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Lucky cement – Aiming high to form a new, fully integrated green field cement manufacturing plant

Sponsored by reputed Yunus Brothers Group – one of the largest export houses of Pakistan, Lucky Cement Limited currently has the capacity of producing 25,000 tons per day of dry process cement. Lucky Cement Limited (LCL) is one of the largest producers and leading exporters of quality cement in Pakistan, with a production capacity of 7.75 million tons per annum. The company is listed on Pakistan and London Stock Exchanges.

Over the years, the Company has grown substantially and is expanding its business operations with production facilities at strategic locations in Karachi to cater to the Southern regions, Pezu and Khyber Pakhtunkhwa to furnish the Northern areas of the country.

Lucky Cement is Pakistan’s first company to export sizeable quantities of loose cement being the only cement manufacturer to have its own loading and storage terminal at Karachi Port. The Company has embarked on the journey of global expansion by setting up cement grinding facility in Basra, Iraq and a cement manufacturing plant in Democratic Republic of Congo (DRC).

Furthermore, the company has diversified into power generation by investing in a 660MW coal-based power project in Karachi. Also the acquisition of ICI Pakistan is another noteworthy move towards the expansion of Lucky Cement’s industry portfolio.

LATEST TECHNOLOGY PLANT WITH RS 20 BILLION INVESTMENT

Pakistan’s leading cement producer, Lucky Cement Limited, is investing Rs 20 billion for establishing a new, fully integrated green field cement manufacturing plant.

Lucky Cement is already operating two plants in the country, one at Pezu, Khyber Pakhtunkhwa and one in Nooriabad, Karachi. In these areas, Lucky Cement is not just running very successful plants; they are also thoroughly invested in local development. They are running schools, dispensaries, and are patrons of environmental programs as well. The company is currently in the process of acquiring land for their plant which has been marked on the outskirts of Chakwal.

Ongoing activities include finalization of contracts with equipment suppliers which is expected to be done by the end of this year. The plant will become functional by 2018. The new project will be a fully integrated green field plant which means it will be constructed free from constraints of existing buildings. Reportedly, it will house the latest technology also used by Vertical Roller Mills, in-step with international standards. The plant will have a production capacity of 7,000 tons per day which amounts to an impressive 2.3 million tons per year.

The announcement of a new cement plant comes as a part of the economic activity linked to the China-Pakistan Economic Corridor (CPEC). The plant is expected to fulfill the demands of the infrastructure and construction sector.

Once the plant becomes functional it will open up around 5,000 employment opportunities, particularly driving the economic activity for the people of Chakwal district.

Lucky Cement also reported progress on its key local and international projects i.e. brown field expansion (installation of new production line) at Karachi Plant, fully integrated green field Cement Manufacturing Plant in Punjab province, investment in automobile Manufacturing plant under license from KIA Motors Corporation, brown field expansion in Cement Grinding unit in Republic of Iraq, 1 X 660MW, supercritical coal based power project at Port Qasim.

Lucky Cement remains committed toward value-creation for the society in which it operates. In this regard, the Company extended numerous scholarships to deserving students for various leading universities in Pakistan.

PRODUCTS

OPC: Lucky Cement offer Ordinary Portland Cement (OPC) that is used in all general constructions, especially in major and prestigious projects where cement is needed to meet stringent quality requirements. It can also be used in concrete mortars and grouts, etc. Ordinary Portland Cement is compatible/consumable with admixture/ retarders, etc.

OPC has easy workability and lower heat of hydration. We maintain our technical standard of quality parameter at high level and with high strength at all ages. Our OPC cement satisfies EN 196 / 197–1, SABS, BIS, SLSI & PSS–232-1983 (R).

SRC: By maintaining C3A level within the specified limit of 3.5 percent our Sulphate Resistant Cement is more resistant to Sulphate attacks and is suitable for use in foundations near seashore and canal linings. SRC has lower heat of hydration and its strength satisfies B.S 4027/1980 & PS 612/1989.

Clinker: Lucky Cement also offers clinker to the customers with their own grinding units. Clinker can be easily handled by ordinary mineral handling equipment and can be stored for several months without compromising on the quality.

Clinker is the primary product in the cement manufacturing process where limestone, clay and sand are grinded and heated, before the gypsum is added to produce the final product of cement.

Block Cement: By the nature of product, Block Cement is similar to the SRC, with a significantly darker color and some low setting time to meet the requirements of the market and for the production of blocks. Block Cement also maintains C3A level within the specified limit of 3.5 percent.

