Lucky Cement’s expansion programme

Lucky Cement, Pakisatan is planning to build an additional production line of 8400tpd at its existing Site in Bannu Division. The company has already entered into agreements with the suppliers of machinery in China & Europe. Necessary Letters of Credits have been established and the civil work is in full swing. It is hoped that the new capacity will be in full production before December 2005.

 The company has also decided to build a Green Field Plant with a capacity to produce 8400tpd of cement of different types & grades per day at Karachi  on Super Highway. The Letters of Credit for machinery and equipment for the new plant have been established and the contracts for civil works have also been awarded and the civil work has commenced. When both the expansion projects are implemented the company will have a total production capacity of more than 21,000tpd of cement. Both the expanded plants will have their own power generation. The total cost of both the expansion projects including power plant has been estimated at Rs11.90bn.

 The company has entered into borrowing arrangements with different banks. It is expected that these borrowings together with the cash generated by existing and future operations will meet the financial requirements for the new projects. If necessary the company may borrow some additional amounts subject to reasonable interest costs. If at any stage, the company feels that a resort to equity financing is necessary, the company will issue Right shares. The authorised capital of the company is therefore being increased from Rs3.0bn to Rs.5.0bn.