Lucky Cement to set up $200 million plant in Punjab

KARACHI: Lucky Cement has announced to set up a 2.3 million tons capacity fully integrated greenfield cement manufacturing plant in Punjab with a cost of $200 million.
The board of directors of the company, keeping in view the expected growth in the country on the back of long-term infrastructure projects primarily driven by China-Pakistan Economic Corridor (CPEC) initiative, has decided to setup the plant.
The construction work is expected to start in the first quarter of t6he calendar year 2016. It is expected that the plant will become operational in the second quarter of 2018.
Lucky Cement Director Mohammad Yunus Tabba said that the company is optimistic about its volumetric growth in the current financial year.
“Domestic sales are expected to maintain the same upward momentum during the entire year as witnessed in the first quarter of the current financial year on the back of private and public sector construction projects, as well as mega construction projects under the China-Pakistan Economic Corridor (CPEC) initiative.”
“Exports; however, will continue to be challenging, primarily due to lower commodity prices in the international market and devaluation of currencies of the countries against the US dollar, which are prime export markets of the company.”
Tabba said the company’s strong and debt-free financial position and free cash flow generating ability would continue to help investing in the projects and avenues to bring in operational efficiencies and enhance shareholder value.
Meanwhile, Lucky Cement has announced a net profit of Rs2.968 billion for the quarter ended September 30 as compared to the profit of Rs2.669 billion in the same period last year. The earnings per share (EPS) clocked in at Rs9.18 for the quarter under review as against Rs8.25 a year ago. Lucky Cement did not announce any cash dividend.
The company’s overall sales volumes declined 2.7 percent to 1.56 million tons during the quarter as compared to 1.61 million tons in the same period last year.
Although local sales volume registered a growth of 11 percent to 1.07 million tons, export sales volume declined 23.2 percent to 0.49 million tons.
Overall, Pakistan’s cement industry’s offtake grew 1.4 percent to 8.27 million tons during the first quarter of the current fiscal year as compared to 8.16 million tons during the same period last year.
While local sales volume registered a growth of 11.1 percent to 6.77 million tons during the first quarter as compared to 6.10 million tons during the same period last year, export sales volume registered a decline of 27.2 percent to 1.50 million tons during the first quarter as compared to 2.06 million tons during the same period last year.