In a cement sector update, MS Research has stated that four companies in Pakistan are expected to add extra capacity in FY22-23, lifting the current 70Mta of capacity by 11.7Mta by end March 2023.
According to market sources and company announcements, Bestway Cement’s (BWCL) greenfield expansion of 2.2Mta in Mianwali, Punjab, and Fauji Cement’s (FCCL) 2Mta brownfield expansion in Nizampur, Khyber Pakhtunkhwa, have recently commenced trial operations. As both plants are located in the north, they will likely try to capture new capacity-based market share in that region.
According to the analyst, brownfield expansions for Lucky Cement (3.2Mta) and Maple Leaf Cement Factory Ltd (MLCF) (2.1Mta) are also expected to come online during the ongoing quarter. In addition, a 2.2Mta brownfield expansion of BWCL is scheduled to start commercial operations in 3QFY22-23.
Post-expansion, Lucky Cement's capacity would increase from 11.7Mta to 14.9Mta, BWCL's from 9.9Mta to 14.3Mta, while that of FCCL would increase from 6.2Mta to 8.2Mta and MLCF's from 5.7Mta to 7.8Mta.
