Meghna Cement on track for mid-2019 VRM start-up

Meghna Cement Mills Ltd says that its expansion project is likely to complete in the mid-2019. The company signed a contract with FLSmidth in 2017 to import equipment for installing a second vertical roller mill (VRM) to increase its capacity to 2Mta at the cement producer's Mongla plant in Bangladesh.

The contract for the VRM has been valued at US$15.7m, according to the 2018 company annual report.

In separate news earlier this month, the company informed Dhaka Stock Exchange that its board of directors has decided to issue preference shares to its existing sponsor directors/directors to maintain the equity.

The company said the board has further decided to issue 25,097,542 shares fully redeemable non-convertible and non-listed preference shares of BDT10 (US$0.119) each to its existing sponsor directors/directors (excluding independent directors). The preference shares will be issued in compliance with regulatory directive as to maintain 30 per cent of the equity of this company held by its board of directors/sponsors, the disclosure added.

In FY17-18, Meghna Cement produced 902,000t of cement compared to 855,000t in FY16-17, representing a 5.5 per cent increase in cement output. 
 
Meghna Cement is the first manufacturing unit of Bashundhara Group and is reportedly one of the largest cement industries in the country producing nearly 1Mta of cement at its plant in Mongla Port Industrial Area, Mongla, Bagerhat, Khulna.