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This report is written by Engineer Atif Munir and is considered as important reference on Pakistan Cement Industry and already used in many publications on print and internet. The report covers cement plants, production capacity, local dispatches, export sales and future trends.
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A Comprehensive Report on Pakistan's Cement Industry
This report is written by Engineer Atif Munir and is considered as important reference on Pakistan Cement Industry and already used in many publications on print and internet. The report covers cement plants, production capacity, local dispatches, export sales and future trends.
Copyright:
Attribution Non-Commercial (BY-NC)
Formatos disponibles
Descargue como PDF, TXT o lea en línea desde Scribd
This report is written by Engineer Atif Munir and is considered as important reference on Pakistan Cement Industry and already used in many publications on print and internet. The report covers cement plants, production capacity, local dispatches, export sales and future trends.
Copyright:
Attribution Non-Commercial (BY-NC)
Formatos disponibles
Descargue como PDF, TXT o lea en línea desde Scribd
ATIF MUNIR, CEMENT PAKISTAN COMPANY,
OUTLINES THE CURRENT STATUS OF
PAKISTAN’S CEMENT INDUSTRY, ITS
CHALLENGES AND EXPECTATIONS.
cement is one ofthe mont advances and wel
exablihed industries of Pakistan,
genera
hasinvegrated lates bases on oly.
materials sony Is
techno om ani on ane Has enquired
modern
ry pees techn pea suppliers
History
nly
nal 0.5 lion By
1 ne of maepenidence in 1947, shere were
ar eremt plants with a etal production capacity of
A COMPREHENSIVE
REPORT ON
increase wo
he prodsion expiry aka ine
25 malin bat
evelopment
ould vot keep poe wil the
public and
i Aste
vate sectots took the mikative
dscies. the
the “Stare Cement
stashed and give
Pakivant” (SCCM) 9
for the production of eemene i the
wl to supply
ad continued il
change it poiey of tae contol over mle
ne-anened cement plants were pat up fo privatisation
SCOP
sly it ones oly
ss market
iE ei been eed dors efficiency
foe ph i
an prosiabality grounds. In view of the hig
wer demi ing
her af ye
and liberalisation,Te
| North zone
Sno. | Name of unit
Production capacity to
July 2009
ner
nition)
in Pakistan |
Cement
(mition )
1 | AskariCementLimited-wan | 1050 | 1.1025
2 | Askari Cement-Nzampur | 15 1575
3 | Bestway Cement Limited -Hattar | 1.17 12285,
4 | Bestway Cement Limited 3s | 359082
~Chakwal
5 Cherat Cement Company 10 10s
Limited-Nowshera
6 __Dandot Cement Limited Jehlum | 048 | 0.504
7 DewanHattarcementLimited | 1.08 | 1.134
36 workdcement.com [Oct 09]
fattar
8 | DGKhan Cement Limited 201 2.1105
-DG.Khan
9 | DGKhan Cement Limited 201 2.1105
-Chakwal
10 | FaujiCement Company Limited | 1.11 11655,
Fateh Jang
11__|FectoCementLimited-Sangjani | 078 | 0819
12 | Fying Cement Limited Lila | 1.2 126
13 | Gharibwal Cement Limited 255 26775
ee |
14 Kehat Cement Company Limited 255, 26775
Kohat
15 | Lucky CementLimited-Pemu 3.725714 | 3912
16 | Maple Leaf Cement Factory 351 3.6855,
Limited - Daud
17 |Mustehkum cement Limited | 0.465 | 0.48825
jee
18 | Lafarge Pakistan Cement 195 20875
Company Limited -Chakwal
19 | Ploncer Cement Limited 1933571 | 203025,
| = Khushab
‘Sub total (North) 33.502686 | 35.1782
‘South zone
1 | AC RohriCement Limited 023 02415
Rohe - __
2 | AbAbbas Cement Limited 04s 472s
Nooriabad, Dad
3 | Attock Cement Pakistan Limited | 1.71 17955,
Hub Chowk Lasbela jh
[4 |Dadabhoy Cement Industries | 0.504762 | 03,
Limited - Nooriabad, —
5 | Dewan cement Limited - Dhabgi | 075 07875
[Javedan Cement Limited 06 063
Lucky Cement Limited,-Indus | 3428571 | 36
Highway, Karachi
[8 Pakistan Slag Cement Limited ~ | ors7s |
