Pakistani cement maker, Pioneer Cement, has paved the way to expand its capacity with the acquisition of Galadari Cement (Gulf) Ltd (GCGL). According to a release to the Pakistan Stock Exchange, the company has signed a memorandum of understanding with the major shareholders of GCGL for the acquisition.
GCGL owns a site at District Hub in Baluchistan in the south of Pakistan. Despite construction work at the site starting in 1998, only around half of the work has been completed, according to local media reports.
Pioneer Cement “does not wish to immediately complete the construction at the site,” said Karim Punjani of Elixir Securities. “We believe that the primary reason to acquire GCGL is to hold a strategic place in the new domestic market (southern region) in order to cater to upbeat domestic demand and enjoy premium pricing.”
Cement demand in the country has been rising on the back of significant infrastructure investments. Sales in the southern region were up 9.47% year on year in FY2017 at 6.51 million t.
Read the article online at: https://www.worldcement.com/indian-subcontinent/12102017/pioneer-cement-buys-galadari-cement/