Diversion of Pakistan’s Cement Exports

from Middle East

Presentation by:
M. Asadullah
Manager Export Marketing
Lucky Cement Limited
Pakistan
 Salient Features of Cement Industry of Pakistan

 18 Cement Companies have 25

Integrated Production Units.
 Annual Capacity of Cement Industry is
44.77 million tons per annum (mtpa)*
 On the basis of Production Units’
location, industry is bifurcated in two
zones i.e. North & South. Break-up is:
 North Zone 85%
 South Zone 15%
 Pakistan is among top 20 leading
producers of cement in the world
 Pakistan is among the top 5 leading
exporters of cement in the world

*as per All Pakistan Cement Manufacturers Association (APCMA) Map of Pakistan
Yearly Growth in Capacity of Pakistani Cement Industry

Capacity Increase/
Year 50.00
(million tons) (Decrease)
45.00
2001-02 16.10 3.65 %
40.00
2002-03 16.32 1.37 %
35.00
2003-04 17.28 5.87 % 30.00

2004-05 17.91 3.65 % 25.00

2005-06 20.96 17.01 % 20.00

15.00
2006-07 30.62 46.13 %
10.00
2007-08 37.80 23.45 %
5.00
2008-09 42.41 12.18 % -

2009-10 45.47 7.22 %

2010-11 42.50 (6.53 %)
2011-12 44.77 5.34 %
Statistics as per APCMA website
www.apcma.com
Company-wise Production Capacities in Pakistan

Sr. No. Name Of Unit Production Capacity

1 Lucky Cement Limited (Karachi & Pezu) 7,512,000

2 Bestway Cement Limited (Hattar & Chakwal) 5,915,250
3 D.G.Khan Cement Limited (D.G.Khan & Chakwal) 4,221,000
4 Fauji Cement Company Limited (Fateh Jang) 3,433,500
5 Maple Leaf Cement Factory Limited (Daudkhel) 3,370,500
6 Askari Cement Limited (Wah & Nizampur) 2,677,500
7 Kohat Cement Company Limited (Kohat) 2,677,500
8 GharibWal Cement Limited (Jehlum) 2,110,500
9 Lafarge Pakistan Cement Company Limited (Chakwal) 2,047,500
10 Pioneer Cement Limited (Khushab) 2,030,250
11 Dewan Hattar Cement Limited (Hattar & Dhabeji) 1,921,500
12 Attock Cement Pakistan (Lasbela) 1,795,500
13 Flying Cement Limited (Lilla) 1,197,000
14 Cherat Cement Company Limited (Nowshera) 1,102,500
15 Al-Abbas Cement Limited (Dadu) 945,000
16 Fecto Cement Limited (Sangjani) 819,000
17 Dandot Cement Limited (Jehlum) 504,000
18 Thatta Cement Limited (Thatta) 488,250
Total 44,768,250

Statistics as per APCMA website www.apcma.com

 Increasing Share of Exports in Pakistan’s Cement Sales

Local Despatches Exports Total

Years million million
% Share % Share 40.00
tons tons million tons

2001-02 9.83 98.89 0.11 1.11 9.94 35.00

2002-03 10.98 95.90 0.47 4.10 11.45 30.00

25.00
2003-04 12.55 91.87 1.12 8.13 13.66
20.00
2004-05 14.79 90.46 1.57 9.54 16.35
15.00
2005-06 17.05 91.91 1.51 8.09 18.55
10.00
2006-07 21.03 86.69 3.23 13.31 24.26
5.00
2007-08 22.58 74.55 7.72 25.45 30.29
-

2008-09 20.33 64.93 10.98 35.07 31.31

2009-10 23.57 68.88 10.65 31.12 34.22
Local Sales Exports
2010-11 22.00 70.00 9.43 30.00 31.43

2011-12 23.95 73.65 8.57 26.35 32.52 Statistics as per APCMA website
www.apcma.com
 Top 10 Cement Exporting Countries of World (2011)

Value Quantity (%)

Country
(US$ Millions) (millions Tons) Share
Turkey 914 14.45 9.5
Leading Cement Exporters of the World
Germany 753 7.87 7.8
1,000,000
900,000
China 620 10.61 6.5
800,000
Thailand 567 12.16 5.9 700,000
600,000
Pakistan 465 9.11 4.8 500,000
400,000
Republic of 300,000
347 9.96 3.6
Korea 200,000
Japan 334 9.79 3.5 100,000
-
Turkey Germany China Thailand Pakistan
Spain 321 4.37 3.3
Value in USD thousand
Canada 270 3.42 2.8

Belgium 262 2.83 2.7 Statistics as per ITC (www.trademap.org)

Others 4,749 56.71 49.6 Product : 2523 Cements, Portland,
aluminous, slag, supersulfate & similar
Total 9,604 141.28 100.0 hydraulic cements
 Declining Cement Exports from Pakistan to ME

2008 2009 2010 2011

Regions/
Value US$ Value US$ Value US$ Value US$
Countries % Share % Share % Share % Share
(millions) (millions) (millions) (millions)
Middle East 254.22 45% 178.58 34% 96.66 21% 47.87 10%

Afghanistan 150.98 27% 149.03 28% 184.39 40% 243.63 52%

Africa 94.46 17% 157.18 30% 121.81 27% 108.17 23%

India & Sri
67.91 12% 45.99 9% 53.51 12% 64.50 14%
Lanka
Total 567.57 100% 530.78 100% 456.38 100% 464.17 100%

2008 India & Sri

2011 Middle
India & Sri
Lanka Lanka East
12% 14% 10%
Middle
Africa East
17% 45% Africa
23% Afghaistan
53%
Afghaistan
26%
Statistics as per ITC (www.trademap.org)
Product : 2523 Cements, Portland, aluminous, slag, supersulfate & similar hydraulic cements
 2008: Pakistan’s Top 10 Cement Markets

