Expansion project of Maple Leaf Cement on the track

Maple Leaf Cement Factory Ltd has updated the Pakistan Stock Exchange about progress on it expansion project. According to Company Secretary, Muhammad Ashraf, the company is undertaking an additional dry-process clinker line of 7300tpd. The brownfield expansion at the existing Iskandarbad plant raises grey cement capacity at the plant to 18,000tpd.

Total project cost is estimated at PKR26bn (US$197m), including the impact of the recent devaluation of the local currency. Project cost is being financed approximately 17 per cent through a rights issue, 54 per cent through bank loans and the rest through generation of cash from company operations. 

The project is accelerating as per the plan and 77 per cent of the total project cost, which amount to PKR20bn has been incurred and paid to-date. Letters of credit for equipment supply by FLSmidth  amounting to EUR79.6m has been established through the National Bank of Pakistan. The contract for the civil construction and mechanical erection work has been awarded to Descon Engineering Ltd and 77 per cent of civil work has been completed. Further, 30 per cent work of plant erection was completed by 30 September 2018.

Commercial production from new 7300tpd line is expected to commence within 4Q of the current financial year.