Attock Cement adds new production line.

Published date17 April 2024

KARACHI -- Attock Cement announced on Tuesday the addition of a new production line with an installed capacity of 1.27 million tonnes per annum, expanding the country's idle capacity at a time when construction activities have remained slow amid elevated inflation and record-high interest rates.

The output capacity of the manufacturer of the Falcon brand has risen to a cumulative 4.30 million tonnes per year, placing it among the top 10 producers (in terms of capacity) out of the 26 major manufacturers of construction material in the country. With this addition, the country's total cement production capacity has risen to around 85 million tonnes per year, with almost half of the total capacity currently lying in surplus, putting many companies in a tough financial situation.

Speaking to The Express Tribune, Mehroz Khan, Deputy Head of Research at Foundation Securities said that cement manufacturers have added around 12 million tonnes of new capacity under the fourth expansion cycle since November 2022. Several companies announced expansions at their factories following the Covid-19 pandemic based on a positive economic outlook, fuelled by remarkable growth and an amnesty scheme in the real estate and property sector.

However, the situation quickly turned unfavourable against the previous outlook amid economic challenges exacerbated by domestic political tensions and worsening geopolitics in Europe and the Middle East. This led to a significant economic downturn, with inflation reaching a multi-decade high of 38% in May 2023 in Pakistan and interest rates soaring to a record high of 22% in June 2023, severely impacting construction and economic activities in the country.

In a notification to the Pakistan Stock Exchange (PSX), the cement maker reported the successful completion of construction and installation work for the additional line, producing 1.27 million tonnes of cement per annum at its manufacturing site in Hub, Baluchistan. 'The new line is now operational, and production has commenced with effect from April 16, 2024.'

Although the...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT