LAHORE –– Fauji Cement’s new cement plant having a clinker capacity of 7200 tons per day has come online and is already showing fine results increasing clinker capacity from 1.1bn tons to an astounding 2.22bn tons. This new captive power plant is a German plant having a capacity of 12 tons per hour and replaces about 170 tons of coal per day as fuel thereby reducing the soaring coal cost margins and enabling reductions in production costs.
Moreover, the company is also planning to enhance this capacity to 36 tons per hour in the near future resulting in greater cost benefits for FCCL.
FCCL has issued 637,824,339 ordinary shares (par value Rs 10) under a 100:92 rights issue at a price of Rs 5/share to existing shareholders in order to increase its authorized capital from Rs 10bn to a sizeable Rs 15bn. This is expected to enable FCCL to finance its new plant cost overruns.