Cement industry posts positive results
LAHORE, July 4: The cement industry’s dispatches for the year 2011-12 were the highest ever in the history of the country, a statement issued by the All Pakistan Cement Manufacturers Association said.
Local cement dispatches increased to a record level of 23.947 million tons, registering an increase of 8.84 per cent.
However, increase in input costs with electricity, diesel, paper sack and gypsum prices registering an increase, contributed to some pressure along with rupee devaluation.
Meanwhile, exports declined by 9.12 per cent to 8.568 million tons, with 2011-12 being the third straight year when the cement exports declined.“The cement sector added three million tons additional production capacity in the year 2011-12 as its total production capacity
increased by 7.23 per cent to 44.217 million tons from 42.235 million tons in 2010-11,” the statement read.
However, for the year 2011-12 its capacity utilisation remained under pressure due to sluggish export demand, non-revival of construction sector in the country, lack of investment in housing sector and government inability to initiate mega projects.
From the peak level of 10.752 million tons of 2008-09, the export decreased to 8.568 million tons in the year 2011-2012, showing a decline of 20.4 per cent.
The hype created on trade with India has so far not been materialised and export in that market was only 0.605 million tons in 2011-12 which has been well below the expectation of the cement sector, the statement added.