KARACHI: Kohat Cement Company Limited has announced 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 Punjab.
The estimated cost of the project is Rs30 billion, which shall be financed through 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.
Infrastructure projects and the housing sector are the key drivers for consumption of cement.
Going forward, consumption of cement from these two sectors is projected to increase because of projects under China Pakistan Economic Corridor (CPEC) including economic zones,hydro power projects and government’s plans under Naya Pakistan Housing Scheme.
State Bank of Pakistan (SBP) has recently introduced finance facility for construction / acquisition of homes at reduced mark-up rates repayable in affordable monthly installments which shall further spur the cement demand.
State Cement Corporation of Pakistan (SCCP) established a 1000 TPD Romanian cement line at Kohat in 1984. The Government of Pakistan in open bidding in 1992 privatized the Company.
The new management headed by Aizaz Sheikh (CEO) undertook an extensive BMR program in 1995 funded by proceeds of a public offering and a commercial debt. The capacity of the Plant was enhanced to 1,800 TPD by engaging KHD, a renowned German Company.
Kohat Cement has been in expansion mode since then and timely converted to coal firing, established a white cement plant of 450 TPD pruduction capacity, set up a new grey cement line of 6,700 TPD capacity and also established a standby power plant of 22.4 MW capacity.