Tycoon Plans Expansion to Become Pakistan’s Biggest Cement Maker
(Bloomberg) -- Tycoon Mian Muhammad Mansha’s D.G. Khan Cement Co. is aiming to become Pakistan’s largest cement maker by expanding capacity.
The company has sought permission from the provincial government to boost its current facility by 12,000 tons a day, according a letter seen by Bloomberg. Javed Iqbal Malik, a senior economic adviser at Punjab province’s industries department confirmed getting the letter but did not give any other details.
The approval process could take 6 to 12 months and a final decision on expanding capacity will be taken after considering the demand and economic situation, Inayat Ullah Niazi, Chief Financial Officer at D.G. Khan Cement said by phone.
The proposed expansion will help D.G. Khan topple Bestway Cement Ltd. as the nation’s biggest producer of the building material. Its capacity addition plan comes as Pakistan’s Prime Minister Imran Khan tries to kick-start the construction sector to increase economic growth and create employment following its 13th loan from the International Monetary Fund since the late 1980s.
D.G. Khan’s capacity will jump to 10.7 million tons following the expansion, exceeding Bestway’s 10.3 million tons capability, according to data on the cement association’s website.
The South Asian nation’s economy is looking to stabilize its economy after securing a $6 billion bailout from the International Monetary Fund. The rescue package is expected to require Pakistan to boost tax revenue, reduce energy debt and identify state-owned companies to privatize.
In the year ended June, domestic cement sales dropped for the first time in eight years. They have increased 2.3% to 13.3 million tons in the four months to October.
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