Pakistan: DG Khan Cement continues with cement expansion

DG Khan Cement signed contract with equipment supplier in Germany

{reg}DG Khan Cement (DGKC) has signed a contract with Germany's Loesche to supply complete raw materials, cement and coal grinding mills for its greenfield cement plant in Lasbella, Baluchistan, reports The News. The new plant will have a production capacity of 9,000 tons per day that will be completed with a cost of around USD 300 million within two and half years.

DG Khan Cement has already signed an agreement with K-Electric for the supply of 40MW electricity. ÔÇ£Grinding mills will be provided by a German firm, while Flsmidth of Denmark has been contracted for engineering and equipment,ÔÇØ said Khalid Chohan, Company Secretary at DG Khan Cement.

At present, the housing sector is largest consumer of cement and fluctuations in prices of furnace oil, coal and other petroleum products will influence the cement sector.

The new cement plant is expected to create an oversupply of cement in Pakistan's cement market. However, some analyst explained that the cement plant would fulfil the demand for cement after three and half years. Presently, there are 24 cement production facilities in Pakistan, having a cumulative operational capacity of 45.618 million tons of cement per year.{/reg}