Fauji Cement Company has decided to enhance the production of cement, with a new Greenfield manufacturing plant to be set up in the city of Khyber Pakhtunkhawa, DG Khan in the next two and a half years.
According to the official notification issued to Pakistan Stock Exchange (PSX), the board of directors has decided to invest in the cement plant to tap into the high demand for cement local with the expected boom in construction of housing and infrastructure across the country.
The proposed plant will enhance the cement manufacturing facility of 2.05 million per annum for Fauji Cement Limited. The company is evaluating the financial cost of the new plant through consultation with suppliers, contractors, and vendors.
However, the plant will be set up through mix financing scheme, including equity investment and debt facility.
The company will embark upon the construction of the new plant in the next financial year, whereas the company is working currently on the financial closure for the project that is expected to be completed next month.
Fauji Cement Limited had a tremendous financial performance in the current financial year. It posted a profit of Rs. 1.6 billion during July to December, which is 231 percent above the profit recorded in the similar period of the last financial year.
The cement industry is set to enter into an expansion phase with the expected growth in housing and construction activities countrywide.
Recently, two major players such as Lucky Cement and Kohat Cement made announcements for enhancing the cement production facility through new plants.