To meet the growing demand for cement in the country, Cherat Cement plans to invest approximately Rs. 34 billion in the establishment of a greenfield facility in Khyber Pakhtunkhwa (KP).
The board of directors has approved the establishment of a greenfield cement plant in DI Khan, KP, according to the stock filing.
The factory will have an installed capacity of 11,000 tonnes of clinker per day, with a total cost of around Rs. 34 billion and a three-year completion date.
In this context, the board approved the acquisition of various assets in DI Khan from a firm for a price of Rs. 1.3 billion, comprising immovable property and mining leases.
Cherat Cement has three manufacturing lines in Nowshera. Since June 2020, it has been producing 4.3 million tonnes of clinker and 4.5 million tonnes of cement yearly.
According to the All Pakistan Cement Manufacturers Association, clinker and cement production increased to 65 million tonnes and 69 million tonnes, respectively, through 25 businesses and 50 manufacturing lines.
Numerous operators, including Fauji Cement, Bestway Cement, Lucky Cement, and Kohat Cement, recently stated their intention to invest in the establishment of new facilities in order to increase their production shares in the cement industry’s rising market.
