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Fauji Cement announces setting up new plant

KARACHI: Fauji Cement Company Limited has announced to set up a Greenfield Cement Manufacturing Plant of 2.05 million tons per annum at Dera Ghazi Khan.

In a communication sent to Pakistan Stock Exchange (PSX), the company said that consequent to construction activity picking up and significant spend on infrastructure, expected to continue, the board of directors of the company had decided to invest in additional cement capacity.

According, the board of directors of Fauji Cement Company Limited 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 conclusion of negotiation with the suppliers and contractors,” the company said.

The construction work on the project is expected to commence with current financial year and is expected to have a construction period of above 2.5 years.

Currently, the company is targeting financial closed by March 31, 2021.