Calicom Industries applies to acquire Dandot Cement

Calicom Industries applies to acquire Dandot Cement
01 November 2018

Dandot Cement Co Ltd (DCCL) has informed Pakistan Stock Exchange that the company has received a firm intention from Calicom Industries (Pvt) Ltd, Lahore to its acquire control of DCCL and 63,542,787 voting shares (67 per cent of paid up capital) of DCCL beyond the thresholds prescribed under Section 111 of the Securities Act 2016 (the "Act").

This intention was notified to DCCL's board of directors on 31 October 2018, stated by Mr Muhamamd Kamran, Company Secretary to PSX.

Calicom Industries has already appointed Pervez Ahmed Capital (Pvt.) Ltd to act as Manager to acquire Dandot Cement in accordance with the provisions of the act and the regulations.
9MFY17-18 performance
The company incurred a net loss of PKR375m during this period and officials attribute losses to high input costs, power shutdowns with voltage fluctuations, frequent repair and maintenance and alternative fuel testing cost.

Plant history
The company was incorporated in 1980 in Pakistan as public limited company and started its production in 1983 Dandot RS, Jhelum district, Punjab. The plant was supplied and erected by Mitsubishi Heavy Industries (MHI) Japan. The kiln was designed for a rated capacity of 1000tpd of clinker. The company was acquired by Chakwal Group of Companies in 1992. That management contacted FLSmidth Denmark to increase the capacity upto 1600tpd. The installation work for optimisation of the plant was completed in 1994 which enabled it to produce 504,000tpa of cement.

Afterwards the company was sold to  Gharibwal Cement Co Ltd in 2000 and remained under its control upto 2007. In 2007, company was acquired by Three Star Group of Companies, the current management.

After five years of operations, the management arranged an investment/loan in 2013 for major maintenance and BMR of the plant. After the BMR the plant is running commendably with enhanced efficiency. Further negotiations with FLSmidth Denmark are also in process to increase the production capacity upto 1800tpd of clinker. Furthermore, the management is also considering various options to make the machinery more proficient especially by replacement of old electric installations/equipments to reduce the power and fuel cost.

Published under Cement News