Pakistan: Mian Mansha's DG Khan Cement Ltd plans to build a US$300m plant near Karachi as economic growth boosts demand. This marks its first plant build since 2007. The new plant near Hub, west of Karachi, will produce 2 - 2.5Mt/yr of cement. Construction is targeted for completion late in 2018. The plant will be financed 40% through internal cash and the rest through debt, said Niazi.

"There will be a shortage domestically in three years if there is 10%/yr growth in demand," said CFO Inayat Ullah Niazi. DG Khan's two cement plants have operated near full capacity for the past two years. Pakistan's output is projected to expand by 43% in the year that ends on 30 June 2015 and 47.5% in the following fiscal year.

DG Khan Cement announced a net income of US$33.3m for the first six months of its financial year, which ended on 31 December 2014, up by 27% compared to US$26.2m in the same period of 2013. The company's earnings surged by 93% quarter-on-quarter to US$22m during the second quarter of its financial year. With stable off-take and prices, revenue increased by 2% year-on-year to US$124m during the first half of the fiscal year because of an improved sales mix. Revenues jumped by 18% quarter-on-quarter to US$66.8m during the second quarter.
"The earnings were significantly above our estimates due to higher-than-estimated other income and lower-than-expected taxation charges," said DG Khan.