Pakistan: Arif Habib Group to invest PKR25bn in new plant

Pakistan: Arif Habib Group to invest PKR25bn in new plant
20 January 2017

Arif Habib Group has said that it is going to invest PKR25bn (US$238.5m) in a new cement plant to be completed in the next two years, to be operated by its subsidiary Power Cement. The new plant will take the installed capacity of Power Cement to 3.37Mta from its current capacity of just 0.9Mta.

Owing to energy shortages, Pakistan’s GDP is not growing at the pace it should. However, Power Cement Chairman, Nasim Beg, stated that he believed the China-Pakistan Economic Corridor (CPEC) will help reduce the energy crisis, translating into a healthier economy and consequential higher cement consumption.

“Cement demand was already growing before the launch of CPEC, which means that demand is there fundamentally, and that it’s not a one-off because of CPEC-related infrastructure projects,” Mr Beg said.

Meanwhile, at its existing Nooriabad Dadu integrated plant in Sindh, Power Cement invested PKR350m to install bag house equipment with a view to reduce dust emissions. During the installation the company had to significantly reduce its cement production.

Company officials say the plant is now capable of reducing dust emissions to just 17mg/Nm3, which is significantly lower than the 300mg/Nm3 specified Environment Quality Standards applicable in Pakistan, and the World Bank’s 100mg/Nm3 for old cement plants.

Published under Cement News