Pakistan Tycoon Revives 2018 Plan to Expand His Cement Capacity
(Bloomberg) -- Pakistan’s D.G. Khan Cement Co. has revived a plan to expand its capacity to tap growth as the nation recovers from the coronavirus pandemic.
The cement maker, owned by tycoon Mian Mohammad Mansha, is considering increasing its daily output by 8,000 to 12,000 metric tons, according to people familiar with the matter. A final decision is expected by the end of next month, said the people, asking not to be identified because the plan is private. The company had first decided to expand its capacity in 2018 and was awaiting approval.
The provincial government of Punjab last month approved new plants. The approvals have been granted to D.G. Khan Cement, Dandot Cement Co., Global Cement and Cane Cement, said Abdul Karim, an economic adviser at Punjab’s Industries, Commerce and Investment Department. There are more applications for cement plants under process with the provincial government, he said.
A spokesman at D.G. Khan declined to comment.
For Mansha, the approval is timely as it helps his company tap growing demand as Pakistan recovers from the virus. Sales of fuel, cement and cars are near levels seen before the start of the pandemic. Pakistan is currently going through its second wave of infections, although hospitalizations and infections peaked last month.
Prime Minister Imran Khan is pinning hopes for an economic revival on the construction sector by giving investors amnesty to utilize undeclared wealth for building homes. Khan’s government is targeting a growth of 2.1% in the current financial year after the first contraction in 68 years in the year ended June.
Dandot Cement is working to upgrade and restart its current plant, Chief Executive Officer Taha Muhammad Naseem said while confirming the approval. Global Cement and Cane Cement couldn’t be reached for a comment.
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