According to IGI Securities, Pioneer Cement Limited (PIOC) has notified the exchange that the Company has successfully enhanced the capacity of its cement grinding mill to 345 tons per hour. It is expected the Company to capitalize PKR 900mn-1,000mn as operating fixed assets in this respect.

The enhanced cement grinding mill capacity will resolve PIOC’s existing cement manufacturing bottlenecks which have restricted it to operate at capacity utilization levels of 79% as against average industry levels of above 95%.

Analyst expects the Company to achieve industry consistent capacity utilization levels of above 95% in FY19 and estimate the installed capacity to contribute PKR 2.10/share towards its bottom-line for FY19.