Maple Leaf Cement Factory Ltd is making progress on its expansion project. The company is setting up an additional 7300tpd dry-process clinker production line as a brownfield expansion at the company's existing site in Iskandarabad, Mianwali, Punjab, increasing grey cement capacity to 18,000tpd.
FLSmidth won an EPC contract for the project. The total project is now estimated at a revised cost of PKR26bn (US$186.1m) including the impact of recent devaluation of Pakistani rupee. The project cost is being financed approximately 59 per cent from debt and 41 per cent from equity. Currently, the project is progressing to plan and PKR21bn has been paid to date which is approximately 81 per cent of the total project cost.
Letters of Credit for supply and setting up of engineering and equipment of complete cement plant from FLSmidth amounting to EUR79.6m has been established through National Bank of Pakistan. Until the quarter ended 31 December 2018, all the plant related shipments have been received at the project site.
The contract for the civil construction and mechanical erection work has been awarded to a local firm Descon Engineering Ltd. The construction work at site is in full swing and up to 31 December 2018 approximately 91 per cent of civil work has been completed. Furthermore, 62 per cent work of plant erection work had been completed by 31 December 2018.
The contract for the electrical work has also been awarded to Descon Engineering Ltd. The progress on electrical work at site is also up to the mark and progressing as per the plan. Approximately 47 per cent of electrical work was completed by 31 December 2018.
From 3 December 2018 onwards, the company has also started phase-wise commissioning test of installed equipment, which is expected to complete by 31 March 2019. Commercial production from new line of 7300tpd is expected to commence in the beginning of fourth quarter of current financial year.
