The cement production capacity of Attock Cement has risen to 5,985 tonnes per day after its line-2 started production on Thursday.

The new line will produce 2,520 tonnes of cement a day, according to a notice sent to the Karachi Stock Exchange.

Earlier, the company had enhanced its clinker production capacity to 5,700 tonnes a day in June. This raise in capacity is one of the many expansions planned and executed by the cement industry during the last six months.

Lucky Cement was the first to enhance its production capacity while others followed suit. Lucky is now the largest cement maker in the country.

With the start of new plants of these companies, the availability of cement in the market would increase substantially. This expansion by Attock Cement is likely to help it capture a chunk of the export market.

The other day, the government decided to resume paying rebate on the export of cement. On the other hand, the government withdrew the subsidy it was offering on the import of cement. This, too, will benefit the local manufacturers as imports will become unviable.

A few months ago, the cement producers had severely criticised the government’s decision to allow duty-free imports of cement on the grounds that their new plants were expected to start production in a few months, which would make the availability of cement greater and bring prices naturally down.

But the government found itself compelled to allow imports in April as builders and developers as well as the opposition parties in parliament voiced strong concern over the price hike.

However, the decision proved to be of little help because nobody imported cement after the Customs withheld some consignments on quality grounds. The initial excitement and willingness of importers evaporated when they faced losses.

No cement consignment has arrived in the country for more than two months. On the other hand, all is well for the cement makers who are not only selling their products at higher prices, but also exporting their surplus stuff.

The cement prices had surged as high as Rs400 per 50kg bag in April. After the government allowed imports on April 14, the prices gradually came down to Rs290 to Rs315 per bag. Imported cement was sold for Rs260 to Rs270 per bag.

Source: The News