In order to enhance its capacity production with the increasing demand for cement countrywide, Cherat Cement has planned to invest an estimated amount of Rs. 34 billion to set up a Greenfield plant in Khyber Pakhtunkhwa (KP).
According to the stock filing, the board of directors has approved the installation of a greenfield cement plant in DI Khan, KP.
The plant will have an installed production capacity of 11,000 tons of clinker per day, and the total cost of the project is estimated to be approximately Rs. 34 billion, with its completion expected in three years.
In this regard, the board has approved the acquisition of certain assets, including immovable property and mining leases, in DI Khan from a company for a price of Rs. 1.3 billion.
Cherat Cement has been operating three production lines in Nowshera. It has been producing 4.3 million tons of clinker and 4.5 million tons of cement annually since June 2020.
According to the All Pakistan Cement Manufacturers Association, the production of clinker and cement surged to 65 million tons and 69 million tons through 25 companies and 50 production lines respectively.
A number of operators, including Fauji Cement, Bestway Cement, Lucky Cement, and Kohat Cement, recently announced their plans to make investments for the setting up of new plants to enhance their production shares in the growing market of the cement industry.
Source: Pro Pakistani