Kohat Cement establishes a letter of credit for Punjab plant

Kohat Cement Co Ltd (KOHC) has informed Pakistan Stock Exchange (PSX) that the company has established a letter of credit for the import of plant and equipment for the pyro-process optimisation of its 6700tpd grey cement production line at Khushab in Punjab.

On 17 February  2021, the company approved, subject to all regulatory approvals, setting up of 7800- 10,000tpd cement plant (along with 8-10MW waste heat recovery and 25MW coal-fired power plants), in Khushab. The estimated cost of the project is PKR30bn (US$167.9m) that will be financed through a mix of debt and equity. It is expected that construction and installation of the plant will be completed in two to two-and-a-half years.

According to  the company’s first quarterly report in September 2021, cement production during this period stood at 868,410t from 893,203t of same quarter of the previous year. This translates to a fall of -2.8 per cent YoY.