DG Khan Cement of Pakistan plans WHR plants in Punjab

A new waste heat recovery (WHR) plant is being planned by DG Khan Cement to reduce water consumption at its 2.11Mta Chakwal plant in Punjab, according to a report of Intermarket Securities Ltd.

The new plant would include improved technology that requires only marginal water consumption. This would avoid the technical and financial challenges of sourcing water, said the company's management.

The step follows a PKR100m (US$0.74m) fine imposed by the Supreme Court of Pakistan on DGKC for drying up water resources around the Katas Raj Temple, the analyst observed.

The report says that in light of recent events and lower-than-guaranteed efficiency levels from the existing 8.6MW WHR plant at Chakwal, the company has fully impaired the asset (in 4QFY18) and now plans to install a new plant of the same size. The facility is expected to cost PKR2.0-2.2bn and would require a construction time of 13-15 months.