Kohat Cement Company plans to set up cement plant in Punjab

Kohat Cement Company Ltd in Pakistan announced that Board of Directors of the Company in its meeting held today have approved, subject to all regulatory approvals, setting up of 7,800 ~ 10,000 tpd cement manufacturing plant (along with 8 ~ 10 MW Waste Heat Recovery and 25MW Coal-Fired Power Plants), in Khushab, Punjab.

According to a notification of the Company to Pakistan Stock Exchange (PSX), the management has estimated cost of the project at PKR 30 bn, which shall be financed through a mix of Debt and Equity and it is expected that construction and installation of the plant shall be completed in 2 to 2.5 years.

The Company has also announced its financial result for the first half of 2020-21 (July- December). It reported earning of profit after tax of PKR 1.47bn compared to PKR 97.76m in the same period last year. The apparent reason for the increase in profit is the increase in sales that went up to PKR 11.10 bn from PKR 6.02bn during this period.

According to IMS Research, this is the second expansion announcement by the industry (first being LUCK). They believe that other cement companies in our coverage will also announce an expansion by March 2021. The analyst expects that strong cement demand growth and the recent surge in prices will elevate KOHC earnings in the coming quarters.

 

 

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