One of Pakistan’s leading Cement Manufacturer, Fauji Cement Company Limited (FCCL has announced setting up of a Greenfield cement manufacturing plant of 2.05 million Tons Per Annum capacity at Dera Ghazi Khan, Punjab.
FCCL expects construction on the project to start by June-2021 with a construction period of roughly 2.5yrs, estimated to end by December-2023. FCCL expects financial closure by March-2021 in order to avail State Bank of Pakistan’s TERF borrowing facility at discounted borrowing rate of 5% p.a.
The cost of project is still not finalized but expected around PKR 25 billion. Although company hasn’t announced any Deb-Equity ratio, it is expected that it will be 75:25, with equity portion of the project being financed through internal cash generation.
Fauji Cement presently has an installed capacity of 3.56mn Tons Per Annum at Fateh Jang. After the commissioning of the expanded capacity, total capacity will be increased to 5.61million Tons Per Annum. This will also increase FCCL Market share to more than 9%.
FCCL has taken the decision keeping in view the momentum in cement demand which is expected to increase from the private sector contribution along with increase in public spending on the back of major infrastructure projects.
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