- Company says total production capacity now stands at 15.3 million tons per annum, up from 12.15MTPA
Lucky Cement Limited (LUCK), one of Pakistan’s top cement manufacturers, said that it has successfully completed the construction of an additional line of 3.15 million tons per annum (MTPA), under its ‘Brownfield Expansion’ project.
In doing so, the company, also involved in power generation, automobiles, chemicals, pharmaceuticals and mobile phone assembling through its subsidiaries, maintains its rank as the largest manufacturer and exporter of cement and clinker in the country, it said in a notice to the Pakistan Stock Exchange (PSX) on Thursday.
“We are pleased to inform that construction and installation work with respect to the Brownfield Expansion of the additional line of 3.15 MTPA at our manufacturing site at Pezu, Khyber Pakhtunkhwa has been successfully completed within the planned project timelines.
“The new line is now operational and production of clinker has commenced from December 22, 2022,” read the notice.
The company informed that after the latest expansion, the total production capacity of the company (North and South plants included) now stands enhanced to 15.3 MTPA from the previous capacity of 12.15 MTPA.
“Post the successful completion of the aforesaid Brownfield Expansion, LUCK holds its rank and prominence as the largest manufacturer and exporter of cement and clinker in Pakistan,” it said, adding that its overall cement manufacturing capacity, including facilities located in Iraq and the Democratic Republic of Congo, now stands at 19.7 MTPA.
Back in February 2021, Lucky Cement, citing an increase in domestic demand on the back of uptick in construction projects, had decided to enhance its production capacity at the Pezu Plant by 3.15 million tons per annum.
“The construction work on the project is expected to commence within the current financial year and is expected to have a construction period of 1.5 to 2 years,” the company said back then.
However, the expansion comes at a time when the economy is facing a slowdown, also reflected in a decline in construction activity, leading to a drop in cement sales as well.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), local cement despatches by the industry during the month of November 2022 were 3.862 million tons compared to 4.125 million tons in November 2021, a decline of 6.38%.
Meanwhile, export despatches also declined by a massive 78.76% as the volumes reduced from 695,779 tons in November 2021 to 147,757 tons in November 2022.
The APCMA said the uncertain political situation prevailing in the country, and its economic impact resulted in sluggish demand.