9 | Thatta Cement Limited-Thatta | 03 0315
10 | Zeal Pak Cement Limited 0342857 | 036
Hyderabad
‘Sub total (South) ast619 | 3.8995
Grand total (North+South) 1.818876 | 44.06732
unis were set up and many others invested heavily wo increase
their exiing production capaci. Afier 2002-03, moa of the
cement manufacturers expanded theif operations, and increase
prediction, This sector as invested about USSI.5 billion in
‘capacity expansion over the last six years,
“The cement industry in Pakistanis divided into two broad
regions, the Northern and Southern regions ‘There are
29 cement production nts registered in the counay with an
inal producion capacity of 44.07 milion t. OF these, 19 units
are loadin the nonh with an insalled production capacity of
35.18 milion (80 while 10 units are located in the south with
an installed production capacity of 8.89 million t (20%). There
are four foreign companies, three armed force companies and
16 private companies listed in the stock exchanges.
‘Due to politcal instability and lack of allocation of fans for
the Public Seaor Development Program (PSDP, the cement
inrustry, which was inthe recession phase, registred an average
growth rate of 2.9% forthe 190 10 2002 period. The period
from 2008 to 2009 has been a golden age forthe Pakitan cement
str. During this period the industry has shown tremendous
growth, The boos in the cme scctor wasnitally dc to vsing
construction activin the country, reconsracton activity in
neighbouring Afghanistan and, ler, tremenelos increase in
exports of cement from Pukisan.
“Tata cement production in Pakistan has inercaee
Aramaic since 2001, Dung EVO809, the otal cement
redhcion was 1.76 milion t which s 12.4% higher than in the
previous yer Tata cement dispatches, including local sles and
exports showed 47,02 increas in F089 as compare 0
the previous yer: However: its interesting to noe that during
the sme period, oa dispatches decreased by 14.07%.
Currently ofthe tal prochicion capacity of wppronimately
4 milion t, domestic demand aocnns for 10:39 milion , whe
the indy has exported about 11.8 milion tower the lst yar:
By 2010, alter expansion and insallation of new plants, the total
annual cement capaci is expected to be around 31 millon t
Local sales
“The main factors behind local cement dispatches are Public
Sector Development Projets (PSDP) allocation, GDP growth,
real estate levelopment projects for commercial and residential
‘use, and the anticipated construction of mega dams. Tal local
sales of cement in FYOG/07 anel FY 07/08 were 21 milion ancl
225 million t respectively, which declined to 19.4 milion t during
Fyox09,
“The 14.07% decrease in domestic cement consumption
during F¥O8/09 ean be atrbuted to the fact that big private
projects are not currently uneler implementation and neither
isthe government ally utilising its budgetary alloction for the
Public Sector Development Program (PSDI), Economie recession,
political instability and the downfall of the eal estate industry abo
contributed towards this negative growth,
According to experts, local cement dispatches ar likely
{to improve in 2009 - 2010 due to an increase in Public Secor
Development Prog allocation (Rs.621bilin) in the budget
FYO9/10 and areeluction in excise duty by Rs.10 per bag as
well as decining interest rates. Local deamand for cement is
also expected to be on the high side due wo the reconstruction
activities of devastated homes and buildings in the Northern
region after the recent military operation. The grovth in cement
dlispatches is solely attributable to rising export volumes, as
‘domestic demand remained! depressed in every comparable time
period, Overall, cement plants of Pakistan operated at 73.60%“Table 2. Historical ota trom 2000-2009: Pakistanis cement ndsty |
