- The D.G. Khan Cement’s manufacturing capacity currently stands at just over 7mn tonnes per annum.
- The expansion would allow D.G. Khan Cement overtake Bestway Cement, as Pakistan biggest cement maker.
Pakistan’s cement maker D.G. Khan Cement is aiming to become the country’s largest cement maker by expanding its capacity to 12,000 tonnes a day.
The company owned by business magnate Mian Muhammad Mansha’s company has sought permission from the provincial government to boost its current capacity. As per Javed Iqbal Malik, a senior economic adviser at Punjab province’s industries department, confirmed getting the letter. The advisor, however, didn’t provide any further details.
At present, D.G. Khan Cement’s manufacturing capacity stands at just over 7mn tonnes per annum, and with the upcoming expansion, capacity will increase by over 52 percent to 10.7mn tonnes per annum. The expansion would allow D.G. Khan Cement overtake Bestway Cement, which at present is the largest cement producer in the country with a capacity of 10.3 million tonnes per annum.
The decision to enhance capacity comes after Prime Minister Imran Khan Monday said the present government had given a lot of importance to the sector, which would help realize the project of five million housing units.
The prime minister said the promotion of construction sector was the government's foremost priority, adding since around 40 industries were allied with it, the promotion of construction sector besides developing those industries would also create job opportunities for youth.
Meanwhile, the report said that the approval process could take months and a final decision on expanding capacity will be taken after considering the demand and economic situation, said Inayat Ullah Niazi, Chief Financial Officer at D.G. Khan Cement.
Back in September, D.G. Khan Cement announced a 10 percent final cash dividend to shareholders while the company's board of directors have suggested an increase to its equity investment in Hyundai Nishat Motors from Rs850 million to Rs1 billion in addition to extending its working capital loan of Rs1 billion to Nishat Hotels.