Dondot Cement Company Ltd factory has closed down completely due to financial difficulties.
The board of directors (BoD) of Dandot Cement Company Limited, in its resolution on October 30, 2019, unanimously decided to close down the factory completely while complying with all relevant laws.
In a notification to the PSX, the company announced that it has been facing various challenges concerning viable operations, adequate liquidity and has incurred huge financial losses in multiple preceding years. The notification added:
Further, the current operations of the existing plant are unable to meet the prescribed environmental standards as stipulated by the law.
It further read that a large amount of fresh capital needs to be injected for a comprehensive balancing, Modernization and Replacement (BMR) of the project to achieve environmental standards, energy efficiency, cost-effectiveness, and automation are required, to make the company financially viable and legally compliant.
It said that the company had no finances of its own and needed to raise fresh capital to invest in the BMR project.
After the relevant finances have been arranged, the project execution will also take more than 12 months, as the current plant needs to be dismantled before new equipment can be installed, stated the notification
This entire process will take an unknown period to complete before operations can resume.