Bestway Cement, Pakistan, has planned to start a project in Chakwal, having a capacity of 6000tpd and efforts are underway to revive Mustehkam Cement. The company said, in a notice, to the Karachi Stock Exchange (KSE). The civil work is nearing completion and most of the equipment have arrived at site. The erection of mechnical and electrical equipment has also commenced. The management anticipates that the project would be completed by end of the current fiscal year.
Regarding Mustehkam Cement, the company said that after full and final payment to the Privatisation Commission, the management of Mustehkam was transferred to Betsway on November 16, 2005. Right at the outset the management has made all out efforts to revive Mustehkam’s plant which had remained shut since January 1999.
The company was successful in restarting the 1000 tons per day dry process line during December 2005 and commercial production commenced just before the end of the same month. Efforts are underway to ensure smooth operation of that line and earliest resumption of the two semi-dry process lines, each of 550tpd.
About future outlook, the company said that the government’s continued emphasis on infrastructure development, including the recent announcement of dams, reservoirs, huge construction requirement as a result of devastating earthquake in the north of the country, adequate availability of water during the second half and acute shortage of housing would continue to derive the domestic market. While there may be some pressure on the prices as a result of more capacity coming online, robust demand for cement should ensure future price stability.
The profit of the Bestway Cement Ltd registered an impressive increase of 62 per cent in the six months ended December 31, 2005 to Rs 659 million compared with Rs 407 million for the same period a year ago.