DG Khan Cement to build Pakistan’s largest single clinker production line, company says
- DGKC also exports to neighbouring markets such as Bangladesh, Afghanistan and overseas to Central Africa
DG Khan Cement (PSX: DGKC), one of the country’s largest cement companies, announced on Wednesday that it had established a Letter of Credit (LC) for setting up Pakistan’s largest single clinker production line.
The company shared the development in a notice to the Pakistan Stock Exchange today.
The notice read that the company has “established a Letter of Credit for setting up Pakistan’s largest single Clinker production line of 11,000 tons per day (Brownfield) at Mauza Khofli Sattai, Dera Ghazi Khan Site.”
READ MORE: Top 10 cement companies at Pakistan Stock Exchange as of August 2025
Established in 1978, DGKC is involved in the production and sales of clinker, ordinary Portland cement and sulfate-resistant cement.
It supplies to markets across the country through a dealership network of over 2200 dealers. DGKC also exports to neighbouring markets such as Bangladesh, Afghanistan and overseas to Central Africa.
“The expansion will increase D.G. Khan Cement Limited’s clinker capacity to 10.0mntpa (cement capacity of approximately 10.5mn tons), enabling the company to retain its position as the fifth-largest player in the industry, while lifting its capacity-based market share from 6.1% to 10.6% in the North region,” said JS Global.
“The expansion could be value-accretive for DGKC over the long term if the current momentum in domestic dispatch growth continues; however, capacity utilisation in the North region remained below 50% in 1QFY26 despite the rebound. Furthermore, this will also reduce market share for other cement players in the North,” it added.
Meanwhile, Pakistan’s cement exports are weakening, even as domestic demand continues to show modest resilience.
According to data released by the All Pakistan Cement Manufacturers Association (APCMA), cement exports fell sharply by 26.53% year-on-year in November 2025, dropping to 590,183 tons from 803,258 tons in November 2024.
The fall extends an already worrying trend, following declines of 23%in October and 15% in September.
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