News Desk |
The export of cement from the country witnessed an increase of 32.4 percent during first half of current fiscal year as compared to the same period of last year. Meanwhile, Cherat cement has completed a third production line in KPK.
The export of the commodity increased to $157 million in July-December (2018-19) against the export worth of $118.586 million in the same period of last year, the latest data released by Pakistan Bureau of Statistics (PBS) said.
In term of quantity, the cement export recorded 55.52 percent increase to 3.671 million Metric Ton (MT) during the period under review as compared to the export of 2.36 million MT cement during the same period of previous year.
FLSmidth won an EPC contract for the project. The total project is now estimated at a revised cost of PKR26bn (US$186.1m) including the impact of the recent devaluation of Pakistani rupee.
On a year-on-year basis, the cement export jumped by 78.02 percent to $25.89 million in December 2018 from $14.54 million of cement export during December 2017, the data revealed. The overall export of goods during the first half of current fiscal year recorded an increase of 2.19 percent to $11.216 billion against the exports of $10.976 billion recorded during the same period of last year.
Cherat Cement Company Ltd (CCCL) informed Pakistan Stock exchange (PSX) earlier this week that it has successfully installed and commissioned the third production line, which has a cement capacity of 6700tpd of clinker, along with a waste heat recovery plant at its existing location in Nowshera, Khyber Pakhtunkhwa Province.
During the period, the company also installed Wärtsilä dual-fuel engines, in anticipation of the availability of gas. Currently, a gas pipeline is being laid and the supply of gas is expected soon.
Read more: Govt. not to Interfere in Cement Prices after Analysis: Razzaq
According to Abid Vazir, executive director and company secretary, with this expansion, the cement production capacity of the company has increased to more than 4.5Mta. The project has been completed well before the scheduled time.
Maple Leaf Cement Factory Ltd is also making progress on its expansion project. The company is setting up an additional 7300tpd dry-process clinker production line as a brownfield expansion at the company’s existing site in Iskandarabad, Mianwali, Punjab, increasing grey cement capacity to 18,000tpd.
FLSmidth won an EPC contract for the project. The total project is now estimated at a revised cost of PKR26bn (US$186.1m) including the impact of the recent devaluation of Pakistani rupee. The project cost is being financed approximately 59 percent from debt and 41 percent from equity. Currently, the project is progressing to plan and PKR21bn has been paid to date which is approximately 81 percent of the total project cost.
The breakdown shows that the cement industry attracted FDI of US$24.3m and the construction industry US$287.8m during this period compared to US$29.06m and US$350.90m, respectively in July 2017-Dec. 2018.
From 3 December 2018 onwards, the company has also started phase-wise commissioning test of installed equipment, which is expected to complete by 31 March 2019. Commercial production from the new line of 7300tpd is expected to commence in the beginning of the fourth quarter of the current financial year.
This is despite a fall in FDI(Foreign Direct Investment) in Pakistan’s cement sector. Pakistan received a total foreign direct investment (FDI) of US$1.31bn during the first six months of FY18-19 (July -Dec), compared to US$1.63bn received in corresponding months of last fiscal year. This translates a YoY fall of 19.17 percent, says the State Bank of Pakistan (SBP).
Out of which, Pakistan’s cement and construction industry received foreign direct investment (FDI) of US$312.1m during the six months of FY18-19 (July -Dec), compared to US$380.50m received in corresponding months of last fiscal year. This translates a YoY fall of 18.08 percent.
Read more: Pakistan Cement exports show growth in the Year 2018
The breakdown shows that the cement industry attracted FDI of US$24.3m and the construction industry US$287.8m during this period compared to US$29.06m and US$350.90m, respectively in July 2017-Dec. 2018.