Value in
Importing Countries US$ % Share
(milions)
 By Sea Export
United Arab Emirates 71.71 17
Qatar 70.61 17 UAE was largest importer with
India 64.51 15 value of US$ 71.71 millions
Oman 54.27 13  Seven out of top ten countries
Djibouti 46.10 11 from Middle East
Kuwait 25.40 6  Only three countries are not from
Sudan 23.46 6 Middle East
Iraq 15.10 4
Yemen 8.47 2
Bahrain 7.75 2
 By Land Export
Others 32.18 8 Afghanistan was largest importer
Total Excluding Afghanistan 419.54 100 with value of US$ 151 millions
Afghanistan 150.98 -
Total (Whole World) 570.53 -
 2008: Pakistan’s Top 10 Cement Markets

Value in US$
Importers
(milions)
United Arab Emirates 71.71
Qatar 70.61
India 64.51
Oman 54.27
Djibouti 46.10
Kuwait 25.40
Sudan 23.46
Iraq 15.10
Yemen 8.47
Bahrain 7.75
Others 32.18
Total Excluding Afghanistan 419.54
Afghanistan 150.98
Total (Whole World) 570.53
 2011: Pakistan’s Top 10 Cement Markets

Value in
Importing Countries US$ % Share Seaborne Export
(millions)  Iraq was the largest importer with
Iraq 47.50 21 value of US$ 47.5 millions
India 39.51 18  Only Iraq from Middle East
Djibouti 27.25 12
Tanzania 25.42 11
 Seven out of top ten countries from
Sri Lanka 24.99 11
Africa
South Africa 24.85 11  South Asia: India and Sri Lanka as
Mozambique 11.35 5 2nd and 5th Largest Markets
Madagascar 7.43 3
Comoros 7.07 3
By Land Export
Kenya 2.36 1
Others 3.78 2  Afghanistan remained to be largest
Total Excluding Afghanistan 221.52 100 importer with value of US$ 243
Afghanistan 243.63 - millions
Whole World 465.15 -
 2011: Pakistan’s Top 10 Cement Markets

Value in
Importing Countries US$
(millions)
Iraq 47.50
India 39.51
Djibouti 27.25
Tanzania 25.42
Sri Lanka 24.99
South Africa 24.85
Mozambique 11.35
Madagascar 7.43
Comoros 7.07
Kenya 2.36
Others 3.78
Total Excluding Afghanistan 221.52
Afghanistan 243.63
Whole World 465.15
The Largest Cement Manufacturer & Exporter of Pakistan
Lucky Cement Ltd (LCL) as Market Leader Pakistan

 Two Strategically Located Factories producing 25,000 M. Tons/day

 Export Licenses from National Standard Bodies and ISO Certifications
 Diversified Export Markets
 Middle East, Africa and South Asia
 Highly Cost-Efficient Production
 Captive Power Generation
 Waste –Heat Recovery
 Cost Savings by TDF and RDF
 Highly Advanced Supply Chain Management
 Exports of Loose and Bagged Cement
 Exclusive Berth & 24,000 M. Tons Storage Capacity at Karachi Port
 Pneumatic Pumping System at Port
 Investments and Expansion Plans in Emerging Markets
 JV signed for establishing Production Unit at DR Congo
 Planning to have Grinding Mill at Iraq
 Acquired 75% shares of ICI Pakistan
Countries Lucky Cement has Exported

S. No. Country S. No. Country

1 Angola 19 Myanmar
2 Afghnistan 20 Mayotte
3 Bahrain 21 Mozambique
4 Cameroon 22 Namibia
5 Comoros 23 Oman
6 Djibouti 24 Qatar
7 Egypt 25 Seychelles
8 Ethiopia 26 Somalia
9 Guinea 27 South Africa
10 India 28 Sri Lanka
11 Iran 29 Sudan
12 Iraq 30 Tajikistan
13 Jordan 31 Tanzania
14 Kenya 32 UAE
15 Kuwait 33 Uganda
16 Madagascar 34 Yemen
17 Maldives 35 Zimbabwe
18 Mauritius 36 Rawanda
 Captive Power Generation &
Waste Heat Recovery

 Lucky Cement developed 100%

Captive Power Generation units
 Our two power plants have installed
capacity of 175 MW
 The total number of generators on
both the plants is 22 (11 are Wartsila,
7 are Catmak , 4 are of Rolls Royce)

 Lucky Cement has WHR project

that qualifies under the Clean
Development Mechanism within the
framework of Kyoto Protocol.
 SINOMA (Chinese Technology),
when operated at 80% efficiency
has power generation capacity of
15MW/HR
 Multi-Purpose Transportation Fleet &
Storage / Loading Capacity at Port

 Fleet comprising of 40 trailers & 71

bulkers (27 of 70 tons & 44 of 50 tons)
 Each trailers can carry goods up to 80
tons and being used for transport of
Bagged Cement and Coal
 Bulkers used for transportation of
loose cement

 In 2008 Lucky Cement established State-of-the-art

Pneumatic Loose Cement Loading Plant at Karachi
Port.
 The Plant has capacity to load 9,000-10,000 Tons of
loose cement per day
 4 Silos at Port having 6,000 each storage capacity
 Thanks
Muhammad Asadullah
Manager Export Marketing
Lucky Cement Limited
6-A, Mohammad Ali Society
A. Aziz Hashim Tabba Street
Karachi - 75350, Pakistan
Tel: +92 21 111 786 555 Ext: 336
Website: www.lucky-cement.com
20
21