Pakistan: Fauji Cement expansion takes capacity to 11,560tpd

Pakistan: Fauji Cement expansion takes capacity to 11,560tpd
Published: 04 July 2011

To meet the future challenges and demand, Fauji Cement Company Limited (FCCL) has constructed the country’s biggest single-unit cement plant to enhance its cement capacity by almost 200 per cent.

FFCL, the No 1 company by capacity utilisation of 90.67% against an overall average of 71.65%, used to produce 3885tpd of cement but now it is producing 11,560tpd.

"We have invested PKR20bn (US$232.7m) to purchase a state-of-the-art plant from Polysius while all other items including electrical equipment, packing plant, vertical cement mills have been imported from Switzerland and other developed nations," said Brigadier Muhammad Sarwar, SI (M), TBt, (Retd).

Talking to exporters and Dr Murtaza Mughal, president of the Pakistan Economy Watch (PEW), after the inauguration, Muhammad Sarwar, GM, Marketing and Sales of FCCL said that the company is the largest capacity-wise exporter and had exported 40 per cent of total production last year to raise US$250m.

“We are now better placed to play a role in national development and earn more foreign exchange for the government,” said Sarwar.

Colonel (retd) Tariq Mahmood said that the company is the only cement manufacturer using 100% western technology for quality. "We took the lead by installing first ever refuse-derived fuel (RDF) processing plant at a cost of PKR320m to ensure environment friendly conditions," he added.

Omer Ahsan Alvi said that Fauji cement is being used in The Centaurus while its product was preferred in the raising of the Mangla Dam and the building of the Satpara Dam, the M1 motorway, the Serena Hotel, the Neelum Jhelum Hydro-Power project, 8.75km Lowari tunnel and Pak-Turk and Erra constructions.

CEO of Faujian International Malik Khalid Nawaz said that the firm is now in a better position to capture the promising market of Sri Lanka.

Dr Murtaza Mughal, president of PEW, said that government’s support is imperative to save cement sector. Absence of relaxations and an inland freight subsidy, that were promised a long time ago, have left only four out of 39 production units in profit.

Dr Murtaza Mughal said: "We produce 11Mt of surplus cement, of which 400,000t goes to Afghanistan every month while exports to India remains under 100,000t due to improper arrangement of the railways and absence of land route permission.

“Pakistan has great export capacity but a price war has inflicted heavy losses on all companies,” he added.
Murtaza Mughal said that reduced law and order, PSDP allocations and shelving mega projects have also hurt the cement industry. He said that Pakistan should expedite efforts for the opening of a land route for cement exports to India which is bigger market than Afghanistan. "Such steps are imperative to revive ailing cement sector," said Dr Mughal.