This presentation was delivered at a Cement Trade and Strategy Summit held in Nov 2012 at Jumeriah Emirates Tower, Dubai. Although participants were from across Middle East but I was the only Asian Speaker there. Further details of summit can be viewed at: http://www.gmiforum.com/gcc-cfss2012

1. Diversion of Pakistan’s Cement Exports
from Middle East
Presentation by:
M. Asadullah
Manager Export Marketing
Lucky Cement Limited
Pakistan

2. 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
South Zone
85%
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

3. Yearly Growth in Capacity of Pakistani Cement Industry
Year
2001-02
Capacity
Increase/
(million tons) (Decrease)
16.10
3.65 %
50.00
45.00
40.00
2002-03
16.32
1.37 %
2003-04
17.28
5.87 %
30.00
2004-05
17.91
3.65 %
25.00
2005-06
20.96
17.01 %
20.00
2006-07
30.62
46.13 %
15.00
2007-08
37.80
23.45 %
35.00
10.00
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

4. Company-wise Production Capacities in Pakistan
Sr. No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Name Of Unit
Production Capacity
Lucky Cement Limited (Karachi & Pezu)
Bestway Cement Limited (Hattar & Chakwal)
D.G.Khan Cement Limited (D.G.Khan & Chakwal)
Fauji Cement Company Limited (Fateh Jang)
Maple Leaf Cement Factory Limited (Daudkhel)
Askari Cement Limited (Wah & Nizampur)
Kohat Cement Company Limited (Kohat)
GharibWal Cement Limited (Jehlum)
Lafarge Pakistan Cement Company Limited (Chakwal)
Pioneer Cement Limited (Khushab)
Dewan Hattar Cement Limited (Hattar & Dhabeji)
Attock Cement Pakistan (Lasbela)
Flying Cement Limited (Lilla)
Cherat Cement Company Limited (Nowshera)
Al-Abbas Cement Limited (Dadu)
Fecto Cement Limited (Sangjani)
Dandot Cement Limited (Jehlum)
Thatta Cement Limited (Thatta)
Total
7,512,000
5,915,250
4,221,000
3,433,500
3,370,500
2,677,500
2,677,500
2,110,500
2,047,500
2,030,250
1,921,500
1,795,500
1,197,000
1,102,500
945,000
819,000
504,000
488,250
44,768,250
Statistics as per APCMA website www.apcma.com

5. Increasing Share of Exports in Pakistan’s Cement Sales
Local Despatches
Years
million
tons
% Share
Exports
million
tons
Total
% Share
million tons
40.00
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
2003-04
12.55
91.87
1.12
8.13
13.66
25.00
2004-05
14.79
90.46
1.57
9.54
16.35
2005-06
17.05
91.91
1.51
8.09
18.55
20.00
15.00
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
2010-11
22.00
70.00
9.43
30.00
31.43
2011-12
23.95
73.65
8.57
26.35
32.52
-
Local Sales
Exports
Statistics as per APCMA website
www.apcma.com

6. Top 10 Cement Exporting Countries of World (2011)
Country
Value
Quantity
(US$ Millions) (millions Tons)
(%)
Share
Turkey
914
14.45
9.5
Germany
753
7.87
7.8
China
620
10.61
6.5
900,000
Thailand
567
12.16
5.9
700,000
Leading Cement Exporters of the World
1,000,000
800,000
600,000
Pakistan
465
9.11
4.8
500,000
400,000
Republic of
Korea
347
Japan
334
9.96
3.6
300,000
200,000
9.79
3.5
100,000
-
Spain
321
4.37
3.3
Canada
270
3.42
262
2.83
2.7
Others
4,749
56.71
49.6
Total
9,604
141.28
100.0
Germany
China
Thailand
Pakistan
2.8
Belgium
Turkey
Value in USD thousand
Statistics as per ITC (www.trademap.org)
Product : 2523 Cements, Portland,
aluminous, slag, supersulfate & similar
hydraulic cements

7. Declining Cement Exports from Pakistan to ME
Regions/
Countries
2008
2009
2010
2011
Value US$
Value US$
Value US$
Value US$
% 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
Lanka
67.91
12%
45.99
9%
53.51
12%
64.50
14%
567.57
100%
530.78
100%
456.38
100%
464.17
100%
Total
2008
India & Sri
Lanka
12%
Africa
17%
Afghaistan
26%
India & Sri
Lanka
14%
Middle
East
45%
Africa
23%
2011
Middle
East
10%
Afghaistan
53%
Statistics as per ITC (www.trademap.org)
Product : 2523 Cements, Portland, aluminous, slag, supersulfate & similar hydraulic cements

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

9. 2008: Pakistan’s Top 10 Cement Markets
Importers
Value in US$
(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

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

11. 2011: Pakistan’s Top 10 Cement Markets
Importing Countries
Value in
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

14. The Largest Cement Manufacturer & Exporter of Pakistan

15. 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

16. 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

17. Captive Power Generation &
Waste Heat Recovery





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
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)

18. 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

19. 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

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