Displaying items by tag: Pakistan

Pakistan: Fauji Cement Company (FCC) and DG Khan Cement Company (DGKC) are expected to reveal mixed financial results for the third quarter of the 2024 financial year. FCCL expects a decline in earnings due to increased depreciation expenses from a new cement line, forecasting a quarterly revenue of US$69.7m, down by 3% year-on-year. In contrast, DGKC anticipates improved earnings of US$2.6m, an 84% increase in earnings from the previous quarter, helped by lower repair, fuel and power costs. DGKC's expected revenue stands at US$47.8m, marking a 27% drop. Both companies have noted a sequential decline in local cement dispatches, indicating ongoing market challenges.

Pakistan: The Punjab government has decided to amend the Local Government Act 2022 to remove discrepancies and has called for proposals from all relevant departments. It aims to ensure that all necessary clearances are obtained before approving the establishment of new cement plants, according to Pakistan Official News. Due to water shortages, expansions or new establishments of cement plants must undergo a feasibility study. Committee members will personally inspect sites for the approval of these plants and the Irrigation Department will pursue legal action against any cement plants exceeding prescribed water usage limits.

Pakistan: Attock Cement has announced the successful completion of a new production line at its cement plant in Hub, Baluchistan. This additional line is capable of producing 1.28Mt/yr of cement and commenced operation on 16 April 2024.

Pakistan: The Competition Commission of Pakistan (CCP) has issued a policy note to the Ministry of Science and Technology and the Pakistan Standards and Quality Control Authority, recommending amendments to the Pakistan Standard Specification for cement. It also recommends mandatory disclosure by cement producers of manufacturing dates and expiry dates on cement. The CCP claims that cement absorbs moisture and loses its strength within 4 - 6 weeks under normal storage conditions, or even sooner under adverse weather conditions or high humidity.

The CCP said "The non-disclosure of such material information can mislead consumers and put them at risk of purchasing expired cement, which may compromise the strength and effectiveness of construction projects."

Pakistan: Fecto Cement has appointed Hanif Idress as its chief financial officer. He succeeds Abdul Samad in the post. The cement producer operates the integrated Taxila plant near Islamabad.

Pakistan: Fauji Cement has appointed Anwar Ali Hyder as its chair. He succeeds Waqar Ahmed Malik in the post. The company operates four integrated cement plants in the country. It inaugurated its Shadan Lund cement plant in Dera Ghazi Khan in November 2023 bringing its total cement production capacity to 10.6Mt/yr.

Pakistan: Fauji Cement Company Limited (FCCL) reports that it has become the country's third-largest cement producer by capacity, after expanding its annual production from 3.6Mt/yr to 10.6Mt/yr. The company achieved this through strategic mergers and capacity increases at its Nizampur and DG Khan plants, enhancing its industry presence and pushing into the southern market.

JS Global reports that FCCL's growth strategy includes a strong focus on cost optimisation. Operational efficiency has improved with a shift to more economical fuel sources, such as local and Afghan coal, and increased reliance on self-generated power, now at 60%. The addition of an 11MW solar plant in Nizampur and waste heat recovery plants has boosted FCCL's green energy capacity to 40MW, substantially lowering costs.

This strategy is expected to strengthen financial health in future quarters. Financial results for the second quarter of the 2024 financial year show profits of US$9.7m.

Pakistan: Cement producers despatched 23.9Mt of cement during the first half of the 2024 financial year (1 July – 31 December 2023), up by 9.7% year-on-year from 21.8Mt in the first half of the previous financial year. The Nation newspaper has reported that exports more than doubled, to 3.65Mt from 1.73Mt.

The All Pakistan Cement Manufacturers Association (APCMA) expressed its concern over slow domestic sales. The association said “We are very hopeful that the government will speed up PSDP projects in order to increase cement demand and also give attention to our operational problems. Two major issues currently being faced by the cement industry are related to the new Axle Load regime and Track and Trace system. We have approached the concerned functionaries and expect to get a positive response.”

Pakistan/UK: Power Cement successfully despatched its first shipment of cement to the UK in late December 2023. The company said that the move demonstrates its commitment to global expansion and positions it as a ‘formidable force’ in the international arena.

Export marketing director of Saifuddin Khan said “Entering the European market and exporting our cement to the UK is a testament to the high standards and excellence that Power Cement upholds. Power Cement can customise the packaging as per the requirements of the buyer, and we are excited about the opportunities this presents.” He added “We look forward to becoming a trusted partner in the UK’s construction sector and contributing to Pakistan’s economic progress through foreign exchange earnings.”

Pakistan: Fauji Cement inaugurated its Shadan Lund cement plant in Dera Ghazi Khan on 30 November 2023. The Pakistan Observer newspaper has reported that the plant has a capacity of 2.37Mt/yr and brings Fauji Cement’s capacity to 10.6Mt/yr.