Kohat Cement is planning a major investment of Rs. 4 billion in various projects to scale up its production capacity.
The company made an announcement of its board of directors which approved the expansion of the company’s operations significantly, according to the notification issued to the Pakistan Stock Exchange (PSX).
Accordingly, the cement maker will set up a 100 tph low-pressure coal-fired boiler with a net power generation capacity of 6.2 MW at the cost of Rs. 1.2 billion. This will provide an alternate power source along with a reduction in power consumption cost.
The company will set up an additional cement grinding mill of up to 300 tph with the cost of Rs. 1.26 billion. The project will generate operational efficiencies and reduce the power consumption of the cement producer.
The company will develop a BMR of 6700 TPD Grey cement production line for optimization of its pyro process at the cost of Rs. 1.2 billion that will provide fuel and power efficiencies while reducing the cost of production.
The board has further approved to secure a plan site in Punjab to achieve the company’s future capacity expansion plans in the province.
In this regard, the procedural exercise will be started off. The company will develop certain investment properties into rental properties to earn returns in the form of rental income which shall further enhance the yield on these investment properties.
The board has allocated an amount of Rs. 500 million in this regard. The cement producer incurred a loss of Rs. 443 million in the closing financial year due to the Covid-19 pandemic that halted construction activities. However, with the expected boom in the construction sector that will push up the demand for cement, the company is working to enhance its operations while bringing efficiencies in the system to operate effectively.