Displaying items by tag: Fecto

Pakistan: Fecto Cement plans to bid for the Hattar cement plant owned by Dewan Cement. Abdul Samad, Fecto Cement’s company secretary, said that the company would evaluate the information to be provided by the financial advisor of Dewan Cement for carrying out due diligence in relation to the prospective acquisition of the plant. He added that the sale would be subject to finalisation of commercial terms, completion of due diligence, execution of definitive agreement and receipt of regulatory approvals.

Pakistan: Fecto Cement has appealed to the Islamabad High Court to allow it to continue mining in the Margalla Hills. In August 2016 it had its mining lease cancelled by the Capital Development Authority (CDA) and a fine was issued. This followed an order by the Supreme Court in March 2015 to stop all development and stone crushing activities, according to the Dawn newspaper. In 2013 the Islamabad Capital Territory issued a mining lease that allowed Fecto Cement to carry out stone crushing activities in the area until 2030.

Pakistan: The Capital Development Authority (CDA) has cancelled the mining lease for Fescto Cement and issued a fine against it of US$4m for illegally operating in the Margalla Hills National Park near Islamabad. The CDA has also requested that the local explosives inspector ask the cement producer to remove explosives dumped in the park area and it has asked police to take action.

A report by the CDA says that the cement producer’s 30 year lease was extended for another 18 years by the director of the Industries and Mineral Development department of the Islamabad Capital Territory in June 2012. However, a forestry director raised objections to the extension.

Pakistan: The inauguration of the Dasu dam has reinforced optimism in the local cement industry, which has been banking on the continuous increase in local demand owing to mega construction projects.

The Dasu dam, one of the mega dam projects, is expected to increase cement demand in Pakistan by 1Mt/yr for the next five years. The 4320MW dam will be completed in two phases at an estimated cost of US$4.8bn. Since the Dasu dam is located in the north, the cement for the project will most likely be procured from nearby cement plants. Cement companies like Maple Leaf, Fecto, Bestway, Cherat, DG Khan, Fauji are the most likely to benefit from the dam construction.

Analysts say the construction of big dams like Dasu and Basha will supplement the already improving cement demand in Pakistan. "Dasu dam will add an additional 1Mt/yr of cement demand, which will be significant for the local industries," said BMA Capital analyst Sajjad Hussain. "It will increase the already escalating cement demand in the country."

"The launch of the Dasu dam is important for the cement industry in northern region of the country," said Standard Capital Securities analyst Saad Hashmi. "Other major infrastructure projects that are expected to start soon will further increase cement demand and it may jump 5% in fiscal year 2015."