Lucky Cement approves 3.2 million-tonne Karachi plant expansion
Lucky Cement's board has approved a 3.2 million-tonne-per-annum expansion of its Karachi plant. The company said this will take its installed capacity in Pakistan to 18.8 MTPA once complete.
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- The board approved the Karachi expansion on October 28, according to a stock exchange filing.
- Commercial operations are expected by December 2027.
- The company also plans a 1.6 MTPA addition in the Democratic Republic of Congo.
Lucky Cement, one of Pakistan's largest cement makers, has approved a 3.2 million-tonne-per-annum (MTPA) expansion of its Karachi plant. The company said in a stock exchange filing on Thursday that installed cement capacity in Pakistan will reach 18.8 MTPA when the project is complete.
According to Business Recorder, the board of directors approved the projects on October 28. They are expected to begin commercial operations by December 2027 and will be integrated with a cement grinding facility that is currently being installed at the Karachi plant.
ProPakistani and TechJuice, citing the company's corporate briefing for the first quarter of FY27, reported that Lucky Cement is also expanding abroad. It plans to add 1.6 MTPA to its integrated cement facility in the Democratic Republic of Congo. Construction mobilization there began in the early second quarter of FY28, and the project is expected to be completed within 18 months of commencement.
The briefing also covered energy projects. Lucky Cement plans to add 15 MW of solar capacity and a 15 MW battery energy storage system at its Pezu plant, which would take total installed solar capacity to 104.3 MW. It is also installing wind turbines with a combined 22.5 MW, bringing installed wind capacity to 51.3 MW. The new wind capacity is targeted for commissioning in the second quarter of FY28, and overall renewable capacity is expected to reach 221.6 MW.
On sales, the briefing said domestic volume rose 13 percent to 1.8 million tons in the first quarter of FY27, from 1.6 million tons a year earlier. Domestic market share rose to 16.8 percent from 16.1 percent. Export volume fell 1.9 percent to 0.81 million tons from 0.83 million tons, while export market share increased to 35.2 percent from 31.9 percent.
On a standalone basis, net revenue rose 21 percent to Rs. 41.1 billion from Rs. 33.9 billion. Gross profit rose 14 percent to Rs. 15.1 billion, operating profit rose 12 percent to Rs. 11.8 billion, and profit after tax rose 17 percent to Rs. 17.1 billion from Rs. 14.6 billion.
On a consolidated basis, revenue rose 5 percent to Rs. 131.9 billion and gross profit rose 3 percent to Rs. 34 billion. Operating profit declined 0.7 percent to Rs. 26.6 billion, and profit after tax fell 4 percent to Rs. 22.6 billion from Rs. 23.6 billion.
The company said Pakistan's economic outlook remains cautiously positive, supported by macroeconomic stability, ongoing reforms and stronger external indicators. It added that fiscal pressures, structural challenges and geopolitical risks continue to threaten sustained growth.
Why it matters
Lucky Cement is one of Pakistan's largest cement makers, and the expansion adds capacity for construction across the country.
