Pakistan: Cherat Cement to construct new 1.3Mta plant

Cherat Cement will construct a new plant with a cement capacity of over 1.3Mta. The project will cost PKR12bn (US$118m) and take 30 months to deliver. The new works will take the company’s overall production capacity up to 2.4Mta.

Executive director at Cherat Cement, Abid A Vazir, explained that the facility is being built due to the increase in domestic demand, and is also expected to further increase the company’s market share and profitability.

Highlighting financial performance, Yasir Masood informed that the cement industry witnessed a growth of 2.5 per cent in the year 2014.

Explaining the financial performance of Cherat Cement, he informed that the profitability of the company has been on an upward trajectory since 2011.

To finance this project, Cherat Cement has announced issuance of 68 per cent rights shares on the existing paid-up capital of the company, which will be offered at an issue price of PKR25/per share including a premium of PKR15/share. The company is raising approximately PKR1.8bn for the project by way of rights issue.