A file photo of Lucky Cement plant. PHOTO: LUCKY CEMENT
Assistant Commissioner Aun Haider Gondal, along with other officials of the district administration, visited the cement factory near Dera Ismail Khan to check its compliance with environmental standards. They, however, found the factory not conforming to prescribed standards and ordered its closure on January 1.
Their visit came after locals of the area complained of excessive pollution caused by the factory during a meeting with the deputy commissioner last month. When contacted, Gondal confirmed the development.
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“The plant was not meeting environmental standards,” Gondal told Daily Express. “The hearing will now be held with the Environmental Protection Agency, K-P. That will decide the fate of the plant.”
Dr Muhammad Bashir Khan, director general of the EPA, K-P, said the one of the four plants at the factory, called Plant B, has been shut down. “The plant has been shut down and will not be opened until the company complies with environmental standards,” Dr Bashir told The Express Tribune.
Assistant commissioner and other officials inspect Lucky Cement plant. PHOTO: K-P GOVT“The hearing was held on January 3, but the date of the next hearing has not been fixed yet. Until then, Plant B shall remain closed.”
However, Lucky Cement denied that its plant was shut down, but an official of the company confirmed that government officials did visit the factory.
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“Lucky Cement plants in Pakistan are operating as per the normal routine of the company,” said the official company statement when asked if any of its plants had been shut down. “The plants are not facing any unscheduled shutdown and sales and cement dispatches are progressing as per normal routine.”
However, upon being pressed, a company official admitted that government representatives had visited the company premises near Dera Ismail Khan.
“Yes, the government officials visited the plant. It does affect our reputation (the fact that government officials inspected the site). However, the plant is still operational."
When contacted again, Gondal said the inspection occurred on January 1 and the plant’s current fate lay with the EPA, K-P. The EPA hearing, the first of which was held on January 3, is ongoing.
However, he said he was now on “leave” and could not give any further updates.
The deputy commissioner, who authorised the inspection, did not respond to queries despite repeated attempts.
The official from Lucky Cement said the factory in K-P features a waste heat recovery plant that addresses environmental concerns to a great extent. “These concerns raised by locals are baseless and motivated by political reasons.”
Choice company for asset management companies
The company’s total production capacity is 7.75 million tons per annum. Its plant in Pezu has a total capacity of 3.79 million tons.
As many as 7% of Al Meezan Investment Management’s stock fund, whose fund size is Rs46.91 billion, is invested in Lucky Cement, according to its fund manager report for December.
This shows that the entity is a choice company for leading asset management companies in Pakistan.
Similarly, NBP Fullerton Asset Management stock fund, whose size is over Rs15 billion, has an asset allocation of 3.3% in the company, according to their latest available fund manager’s report.
The size of the stock fund of UBL Fund Managers is over Rs6.1 billion and the fund has an asset allocation of 3.7% in Lucky Cement.
The Pezu plant of Lucky Cement gives it an advantage to export products to Afghanistan, an important cement export market for Pakistan. Its other plant located near Karachi helps it export through the sea route. The company’s local market share is over 16% and its share in Pakistan’s total cement exports is over 20%.
Apart from Pakistan Stock Exchange (PSX), the company is also listed on the London Stock Exchange.
The company’s share price at the PSX was Rs868.68, down Rs3.77 during Friday’s trading session.
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