Cherat Cement Co receives approval for greenfield plant

Cherat Cement Co Ltd (CHCC) has informed the Pakistan Stock Exchange Ltd (PSX) that the Board of Directors of the company, in its meeting held on 24 June 2021, has approved a greenfield cement plant installation at DI Khan, Khyber Pakhtunkhwa Province in Pakistan.

According to Azam Faruque, CHCC Chief Executive, the plant will have an installed production capacity of 11,000tpd of clinker. The project's total cost is estimated to be approximately PKR34bn (US$215.4mn), with completion of the project expected in three years.

In addition, the Board has approved the acquisition of certain assets, including immovable property and mining leases in DI Khan from a company for a price of PKR1.3 bn.

CHCC currently has an installed capacity of 4.5Mta at Lakrai, Nowshera. After the commencement of the announced capacity, the total capacity will be increased to 8Mta.

CHCC cement dispatches increased by 12.9 per cent YoY in 9MFY21, and plant capacity utilisation remained at 88 per cent in 9MFY21 compared to 78 per cent in 9MFY20.