Maple Leaf Cement Factory Limited revealed today that up till the quarter ended June 30, 2018, a total of 100 shipments carrying plant and machinery equipment have been received, while approximately 60% of the civil work has been completed up to the given period with regard to its expansion project.
The company also revealed that plant erection work on its expansion project has started, and 14% of the work has been completed by June 30, 2018.
The company expects commercial production from the new line of 7300 tons per day to commence within the fourth quarter of the current financial year.
Maple Leaf Cement Factory had initiated a brownfield expansion project at the Company’s existing site in Iskandarabad that would add 7,300 tons per day to enhance the factory’s total grey cement capacity to about 18,000 tons per day.
Total projected cost for the project was estimated at Rs. 25 billion, to be financed approximately 17% by way of right issues, 51% through bank loans and the rest from internal cash generation.
In this regard, the company had opened a Letter of Credit through National Bank of Pakistan to the amount of Euro 79.6 million (approx. Rs. 11 billion) as on March 17, 2018, in favor of its plant supplier, M/s. FLSmidth A/S, Demark, for supply and setting up of the said production line.
As per company’s notification to the Pakistan Stock Exchange, a total of 100 shipments amounting to Euro 65.7 million have been received and the shipments are expected to keep coming through the tenor of the Letter of Credits.
Previously, up to the quarter ended March 31, 2018, a total of 59 shipments had been received with an estimated value of 36 million Euros.
The contract for the civil construction and mechanical erection work had been awarded to M/s. Descon Engineering Limited. In its notification to the PSX, the company informed that approximately 60% of the civil work has been completed.
Previously, up to the quarter ended March 31, 2018, approximately 25% of civil work had been completed while only 5% of work had been done with regard to plant erection.