Displaying items by tag: DG Khan
DG Khan sales grow by 8% to US$154m in second half of 2017
21 February 2018Pakistan: DG Khan’s sales grew by 8% to US$154m in the second half of 2017 from US$142m from in the same period of 2016. However, its profit after taxation fell by 21% to US$31m from US$40m.
DG Khan Cement’s annual profit falls by 6.3% to US$74.5m
21 September 2017Pakistan: DG Khan Cement’s profit after taxation has fallen by 6.3% year-on-year to US$74.5m in the financial year that ended on 30 June 2017 from US$79.5m in the same period in 2016. It blamed the decline on its expensive coal inventory, higher power costs and low prices, according to the News International newspaper. Despite this its sales revenue rose slightly to US$308m.
Pakistan: DG Khan Cement’s new plant at Hub in Balochistan will officially start production by December 2017. The 9000t/day plant is scheduled to complete civil engineering work by September 2017 and then start commissioning by the end of the year, according Shajar Capital in a reported covered by the Express Tribune newspaper. The new plant is expected to support infrastructure development near Gwadar and support residential schemes in Balochistan and Sindh.
Loesche reports on DG Khan Cement project at Hub
31 March 2017Pakistan: Loesche has released details on its order to supply three grinding plants for DG Khan Cement for a new 9000t/day clinker production line at Hub in Balochistan. The contract, which was originally signed in September 2015, includes one 654t/hr raw meal, one 445t/hr Ordinary Portland Cement mill with a COPE drive and a 66t/hr coal mill. Loesche says that the raw mill with a nominal capacity of 1050t/hr will be the biggest raw material mill in the world. Loesche is responsible for the full mechanical equipment and together with Loesche Automation for the electrical engineering package along with all hardware supply from steel structure to electrical equipment and automation.
DG Khan Cement to build new plant at Hub
29 November 2016Pakistan: DG Khan Cement plans to build a new 9000t/day cement plant at Hub in Balochistan. It has contracted Izhar Construction to conduct all civil work on the project, according to the Nation newspaper. The plant is being built to benefit from demand generated from infrastructure built via the China-Pakistan Economic Corridor.
DG Khan Cement to set up new plant at Hub
12 October 2015Pakistan: DG Khan Cement plans to set up a new cement plant at Hub to meet growing demand of cement in the country, particularly in Karachi.
DG Cement Director of Marketing Fareed Fazal said that the new plant produce 10,000t/day of clinker. Fareed said that the company's cement was being exported regularly to Northern Africa and Sri Lanka, among others. In addition, Fazal said that recently France had expressed willingness to import bagged cement from DG Khan Cement and that efforts were afoot to meet the production requirement. The French importers, however, have requested 35kg bags instead of the standard 50kg.
DG Khan releases further details of new Baluchistan cement plant
09 September 2015Pakistan: DG Khan Cement has signed a contract with Germany's Loesche GmbH to supply complete raw, cement and coal grinding mills for its greenfield cement plant in Lasbella, Baluchistan. The cement grinding mills will be provided by a German company, while Denmark's FLSmidth has been contracted for engineering and equipment, according to DG Khan Secretary Khalid Chohan. The new 9,000t/day plant will be completed with a cost of around US$300m within three years. DG Khan has already signed an agreement with K-Electric for the supply of 40MW of electricity.
FLSmidth to supply cement plant to DG Khan Cement
13 July 2015Pakistan: FLSmidth has signed a Euro57m contract with DG Khan Cement to supply engineering and equipment for a 8500t/day greenfield cement plant in Pakistan.
"Pakistan is a very important market for FLSmidth and we are extremely pleased that DG Khan has again chosen FLSmidth as its supplier. This underlines its valuable long-term ties with DG Khan Cement, as well as our strong foothold in Pakistan, where we expect to see more activity following new government development programmes," said president of the cement division, Per Mejnert Kristensen.
The first contract between DG Khan and FLSmidth dates back to 1992. Since then the partnership has resulted in three additional orders to FLSmidth in 1998, 2005 and 2007. The new order will be booked by the cement division and will contribute beneficially to FLSmidth's earnings until 2017.
South Africa imposes duties on cement
18 May 2015South Africa: South Africa has imposed provisional anti-dumping duties of 14.3 – 77.2% on Portland Cement originating in or imported from Pakistan from 15 May 2015 for six months. Lucky Cement is subjected to pay 14.3% duty, followed by Bestway at 77.2%, DG Khan at 68.9%, Attock Pakistan at 63.5% and other cement makers at 62.7%.
This follows an investigation initiated by the International Trade Administration Commission of South Africa (ITAC) on 22 August 2014 after a number of local cement producing companies submitted an application on behalf of the South African Customs Union (SACU). A number of companies, including Afrisam, Lafarge Africa, NPC Cimpor and PPC, approached the ITAC and established a prima facie case that convinced the commission to initiate an investigation on the basis of dumping, material injury, threat of material injury and causality. However, the application was opposed by Pakistani cement producers, such as Lucky Cement, Bestway Cement, DG Khan Cement and Attock Cement.
The commission found that the industry is suffering material injury through a decline in sales volume and output as well as profits and cash flow. The industry also experienced price undercutting and price suppression. The commission further found that a threat of material injury exists given that Pakistan has increased its production capacity; Pakistan's exports to its traditional markets are declining and imports from Pakistan into South Africa increased by >600% in 2010 - 2013.
The commission made a preliminary determination that Portland cement originating in or imported from Pakistan was dumped into the market. In order to prevent further injury to the industry while the investigation is under way, the commission has requested the SARS (South African Revenue Service) to impose the provisional measures on imported Portland cement originating from Pakistan for six months.
DG Khan plans US$300m cement plant amid strong financial results
23 February 2015Pakistan: Mian Mansha's DG Khan Cement Ltd plans to build a US$300m plant near Karachi as economic growth boosts demand. This marks its first plant build since 2007. The new plant near Hub, west of Karachi, will produce 2 - 2.5Mt/yr of cement. Construction is targeted for completion late in 2018. The plant will be financed 40% through internal cash and the rest through debt, said Niazi.
"There will be a shortage domestically in three years if there is 10%/yr growth in demand," said CFO Inayat Ullah Niazi. DG Khan's two cement plants have operated near full capacity for the past two years. Pakistan's output is projected to expand by 43% in the year that ends on 30 June 2015 and 47.5% in the following fiscal year.
DG Khan Cement announced a net income of US$33.3m for the first six months of its financial year, which ended on 31 December 2014, up by 27% compared to US$26.2m in the same period of 2013. The company's earnings surged by 93% quarter-on-quarter to US$22m during the second quarter of its financial year. With stable off-take and prices, revenue increased by 2% year-on-year to US$124m during the first half of the fiscal year because of an improved sales mix. Revenues jumped by 18% quarter-on-quarter to US$66.8m during the second quarter.
"The earnings were significantly above our estimates due to higher-than-estimated other income and lower-than-expected taxation charges," said DG Khan.