 

RECORD PROFIT

Lucky Cement reported net profit of Rs 13.69 billion for the fiscal year ended June 30, 2017 which is 5.8 percent higher as compared to last year. The earnings per share (EPS) for the fiscal year increased to Rs 42.34 compared to Rs 40.03 reported during last year. The Company declared final dividend of Rs 12 per share for the fiscal year ended June 30, 2017.

The Company’s net sales revenue increased by 1.2 percent to Rs 45.69 billion compared to Rs 45.14 billion reported last year. The increase in net sales revenue was mainly attributable to increase in sales volumes. The local sales volume of the company during the fiscal year registered a growth of 13.9 percent to 6.07 million tons compared to 5.33 million tons reported last year, whereas export sales volume registered a decline of 32.7 percent to 1.08 million tons compared to 1.61 million tons reported last year.

On a consolidated basis, Lucky Cement reported net profit of Rs 16.22 billion for the fiscal year ended June 30, 2017 which is 9.1 percent higher as compared to last year. It was confident in the domestic market due to both resident and public sector construction markets and large scale infrastructure projects driven by the China-Pakistan Economic Corridor initiative.

ON-GOING EXPANSION PROJECTS PLANS

The cement producer also provided an update on new and on-going expansion projects. Its expansion plans at the Karachi Plant to add a 1.25Mt/yr production line are expected to reach commercial operations in December 2017. It is also in the process of obtaining approvals and authorizations from the state government of Punjab. The cement producer also provided an update on new and on-going expansion projects.

Its expansion plans at the Karachi Plant to add a 1.25Mt/yr production line are expected to reach commercial operations in December 2017. It is also in the process of obtaining approvals and authorizations from the state government of Punjab to build a new 2.3Mt/yr plant.

SUSTAINABILITY

Business leaders across the globe, appreciate the fact that business is not just about making quality products or satisfying your clients. Beyond the requirement of legal settings, businesses are now required to manage the wider social and environmental consequences of their actions.

Lucky Cement is actively contributing towards the welfare of the society and plays its part in areas of education, environmental awareness, and health and community development. Believing in fair and transparent practices Sustainability Report 2011 has been assessed with a Level Check ‘A’ by the Global Reporting Initiative (GRI).

For the year 2012, benchmark was to take the process a notch up and improve the reporting pattern and ensure continuation of our success. In doing so, sustainability report for 2012 “Active Sustainability” has successfully achieved Application Level ‘A+’ from GRI. This makes us the first and only Pakistani Company to have this honor. The report contains details and data for the year ended June 2012 demonstrating commitment to sustainable development and a transparent picture of the company’s multi-dimensional sustainability initiatives.

AWARD WINNING

Lucky Cement won the Health, Safety and Environment Award in the category of “The Responsibility for Health and Safety,” at the 2017 International Environment, Health & Safety Awards Gala. The ceremony was held at a local hotel Karachi in association with the 3rd International Summit on Environment, Health, and Safety & Security.

The award ceremony was organized by The Professionals Network (TPN) and supported by the Fire Protection Agency of Pakistan (FPAP) to encourage the health, safety and environment best practices amongst organizations in Pakistan.

Lucky Cement is committed to cultivating an environment that ensures HSE is embedded at its core. By fortifying its HSE goals with the pillars of perpetual progress, the company is in pursuit of a 100 percent safe and secure workplace for its employees and all stakeholders engaged in its business operations. Lucky Cement follows a comprehensive Environmental Management and Monitoring Plan.

The management strongly believes in following environmentally sustainable practices regarding the management of gaseous emissions, particulate matter, noise levels, effluents (sewage) and solid waste.

Sustainable development forms a significant part in Lucky Cement’s business strategies and is one of the key factors that have led the company towards progress and growth.

Earlier this year, Lucky Cement won the Management Association of Pakistan’s top 32nd corporate excellence award for 2016, and also received the 6th CSR Award for its Waste Management & Recycling policies at the 9th Corporate Social Responsibility (CSR) Summit, organized by National Forum for Environment and Health. The company also won another award for its Stakeholder & Employee Engagement efforts at the 6thCorporate Social Responsibility Summit & Awards ceremony, organized by The Professionals Network.

Lucky Cement has a solid history of exceptional growth performance since its inception in 1993. It is one of the largest producers and leading exporters of quality cement in Pakistan, with a domestic production capacity of 7.75 million tons per annum.

Lucky Cement is an ISO-9001:2008 and 14001:2004 certified company and possesses many other international certifications including Bureau of Indian Standards, Sri Lankan Standard Institute, Standards Organization of Nigeria, Kenya Bureau of Standards and South African Bureau of Standards.

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