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Encouraged by CPEC, Pakistan’s cement industry to increase capacity by 56pc: report
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KARACHI: Encouraged by the China-Pakistan Economic Corridor (CPEC), Pakistan’s cement industry is expected to increase its capacity by 56 % to 70 million tons in next five years, a Bloomberg report cited Karachi-based brokerage.
According to BMI Research report published last month, Pakistan is among the world’s fastest-growing construction markets and is expected to grow an average 12% annually for the next five years.
Pakistan’s cement capacity utilization increased to 88 percent in the 10 months through April, the highest in 11 years, while exports declined 19 percent, indicating an increase in local consumption, according to the All Pakistan Cement Manufacturer Association, the Bloomberg report said.
The anticipated demand has been a boon for Pakistan’s cement industry. The demand is not going down because of a boom in the construction sector. The mega projects are being built and the CPEC is a key factor for this boom, the report said.
The cement industry is aiming to even increase its capacity, riding a wave of Chinese-financed infrastructure projects across Pakistan.
Announcing the future plans to boost capacity by some major cement industries, the report said Power Cement Ltd. is boosting its ability to churn out 10,700 tons a day; Cherat Cement Co. announced plans to build a third unit days after completing a second, with a capacity of 7,100 tons a day; Gharibwal Cement Ltd. is doubling capacity to more than 13,000 tons a day by August.
It added that the cement stocks have also outpaced the nation’s benchmark stock measure, with a group of 21 companies rising an average 47 percent in the past year.
Advertisement
KARACHI: Encouraged by the China-Pakistan Economic Corridor (CPEC), Pakistan’s cement industry is expected to increase its capacity by 56 % to 70 million tons in next five years, a Bloomberg report cited Karachi-based brokerage.
According to BMI Research report published last month, Pakistan is among the world’s fastest-growing construction markets and is expected to grow an average 12% annually for the next five years.
Pakistan’s cement capacity utilization increased to 88 percent in the 10 months through April, the highest in 11 years, while exports declined 19 percent, indicating an increase in local consumption, according to the All Pakistan Cement Manufacturer Association, the Bloomberg report said.
The anticipated demand has been a boon for Pakistan’s cement industry. The demand is not going down because of a boom in the construction sector. The mega projects are being built and the CPEC is a key factor for this boom, the report said.
The cement industry is aiming to even increase its capacity, riding a wave of Chinese-financed infrastructure projects across Pakistan.
Announcing the future plans to boost capacity by some major cement industries, the report said Power Cement Ltd. is boosting its ability to churn out 10,700 tons a day; Cherat Cement Co. announced plans to build a third unit days after completing a second, with a capacity of 7,100 tons a day; Gharibwal Cement Ltd. is doubling capacity to more than 13,000 tons a day by August.
It added that the cement stocks have also outpaced the nation’s benchmark stock measure, with a group of 21 companies rising an average 47 percent in the past year.
