Investor Presentaiton
PACRA
Production Capacity
70
100%
Cement
Supply Side | Production
•
•
Cement sector's production capacity is recorded around ~64mln tons in
FY20 (~60mln tons in FY19), an increase of ~7% YoY. Almost ~76% of the
operational plants are located in the North Region, while remaining
~24% capacity is located in the South Region.
The sector has witnessed some major capacity enhancement rounds in
the last two decades, in anticipation of rising momentum of cement
demand in the country. The first phase was initiated in FY07, which was
completed in FY12, the second phase was announced in FY13 and FY14
against which almost all expansions achieved CoD up till March'20.
Lately, top five (5) cement companies have announced expanding their
production capacities which would add approximately 18mln tons to
the total cement production capacity of Pakistan, taking it up to approx.
81mln tons. The expansions are expected to be completed by FY23-24.
The expansion cycles are based on a various number of factors.
Recently, promising demand from GoP projects such as Naya Pakistan
Housing Program (NPHP), construction of dams, and CPEC related
activities have encouraged the sector players to go into expansion. Also,
the TERF facility has overall diluted the borrowing cost of projects,
making it an attractive opportunity for the players to expand.
60
60
50
40
40
30
20
10
90%
80%
70%
60%
50%
40%
30%
20%
10%
0
0%
FY15
FY16
FY17
FY18
FY19
FY20
Production Capacity (MMT)
Utilization (%)View entire presentation