Cherat Cement Company Limited announced on Thursday that it has approved the installation of a Rs34-billion greenfield plant in Khyber Paktunkhwa that will have a capacity of 11,000 tons per day.

The Board of Directors of the company in its meeting held on Thursday approved the installation of the cement plant in Dera Ismail Khan, KP, the cement maker informed the Pakistan Stock Exchange (PSX).

"The plant will have an installed production capacity of 11,000 tons per day of clinker and the total cost of the project is estimated to be approximately Rs34 billion, with completion of the project expected in 3 years," stated the notice sent to the stock exchange.

The development comes as the country’s cement sector has shown excellent growth in recent period amid a return of business activity. In May 2021 total cement dispatches were recorded at 3.947 million tons against 2.634 million tons dispatched during the same month of last fiscal, showing a growth of 49.86 percent.

Domestic cement dispatches during the month of May 2021 increased to 3.201 million tons from 2.271 million tons in May 2020, depicting a healthy increase of 40.95 percent, revealed the data released by All Pakistan Cement Manufacturers Association.

Cement sector shows excellent growth rate of 49.86pc in May

The company said that that the board has also approved the acquisition of certain assets including immovable property and mining leases in D.I. Khan from a company for a price of Rs1.3 billion for this purpose.

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