Pakistan: capacity expansion projects reach 27.3Mta

Pakistani cement producers have been announcing capacity expansions at a breakneck pace of late, reports the Business Recorder, which calculates that if all of these are completed the country’s nominal cement production capability will rise by 62 per cent to 72Mta.

The Business Recorder also notes that the rise in capacity is broad-based, with all but the smallest of firms increasing their production potential.

While the three largest producers – Bestway, Lucky and DG Khan – will remain in the top spots after expansion, DG Khan will catch up to other two, growing its share of capacity from nine per cent to 13 per cent. Bestway, which currently has 17 per cent of the country’s capacity, will see that shrink to 14 per cent, falling behind Lucky, which will have 15 per cent.

Cement demand in Pakistan has grown strongly in the current fiscal year from June 2016, expanding at around 10 per cent YoY in the first seven months. This has more than made up for a disappointing export performance, which has seen volumes shrink as Afghanistan and South Africa become less attractive markets.