Karachi June 17 2021: Flying Cement Company has successfully completed the installation of new captive power plant of 12 MW at its site in District Khushab and its trial operations are expected to be started during next month, as per company notice published at PSX.
Electricity generation on coal cost PKR7.96 per unit while currently WAPDA
is charging around PKR26 per unit from them
As per Company’s management
The start of this captive power plant will eliminate the dependency on WAPDA and enable the Company to be self-reliant in power consumption whilst also resulting in significant cost saving on account of power going forward. The power plant will be based on coal being the economical source of fuel.
A L S O || R E A D
Coal prices at high of 10 years
The company is also expanding its production capacity besides enhancing its power generation to recoup the demand. Company is installing a new line of 7,700 tons per day of clinker which will take total clinker production capacity to 11,700 tons per day. This capacity is expected to start commercial operations in the 3rd quarter of next fiscal year.
Flying Cement Company Limited has successfully completed the installation and commissioning of Waste Heat Recovery Plant of 7.5 MW at its site, Mangowal, District Khushab during the quarter ended March 31 2021. Adoption of Waste Heat Recovery and coal based power plant will result in significant saving to the company.
The stock has rallied 120 percent during year to date on these efficiency
and production enhancement measures, as per data available on PSX website.
Management of the company foresees future outlook of cement industry as promising and demanding. The company is quite hopeful for improvement in domestic sales on account of Government spending on mega projects, multipurpose water reservoirs / Dams and 5 million housing schemes including CPEC which will help the company to maintain its growth in the current financial year.
