Pioneer Cement Ltd (PIOC) has announced that its Board of Directors has approved the installation of a 28.3MW solar power plant at its manufacturing facility in Chenki, Jauharabad, District Khushab in Punjab, according to a notification to PSX by the company on June 15.
The project, which will be fully financed through internal cash flows, is expected to commence commercial operations in 2QFY27. According to company disclosures, the initiative is designed to reduce reliance on grid electricity, which currently accounts for around 20 per cent of the plant’s power mix.
Industry analysts estimate the capital expenditure at approximately PKR2.5bn (US$9.0m), with Pioneer Cement holding PKR4.7bn in cash and short-term investments as of March 2026, ensuring strong liquidity to support the project.
Research houses, including AKD Securities, highlight that the solar integration could deliver after-tax annual savings of PKR3.3 per share, strengthening margins and enhancing cost efficiency. AKD maintains a ‘BUY’ stance on PIOC, with a December 2026 target price of PKR372 per share, citing demand recovery, margin resilience, and renewable energy initiatives as key drivers.
By Abdul Rab Siddiqi, Pakistan
