The Fauji Cement Company Limited (FCCL) has planned to raise its capacity by almost three times to meet the rising demand for cement in the country and stem its skyrocketing prices.
"Fauji Cement Company is contemplating an expansion plan to increase its production capacity from 1.165 million tons per annum to 3.15 million tons per annum," said an official statement sent to the Karachi Stock Exchange (KSE) on Thursday.
"The company is planning to add a new production line of 8,000 tonnes per annum parallel to the existing line, thus, enhancing the capacity to around 10,000 tons per annum," added the statement.
"The meaningful expansion in operational capacity of the plant will reduce the higher demand pressure in the northern part of the country and help stabilise the cement prices," the statement said.
The cement prices last month (April) shot up to an unprecedented level, where it was ranged between Rs 350 and Rs 400 per bag. However, when the government slapped a ban on cement exports to Afghanistan and other countries besides at the same time announced that cement would be imported into the country, thereby the prices began to come down to their previous levels.
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