Lucky Cement’s production capacity rises to 9.35mln tons

KARACHI: Lucky Cement’s production capacity rose 21 percent to 9.35 million tons a year after the completion of its new plant that aims to capitalise on construction boom along Gwadar port.

“Construction and installation work for Brownfield expansion for the additional line of 1.3 million tons/annum at Karachi plant has been successfully completed,” the cement maker on Monday said in a notice to Pakistan Stock Exchange.

“The new line was made operational with commencement of clinker production on December 12, 2017.”

Last year, Lucky Cement announced its plan to invest $30 million in increasing production capacity keeping in view the growing demand of cement in Pakistan on the back of public and private sector construction projects, as well as mega infrastructure development projects under the China Pakistan Economic Corridor.

Analysts said the expansion decision was stirred by a growing demand mainly in the southern region after fast-track developments in Gwadar Port and a desire to maintain market share after the entry of DG Khan Cement’s 2.6 million tons production line.

Lucky Cement’s market share is expected to jump to 20 percent from the existing 17 percent. The cement maker was recently stripped of its status as the largest manufacturer after the acquisition of Lafarge Pakistan Cement by Bestway Cement Limited.

Cement industry witnessed a 5.4 percent surge in its sales to 40.9 million tons during the last fiscal year of 2016/17. Local cement sales rose 10.4 percent to 36.4 million tons, but exports fell 22.8 percent to 4.5 million tons.

Industry’s annual capacity utilisation reached 89 percent.

Lucky Cement said its production capacity improved after an addition of the new line and upgrade in efficiency of its two north plants.