DG Khan Cement has announced its long-awaited expansion in Pakistan’s northern region, marking a major capacity addition at its DG Khan site. According to a BMA Research report, the company has established a letter of credit (LC) to finance Pakistan’s largest single clinker production line, with a capacity of 11,000tpd, equivalent to around 3.5Mta
The new clinker line is estimated to cost between PKR42bn (US$149.7m) and PKR45bn and will be funded through a financing mix of 70 per cent debt and 30 per cent internal cash generation. DG Khan Cement expects the project to be completed and commissioned within 18–20 months. The plant and equipment will comprise a blend of European and Chinese technology.
At present, DGKC operates two clinker lines at the DG Khan site with a combined capacity of 6700tpd. Upon completion of the new line, total clinker capacity at the site will rise to 17,700tpd. During a recent corporate briefing, the company said it opted to install a new production line rather than upgrade the existing ones, citing their relatively low efficiency.
Overall, DGKC currently has clinker capacity of 4Mt in the north and 2.7Mt in the south, totalling 6.7Mt. Following the expansion, northern capacity is expected to increase to 7.5Mt, lifting total company capacity to 10.2Mt. The expansion is projected to raise DGKC’s capacity-based market share from 6.3 per cent to 11.7 per cent in the Northern region and from 8.3 per cent to 12.7 per cent nationwide.
By Abdul Rab Siddiqi, Pakistan