[amytosone [Producion m6 local | Expors eis) [Total] Winerense Capocty | Suplus
capacity increase | despatches incrildec) | (mitiion ) (decd despatches | igotaiy | utilisation capacity
Bale ition ‘rion 3 tnion 9
1554 | 51089988 oom | 993 -oom ooo | Senn |
“1g73 120% 9833 e107 10000% | 9940 ano 63.22% ce 3783 |
16321 3a | 10960 [ano |soaeow | 1iat0 | iaanw easy ast
16936374) 12545) 9705 pont anos 323
Vso (575% 14788 16353 1933% | onzaw | 1855 |
2o9ss | r701w | 16907 vaaz Tasew [evar | ses
2006-2007 | 30251 440m | 21034 4231566 coor | 6028
[2007-2008 7.157 22asw | 22596 30286 | 250% esi 6a
[2008-2009 41.760 | 12.30% «19.394 | 30775 | 161% [73.00% 10986 |
Zion in 2008 ~ 09 as compared to 81.5
capacity is inereasing to eater to rising domestic
dustry has started! fain
for Pakistan cement
nent exports, Many
time, with a fallin prices after the second q
‘prices anel higher
to increased supplies, singin
cexpumsion, which led to mounting finance and depreciation costs, produet approval by BUREAU OF INDIAN STANDARDS, a
lier reaching R130 per bag atthe retail level in 2006, cement requirement for exporting cement to
prices fell sharply over the next few years to reach R225 per bag Pakistan achieved improved access to India ater the
Export sales « ted the trade relation between Is
Unlike focal sis, ve make nd New Delhi, and the re-impesition of 12% eounterval
20410 despite the gle eeononie (CVD) by Indian Government on import of cement to support
recession, Accorlng ta statistics fem the All Pakistan Ces its indigenous industry alo alloted imports from Pais
Manufacturers Asseiation (APEMA), cement export in Hovwever in re
Pakistan to Talia
3G duty on Portkind cement
kets. compl
Forces. whieh stabilise prices
balance in demand
1d supply of cemen
exports duving the lat fiscal year According to the Currenaly cement is being exported to India by lanel
Cement Report, lion 4 through the Wagal Borde
exports while Japan got second position by exporting sea transportation are Nhava Sheva, Tticorin, Cochin and
126 millon tof eement. ‘The third largest cement exporter ia a tne major challenges to cement exports to
the world is Thailand, wits around 12 milion t, followed by the diplomatic retains ewe nusies, the 1
urkey, which exported 11.6 million ¢of cement, Pakistan, now mports, and the
Ih poston as ft Germany behind! by exporting mone ion. Allthe
hina maintained fist positon
lack of proper infrastructure for cement transpor
1 million cof cement curing the bast fiscal ve cement being transported by lands fist offloaded by Pakistan
ands at sith position wid 9 rillion exports. trucks and then reloacled on Inlian tracks on the other side of
Cement market experts have suid that Pakistan secured this the border, which considerably inereases costs. According 10 a
position because of high demand of cement in nearby countries trale understanding, for land transportation, both the countries
and by capauring new markets such as Aftian countries, Qatar re 1o provide train Exlites on the busi of interchange, whicly
and Iraq, Pakistan could achieve 13 to 11 million tesportsby the means that one engine would go from Pakistan and the other
ced of the fiscal year; keeping in view tae Indian market, which ‘would come frome India to
Jhas once again started importing cement horn Pakistan. (T
export of cement fiom Pakistan to India showed! sharp deetine either side as put bar
ter the Mumbai aticks) That being sii, Paki
The weight of sea-based cement exports from Pakistan
nel other commetiies
across the Waal boreler: However shart
of railwagons on
et for Indi
the short delivery per
porters. Keepin
(65% of overall cement exports, nl Jow freight chang n pons, the impor. of
as compared with 2008. It is important 19 note ‘cement from Paki ein the coming months.
