Fauji Cement Company Limited (FCCL) announced the successful commissioning of the third line of cement manufacturing at its Nizampur site in Khyber Pakhtunkhwa.
As per a statement released by the Pakistan Stock Exchange (PSX), the company said it “has successfully commissioned the 3rd line of cement manufacturing on October 27 2022, having production capacity of 6,500 tons per day of clinker, at its existing location in Nizampur (Village Kahi), District Nowshera, Khyber Pakhtunkhwa”.
With this expansion, the company's cement production capacity has increased to more than 8.4 million tons per annum, it said, adding that the project has been completed within the planned time and cost.
Fauji Cement expansion will make it Pakistan’s 3rd largest cement manufacturer
FCCL is undertaking two major expansions in its North region, making the manufacturer the third-largest cement maker in Pakistan.
The company’s top officials disclosed the development in a corporate briefing held on October 18 to discuss FY22 financial results and future outlook.
FCCL is expanding its Nizampur site in Khyber Pakhtunkhwa and its DG Khan site in Punjab, said Topline Securities, which participated in the briefing session.
The 2.05mn tons of Nizampur expansion is expected to come online in 4Q2022. The total project is expected to cost Rs27 billion where Rs17 billion is financed through debt; 58% Long Term Financing Facility (LTFF) and Temporary Economic Refinance Facility (TERF) and 42% Short-Term Financial Assistance (STFA) and Rs10 billion through equity.
Furthermore, expansion of 2.05mn in DG Khan is expected to come online in 3Q2024, said Topline Securities.
The project cost would be Rs32.4 billion where Rs20.4 billion will be financed through debt (44% LTFF and TERF and 56% STFA) and Rs12 billion through internal cash generation.
Earlier this week, business leaders expressed concern that the construction sector is facing serious challenges due to increase in cement price by Rs30 per bag as the price of one bag of cement has already exceeded Rs1,000.