Diversion of Pakistans 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 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
Map of Pakistan

*as per All Pakistan Cement Manufacturers Association (APCMA)

Yearly Growth in Capacity of Pakistani Cement Industry

Year 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09

Capacity 16.10 16.32 17.28 17.91 20.96 30.62 37.80 42.41

Increase/
50.00 45.00 40.00

(million tons) (Decrease) 3.65 % 1.37 % 5.87 % 3.65 % 17.01 % 46.13 % 23.45 % 12.18 %

35.00 30.00 25.00

20.00
15.00 10.00 5.00 -

2009-10
2010-11 2011-12

45.47
42.50 44.77

7.22 %
(6.53 %) 5.34 %
Statistics as per APCMA website www.apcma.com

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
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

Production Capacity
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

Increasing Share of Exports in Pakistans Cement Sales

Local Despatches

Exports

Total million tons

40.00 35.00 30.00 25.00 20.00 15.00

Years 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

million tons

% Share

million tons

% Share

9.83

98.89

0.11

1.11

9.94

10.98
12.55 14.79 17.05 21.03 22.58 20.33 23.57 22.00 23.95

95.90
91.87 90.46 91.91 86.69 74.55 64.93 68.88 70.00 73.65

0.47
1.12 1.57 1.51 3.23 7.72 10.98 10.65 9.43 8.57

4.10
8.13 9.54 8.09 13.31 25.45 35.07 31.12 30.00 26.35

11.45
13.66 16.35 18.55

10.00

24.26
5.00

2007-08
2008-09 2009-10 2010-11 2011-12

30.29 31.31 34.22 31.43 32.52

Local Sales

Exports

Statistics as per APCMA website www.apcma.com

Top 10 Cement Exporting Countries of World (2011)

Value Quantity (US$ Millions) (millions Tons) (%) Share

Country

Turkey

914 753 620 567 465 347

14.45 7.87 10.61 12.16 9.11 9.96

9.5

Leading Cement Exporters of the World

1,000,000 900,000 800,000 700,000 600,000 500,000 400,000 300,000 200,000 100,000 Turkey Germany China Thailand Pakistan

Germany China Thailand Pakistan

Republic of Korea Japan Spain Canada Belgium Others Total

7.8 6.5 5.9 4.8

3.6 3.5 3.3 2.8 2.7 49.6 100.0

334
321 270 262 4,749 9,604

9.79
4.37 3.42 2.83 56.71 141.28

Value in USD thousand

Statistics as per ITC (www.trademap.org) Product : 2523 Cements, Portland, aluminous, slag, supersulfate & similar hydraulic cements

Declining Cement Exports from Pakistan to ME

Regions/ Countries Middle East Afghanistan Africa India & Sri Lanka Total 2008 2009 2010 2011 Value US$ Value US$ Value US$ Value US$ % Share % Share % Share % Share (millions) (millions) (millions) (millions) 254.22 150.98 94.46 67.91 567.57 45% 27% 17% 12% 100% 178.58 149.03 157.18 45.99 530.78 34% 28% 30% 9% 100% 96.66 184.39 121.81 53.51 456.38 21% 40% 27% 12% 100% 47.87 243.63 108.17 64.50 464.17 10% 52% 23% 14% 100%

2008
India & Sri Lanka 12% Africa 17% Middle East 45%

India & Sri Lanka 14%

2011

Middle East 10%

Africa 23%

Afghaistan 53%

Afghaistan 26%

Statistics as per ITC (www.trademap.org) Product : 2523 Cements, Portland, aluminous, slag, supersulfate & similar hydraulic cements

2008: Pakistans Top 10 Cement Markets

Value in US$ (milions) 71.71 70.61 64.51 54.27 46.10 25.40 23.46 15.10 8.47

Importing Countries United Arab Emirates Qatar India Oman Djibouti Kuwait Sudan Iraq Yemen

% Share 17 17 15 13 11 6 6 4 2

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 By Land Export Afghanistan was largest importer with value of US$ 151 millions

Bahrain
Others

7.75
32.18

2
8

Total Excluding Afghanistan

Afghanistan Total (Whole World)

419.54
150.98 570.53

100
-

2008: Pakistans Top 10 Cement Markets

Value in US$ (milions) 71.71 70.61 64.51 54.27 46.10 25.40 23.46 15.10 8.47 7.75 32.18 419.54 150.98 570.53

Importers
United Arab Emirates Qatar India Oman Djibouti Kuwait Sudan Iraq Yemen Bahrain Others Total Excluding Afghanistan Afghanistan Total (Whole World)

2011: Pakistans Top 10 Cement Markets

Value in US$ % Share (millions) 47.50 21

Importing Countries Iraq

India
Djibouti Tanzania Sri Lanka South Africa Mozambique Madagascar Comoros Kenya Others Total Excluding Afghanistan Afghanistan

39.51
27.25 25.42 24.99 24.85 11.35 7.43 7.07 2.36 3.78 221.52 243.63

18
12 11 11 11 5 3 3 1 2 100 -

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
By Land Export Afghanistan remained to be largest importer with value of US$ 243 millions

Whole World

465.15

2011: Pakistans Top 10 Cement Markets

Value in US$ (millions) 47.50

Importing Countries Iraq

India
Djibouti Tanzania Sri Lanka South Africa Mozambique Madagascar Comoros Kenya Others Total Excluding Afghanistan Afghanistan

39.51
27.25 25.42 24.99 24.85 11.35 7.43 7.07 2.36 3.78 221.52 243.63

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. 1 2 3 4 5

Country Angola Afghnistan Bahrain Cameroon Comoros

S. No.

Country

19 Myanmar 20 Mayotte 21 Mozambique 22 Namibia 23 Oman

6
7 8 9

Djibouti
Egypt Ethiopia Guinea

24 Qatar
25 Seychelles 26 Somalia 27 South Africa 28 Sri Lanka 29 Sudan

10 India 11 Iran

12 Iraq
13 Jordan 14 Kenya 15 Kuwait 16 Madagascar 17 Maldives

30 Tajikistan
31 Tanzania 32 UAE 33 Uganda 34 Yemen 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

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