Lucky to export cement to South Africa

Lucky to export cement to South Africa
27 March 2008

Lucky Cement is optimistic about the expansion process of its first production line (4,200tpd or 1.26Mta) in its southern plant and plans to start producing clinker by November, which will increase its annual cement capacity to 7.6Mta.

According to the management, the prevailing political scenario has forced Lucky Cement to delay the Global Depository Receipts (GDR) issue, as they do not intend to offer shares at a low price. However, they expect to go with the GDR issue, once political clarity evolves. Meanwhile, the company is further aiming to install the second line of the same capacity after the GDR issue, JS Research reported.

Recent positive development for Lucky was the consent of South African authorities to import cement from Pakistan as it is facing a shortage of cement due to the upcoming football world cup in 2010. Pakistan can potentially export 9Mt of cement to South Africa in the next two years. Lucky Cement is the only local cement producer that has received an export certificate from the South African Bureau of Standards.

Cement prices went further up by Rs7-8 per bag. After witnessing a rise of Rs10-15 per bag, cement companies, with a gap of one day, have again increased ex-factory cement prices by Rs7-8 per bag in the Northern region of Pakistan. At present, Lucky Cement is the largest cement producer in Pakistan, having an annual capacity of 6.5Mt (21,840tpd).

Published under Cement News