Cement company eyes CPEC business prospects

LAHORE: With 12% current market share in the cement industry and 270,000 tonnes of exports in the last five months, DG Khan Cement Company is confident to serve the domestic markets and eyes to meet business opportunities presented by the China Pakistan Economic Corridor (CPEC).

Nishat group’s DG Khan cement factory in Khairpur is not only maintaining international standards for cement manufacturing (total exports in 2014 were a 662,000 tonnes), but is also doing social work for the betterment of local community, said DG Khan Cement General Manager Khalid Mahmood in a media briefing the other day. General Manager Admin and HR Col (r) Hashmat Ali Khan, Deputy General Manager (DGM) Chaudhry Mukhtar Ahmad, DGM Quarry and Alternate Fuel Rafiur Rehman and Admin and HR Manager Lt Col Abdul Rahman were also present on the occasion.

DG Khan Cement Khairpur plant is designed as per the norms of European Union (EU) and is registered with Pakistan Environmental Protection Agency (Pak-EPA), a monthly monitoring through PEPA-accredited third party agency.

All manufacturing processes of the plant are thoroughly monitored at the central control room, Mahmood said, adding that there are people specially assigned to closely monitor every single activity going on in the plant- from raw material entering the factory’s storage shed to the making of cement in packed form.

He said the reason behind DG khan cement’s market price being higher is because of its maintenance of international standards and number of government taxes imposed on it. “The transportation cost from the factory to Lahore is 50 rupees per bag, whereas the regularity duty on raw material has rocketed from 5% to 60% per tonne. The plant uses imported coal in manufacturing of the cement, which also makes it a little expensive. It also uses 70 to 75% limestone, 20 to 25% clay while 5% additives to make cement. The manufacturing cost is of a bag is Rs 450, excluding the transportation cost,” he added.

Answering a query, he said the company prefers to hire locals as daily wagers, adding that the factory has 425 permanent employees while 300 employees are on contract.

Khalid Mahmood said along with providing cement manufacturing standards, the company has initiated a number of social welfare programmes including free medical centre for all the locals and water reservoir near the factory for the villagers as water shortage is major problem in the area. “We also provide cooperate social relief and have made Nishat Residential Area (NRA) for employees besides providing free transportation facilities for all employees. The company has also given Rs 25 million to UET Taxilla campus and also offers regular internships and trainings programmes for students and locals at the cement plant.

It is pertinent to mention that the DG Khan Cement Factory is a unit of Nishat Group. Nishat is the largest and most diversified industrial business house in South East Asia. It is ranked among the top five business houses of Pakistan. Nishat has strong presence in important business sectors of the region, having total assets of $8.3 billion in textiles, cement, financial and insurance, power generation, paper products, dairy product, aviation, hotels, alternate fuel and real estate.

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