Cement News

Cherat Cement’s Line 1 BMR project to complete in January


Cherat Cement's Line 1 BMR project to complete in January

The balancing, modernisation and replacement (BMR) project of Cherat Cement Co for Line 1 will complete on January 2023. Cherat Cement has stated that works would be completed by January 2023 on the BMR for Cement Line 1 and installing the main crusher at Lakrai village, Nowshera district, Khyber Pakhtunkhwa (KPK) province, Pakistan, according to the latest company report for the period ending on 30 September 2022.

Last year, Executive Director and Company Secretary, Abid Vazir, informed the Pakistan Stock Exchange (PSX) these measures would help improve the operational efficiencies of the plant. The total BMR of cement Line 1 and installation of the main crusher is approximately PKR3.5bn (US$21.8m). The project will be financed by long-term financings obtained from three conventional banks under SBP’s Temporary Economic Refinance Facility (TERF) long-term loans.

Earlier, with the successful launch of Line III for clinker production, which boasts a total production capacity of more than 14,700tpd, the company has significantly enhanced its production capacity to more than 4.5Mta.

Overall the company posted an after-tax profit of PKR1.483bn (US$6.67m) for 30 September 2022.

Future expansion
The company report further adds that because of cement demand in upcoming years, the company has decided to establish its fourth production line, Line IV, in Dera Ismail Khan in KPK as part of its long-term strategic plan. To build the greenfield line, it is in the process of acquiring land and fulfilling other legal requirements. However, Cherat Cement is yet to announce the capacity/cost and is carefully monitoring the situation in the country. The decision to move ahead with the project will be taken once the economic situation improves.

Meanwhile, through paid advertorial in local media, KPK has stated that located in the south of Khyber Pakhtunkhwa, Dera Ismail Khan is considered the centre of Pakistan and is set to become an economic hub of the region and focal point of regional trade flows due to its strategic location, access from the newly-built Kallur Kot bridge and Western Alignment of China Pakistan Economic Corridor (CPEC) route.

Special Assistant to Chief Minister of KPK on Industries/Chairman, Khyber Pakhtunkhwa Board of Investment and Trade (KP-BOIT),  Abdul Karim Tordher, recently visited Dera Ismail Khan. During his visit, he was briefed that US$750m to US$1bn worth of cement plants, including Cherat, would be set up here.

He emphasised that it was the government’s responsibility to provide basic infrastructure facilities to the industries, including electricity infrastructure, road infrastructure, telecommunication infrastructure, etc.

The KP-BOIT has already taken up the matter of road infrastructure improvement with the KP Highway Revenue Authority and the provision of a dedicated 132kV grid station for the Dera Ismail Khan/Paharpur economic corridor.

Published under Cement News



Source link