Maple Leaf Cement Factory Ltd. is planning a capacity expansion by 7,000 tons at a day (almost a third of its current capacity) to tap demand as the economy recovers, Bloomberg reported quoting people familiar with the matter.
The proposal of expansion is in the final stages, and the company is discussing the plan with banks and machinery suppliers, said the report.
Prime Minister Imran Khan’s move to offer tax amnesty for the construction industry and investing in building homes has led to a construction boom and is promoting economic revival.
Related industries are also experiencing a boom. For instance, demand for local building material products is expected to rise 17 percent in the current fiscal year, which is the highest in five years, Insight Securities brokerage company data shows.
Several players in Pakistan’s cement industry are currently expanding their capacity. Lucky Cement Ltd., Kohat Cement Co., Fauji Cement, and D. G. Khan Cement have already started their expansion projects to cater to rising demand in this sector.
Maple Leaf will use internal funds to finance the expansion. It will not be selling additional shares, as per the sources.