DG Khan plans Balochistan plant, Pakistan

DG Khan is expected to begin construction of a new 2.5Mta plant at Hub, located in the Lasbela district of Balochistan, next year, to lift its market share in the south of Pakistan and facilitate exports.

A senior company official told The International News (Pakistan) that it is in the process of finalising vendors for the implementation of the project. In the next phase it will open a letter of credit, the official said, adding that construction work is expected to start in 2015.

Balochistan is expected to see the establishment of industrial and residential estates in the near future as the Gwadar Port is set to become operational in April.

DG Khan has an installed capacity of 4.4Mta of its two plants located in Punjab, in the north, while both plants are operating at about full capacity.

The official said that the plant would help boost DG Khan’s market share in the south of the country (Sindh and Balochistan). The source added that exporting from the proposed Hub plant would incur lower freight charges compared to exporting cement from its plants in the north.