Cement factory shuts down on financial challenges

KARACHI: A cement factory has been closed down completely owing to financial difficulties making, according to a notices send to Pakistan Stock Exchange (PSX) on Monday.

The board of directors of directors (BoD) of Dandot Cement Company Limited in its resolution on October 30, 2019 decided to close down the factory completely while complying with all relevant laws in respect.

The company in its communication said that the company had been facing serious challenges with respect to viable operations, adequate liquidity and had incurred huge financial losses for the last many years.

“Further, the current operations of the existing plant are unable to meet the prescribed environmental standards as stipulated by the law.”

Hence, a large amount of fresh capital needs to be invested for a comprehensive Balancing, Modernization and Replacement (BMR) of the project to achieve environment standards, energy efficiency with cost effectiveness and convert the process into automated to made the company financially viable and legally compliant.

It said that the company had no finance of its own and needed to raise fresh capital to invest in the BMR project.

After the relevant finances have been arranged, the project execution will also take more than 12 months, as the current plant needs to be dismantled before new equipment can be installed therein.

This entire process will take an indefinite period of time to complete before operation can resume.

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