D.G. Khan Cement Co. is aiming to become Pakistan’s largest cement maker by expanding capacity by 12,000 tons a day, reported Bloomberg.
According to Bloomberg, Mansha’s company has sought permission from the provincial government to boost its current facility. Javed Iqbal Malik, a senior economic adviser at Punjab province’s industries department confirmed getting the letter but did not give any other details.
According to data on the cement association’s website, D.G. Khan’s capacity will jump to 10.7 million tons following the expansion, exceeding Bestway’s 10.3 million tons capability.
Currently, it has a production capacity of 22,400 tons per day (6.72 million tons/annum).
The proposed expansion will help D.G. Khan topple Bestway Cement Ltd. as the nation’s biggest producer of the building material. Its capacity addition plan comes as Pakistan’s Prime Minister Imran Khan tries to kick-start the construction sector to increase economic growth and create employment.
The approval process could take 6 to 12 months and a final decision on expanding capacity will be taken after considering the demand and economic situation, Inayat Ullah Niazi, Chief Financial Officer at D.G. Khan Cement said while talking to Bloomberg.
In the year ended June, domestic cement sales dropped for the first time in eight years. They have increased 2.3% to 13.3 million tons in the four months to October.