th during June 2009 were recorded Coment exporters are e markets of Africa,
w13cin the Middle East and Ge
700085 1, which lent export
June 2008, The lature growth of Pakistan's cement industry Hes in the
Data for FYOR09 shows that Mghanitan is Pakistan's largest Afvican markets. Africa's cement demand exceeds supply by
sxport market. Cement exports to Afghanistan increased much as 7 million tpa. ‘The construction industry there is
ss compared ith ate of 25%. ‘The demand for
107 -O8, Pakistan isthe prime supplier for ery strong in the wake of
low when compared with 9%
38 worldcement.com [Oct 09)Table 3. Local cement sales during July 2008 ~ June 2009
Month [rata =
July 2008 1.791 200, —
August 2008 1545 642 -
| ‘September. 4497 468 = 7
abe 208 ry =|
Nore 2008 10395
December 2008 [sts270
‘aoay2008 1596559
Fenny 209 (seme
‘March 2009 1810245, 7
‘prt 2009 — 1665098
= 1648 088
June 2009 1836471 —|
Taal Tae
Askari Cement, ovined by the Army Wielfare rust, has a production
capacity of 3000 ipd.
for example, the UAE will
lion t by 2011, Similarly, South Afviea
‘oF cement for the coming football
requires
requires a large a
skistan fa ly exempted cement
‘exports from general sales tx (GST) and federal excise
duty (FED) and now is expected to grant an inland fie
subs re cement exports, Pakistan's cement
industry is set to achieve the USS! billion cement export level
due to the growth in demand on the international mark
Cement exporters are expected! to get inland freight subsily
From Rs.40 billion export investment find announced in
2009 - 10 budget. Since the majority of cement producti
pacity isin the north zone, the factories py high inane
freight costs for nt by sea: therefore, the
ilustry needs
order to encoun
exporting com
apport in the shape of freight subsidies in
exports
The cement manufacturers have added 8 million tof new
‘capacity and total production is expected to be 45 million t by
the end ofthis year: Despite an excess supply of IL milion
2008, itis estimated that prices will increase in lamest aswell
as kets, which would surely boost profitability
and provide velie to the industy om it westment,
40 worldcement.com [Oct 09]
Lucky Cement Limited
‘Vier nc iam sani igi
neces ta highligh the role of Lacy Cement Lite which
inti r posto exporter. The Licky
Cement Lint by (0) Yarns Brhers Group sae apa
iv 196 with prc pci 0 12
plot in Fem NFR wich was abecqucely ogra vo
ion pin 1989, tacky Cement Lit emerge asthe
curr of cement in Pakistan 2004-05 when the
iy mien aie ian ToT ARE ia
iia lee
secre projet of 25 mon pain Kevachi The prj n
arate port
cement the regional comes by x. Inmet ge
a god reponse fom thc export mark the emp sed
tlio ist the Kara pla oak the
Wis» pa atts mother
re of Pakisan’s overseas cement sales, exported
tion to the Middle Es
in te nine months en
57% ofits prox
inl Afghanis
to Inelia, Sti Lanka
From the Midlle East
some foal rivals to expand capacity at homme.
Lucky Cement has given a new dimension tothe local cement
industry by expat
he bole decisions by sat the right ti
maintained te compa pettiveness, It decided to set up
its own export-relsted infrastructure on a sell
purchased 75 buatkersanl a ship loale: throu sshich it started
Jose cement export for the fist time
February 2007. The encouraging perfor
“exports farther motivated the manag
facility atthe port as buffer stock, together with the
nd wo awvid waiting ane! Todi
going vessels The Lareky Ce snl ols
istani cement exponters and
al ostlenecks.
ts proce despite se
the country’s history i
seanthen its presnice beyond
n's biggest producer plist
st overseas factory in Affi by 2011, Mahan
Habba, the Chie! Executive Officer Lacky Cement stid
interview that Lucky. which exports South Affe, its to use
the African factory 10 export to Europe, AB combined
stie product of USS2.68 tll anda population of
compared with
is forecast to expand
2.8% in 2000,
Challenges
Fnure challenges fice by the industry are ua nel cericy
cheng nd freight changes, which also eomprze a lange
porn ofthe dered ons Majo pacar of sue
Sd Arabi and fran are expected come online by 10
inh Gare hich ng Ry to cen ae eos
Fractional Differential Equations: An Introduction to Fractional Derivatives, Fractional Differential Equations, to Methods of Their Solution and Some of Their Applications