Bestway Cement starts clinker supply from new unit

KARACHI: Bestway Cement has begun supplying clinker from its new production unit that has an output capacity of 6,000 tons/day.

“From 20th June, Bestway Cement Limited has started dispatches from its new Farooqia Line II having a clinker capacity of 6,000 tons per day,” the cement maker said in a statement to the Pakistan Stock Exchange.

Bestway started production from its new plant in May last year. Farooqia’s plant had around 1,700/day capacity plant when Bestway decided to bid for 85.29 percent of equity of Mustehkam Cement Limited. But, it was doubled to 3,000/day after the upgrade in 2009. The company also has clinker production plants in Hattar, Chakwal and Kalar Kahar.

Zeeshan Afzal head of Research at Insight Securities said the completion of the project would increase the overall capacity of the company by almost 24 percent, increasing its market share.

Currently, Bestway Cement’s capacity is around eight million tons per annum and following the expansion it increased to nearly 9.98 million tons a year.

Bestway has now become the market leader with the enhancement, followed by Lucky Cement having capacity of nearly 8.6 million tons per annum.

Bestway, in its latest quarterly report, said the cement sector has directly benefited from ongoing infrastructure development on public sector spending and related to China-Pakistan Economic Corridor.

Analysts said rising fuel prices and input costs, however, made it more challenging for local cement markers to compete in the international market.

The company recorded gross turnover of Rs58.6 billion in the nine months ended 31 March, an eight percent year on year.

Net turnover grew three percent to Rs40.2 billion during the period. The increase in sales was attributed to growing domestic demand during the period, partially dampened by declining export volumes, higher duties and taxes and lower retention.