Cherat Cement Company Limited (CHCC) has announced that its Board of Directors has approved setting up of a Greenfield cement manufacturing plant of 3.5mn Tons Per Annum at Dera Ismail Khan, Khyber Pakhtunkhwa.

The company expects the project to complete in three years time period with an expected Cost of Rs34bn. Furthermore, in another notice company also approved the acquisition of land and mining leases in D.I. Khan for Rs1.3bn.

Cherat cement currently has an installed capacity of 4.5million Tons Per Annum at Lakrai, Nowshera. After the commencement of the announced capacity, the total capacity will be increased to 8.0mn TPA.

Furthermore, after expansion comes online, the CHCC capacity share will increase to 9.3% based on expected capacities in the future.

CHCC plant capacity utilization remained at 88% till March-2021 compared to 78% in 2020. The new expansion is expected to be a financed mix of Debt and Equity in the ratio 75:25.

Previously, Lucky Cement, Kohat Cement, Fauji Cement, Bestway Cement, and Maple Leaf Cement have announced an expansion in their capacities.

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