Trade Chronicle Nov - Dec - 2020 issue

TRADE CHRONICLE
Punjab government approves cement plants in Punjab
Province of Pakistan
The Punjab Chief Minister Sardar
Usman Buzdar has approved setting
up five new cement plants by the
private sector in Punjab Province at an
estimated investment of PKR 150bn to
PKR 200bn. The winners’ names are
yet to be disclosed officially, but market
believes approval was given to LUCK,
DG Khan, PIOC, KOHC and FCCL.
Earlier, the cement industry in Pakistan
expects double-digit growth in demand
of 12 to 14 per cent for the current fiscal
year. The industry assumption based
on factors mainly driven by (i)
private sector demand propelled
by government incentives and
low-interest rates, (ii) CPEC
related construction, and (iii)
construction of dams. The
management of Cherat Cement
Company said that the existing
player’s capacities are so large
that the brownfield expansion is
unfeasible for several reasons,
including marketing strategy
and space availability at plant
sites. Another point of concern
is that the Greenfield project requires 4
to 5 years’ time horizon.
But the leading cement manufacturers
announced their proposed expansion
programme during several corporate
briefing organized by different research
houses in Pakistan last month.
Pioneer Cement Limited (PIOC)
The Company is assessing different
sites for expansion or a Greenfield
project having capacity 10,000tpd
at PKR35bn. The Company’s
management mentioned that the
existing plant’s surrounding area is also
Balochistan seeks investment in cement sector –
Western Province of Pakistan
The government of Balochistan is
contemplating to invite foreign and
local investment for setting up new
cement plants in the largest province of
Pakistan.
The provincial government through
the Chief Minister Office, Board of
Investment & Trade (BBOIT) is seeking
Expressions of Interest (EOI) in the
form of Concept Notes or Proposals
easy to acquire, but nothing is finalized
yet. The 12MW Waste Heat Recovery
(WHR) plant has commenced its
commercial operations from Oct ‘20
at Punjab. Moreover, 12MW of the
Company’s 24MW coal plant has
become operational, with the remaining
12MW expected to come online by the
end of 2QFY21.
An official of Company informed media
that for expansion of their project, two
public hearings were held last month for
grant of approval for large scale mining
of Limestone and Clay/Shale at Zindapir
Dera Ghazi khan and installation of
cement plant in Punjab. The Company
assured all stakeholders that it would
meet all environmental standards and
instal the latest equipment to achieve
the set standards. Now waiting for
further steps from Governments, the
official replied.
The D.G. Khan Cement Co (DGKC)
The Company is assessing both
greenfield and brownfield expansions.
A Greenfield expansion, having a
capacity of 3.6Mta, and brownfield of
2.1Mta are being considered. DGKC
from interested parties, who wish to
venture into the province by investing
through any mode of investment in
various sectors including cement
industry and mining.
Manager, Investment Promotion and
Investor Facilitation, Tuaha Hassan
Siddiqui informed that we offer all
investment modes, namely sole
venturing, joining venture with local
currently has a total capacity of around
7Mt. The Company is in the process of
installing 10MW WHR, and 30MW coalbased
the power plant in the South,
which is expected to come online by the
end of FY21 and the total cost of the
project will be around PKR9bn.
Kohat Cement Co. Ltd
The Company is expanding by doing
BMR of 100tph on coal-fired boiler
power plant with the net generation
of 16.2MW. It is also setting up an
additional cement-grinding mill of
300tph. These projects will meaningfully
reduce variable cost per ton. Besides,
the management stated that it would
announce greenfield expansion
of capacity 7,500tpd, and it is in
the process of obtaining a NOC
from the government of Punjab.
It is also actively searching for a
site. The total cost of the project
will be around PKR35bn.
Fauji Cement Company (FFC)
The Company is planning for an
expansion of 6,500-7,000tpd, a
Greenfield project as there is
no space is available on the existing
plant site, the Company is applied for
DG Khan location where FCCL is on
top of the list among all applicants and
the final NOC is expected in 3 months.
Cherat Cement Company Limited
Work on installing a 13MW solar
power project of the Company has
been initiated and is expected to come
online in 9 to 12 months’ time. This
project is financed by the loans raised
from Meezan bank, and the cost of the
project is PKR1.4bn.
firms, and public-private partnerships.
Other sectors where the foreign investor
may invest are Agriculture, livestock,
tourism & hospitality, Fisheries/
shipbreaking, health, industrial/
manufacturing education, energy,
waste management etc, he added.
All EOI’s received will be processed on
the 1st days of working of the month,
say an annoucnemnet.
Presently, DG Khan and Attock Cement
have their plant at Hub in Balochistan.
TRADE CHRONICLE - Nov - Dec - 2020 - Page # 18