Fauji Cement Company plans Greenfield cement plant in DG Khan

Fauji Cement Company Limited (FCCL) has informed Pakistan Stock Exchange (PSX) that consequent to construction activity picking up and significant spend on infrastructure, expected to continue, the Company’s board of directors has decided to invest in additional cement capacity in the Country.

Accordingly, the Board of Directors of FCCL, in its meeting held on February 19, 2021, has approved, subject to all regulatory approvals, setting up of Greenfield Cement Manufacturing Plant of 2.05 Million Tons per annum at Dera Ghazi Khan. The equity portion of the expansion will be funded through Internal Cash Generation.

The total project cost will be announced after the conclusion of the negotiation with the suppliers and contractors. The project’s construction work is expected to commence within the current financial year and is expected to have a construction period of about 2.5 years. Currently, the Company is targeting financial closed by 31% March 2021,

Meanwhile, FCCL announced its 2QFY21 financial result by posting a profit after tax (PAT) of PKR 905mn (EPS: PKR 0.66), compared to PKR 189mn (EPS: PKR 0.14) during SPLY, depicting a jump of 5x YoY. This took the 1HFY21 earnings to PKR 1,601mn (EPS: PKR 1.16), up by 3x YoY from PKR 482mn (EPS: PKR 0.35) 1HFY20.

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