Institutions and Universities

Fauji Cement revenue lift upped.

Fauji Cement Company Limited (PSX: FCCL) was set up in 1992 under the Companies Ordinance, 1984. It is a public limited company, and began operations in the following year, in 1993. The company manufactures and sells various kinds of cement.

Fauji Cement Company initially started with a production capacity of 3,700 tons per day that has grown to 11,000 tons per day. It also has two Waste Heat Recovery Power Plants (WHRPPs) of 12 MW and 9 MW, one set up in 2015 and another in 2018. recently company also announced to setup Greenfield Cement Manufacturing Plant in Punjab.

Read more: Fauji Cement announces to setup Greenfield Cement Manufacturing Plant in Punjab

In FY21 saw improvement. Revenue grew by almost 30 percent in 1QFY21, year on year. As economic activities resumed as lockdowns, eased, demand and prices also picked up. Fuel and power expense is one of the major components of cost. The company managed to reduce these costs during the period by “maximizing its own power generation from its gas engines and solar plants to rationalize the power cost”, as is reflected in cost making 78.4 percent of revenue, compared to 86 percent in 1QFY20. Thus, net margin doubled year on year, to 12.7 percent for 1QFY21.

The second quarter saw revenue higher by almost 15 percent year on year; industry dispatches were 16 percent higher, while company’s dispatches were 9 percent higher. It was subdued due to reduction in exports due to Afghan border closure, whereas for the industry, export dispatches registered a 15 percent growth. The industry as a whole picked up as government announced infrastructure projects and incentives. Thus, net margin stood at 14.8 percent for 2QFY21.

The third quarter saw a 50 percent rise in revenue year on year, while margins, at 14.9 percent cumulatively for 9MFY21 improved due to higher dispatches and improved retentions. Industry demand is expected to grow while rising international coal prices and country’s electricity prices continue to pose a challenge.

Pakistan cement production rises 27% in 12MFY21

International news agency CEMNET reported, The overall output of the Large-Scale Manufacturing Industries Index (LSMI) in Pakistan increased by 14.9 per cent for July 2020-June 2021 compared to July 2019-June 2020, including local cement production, FBS estimated. Industry attributes the increase in production on the back of a boost in local demand by housing schemes.

During the last fiscal year of July 2020-June 2021, Pakistan’s cement production increased by 27.3 per cent, YoY to 49.803Mt compared to 39.121Mt in the preceding fiscal year. The upward trend in cement output was also noted in June 2021 alone, when it rose by 32.4 per cent to 4.666Mt versus 3.523Mt in the same month last year.