Cement exports to US begin

Company receives export order of 600,000 tons per year worth $360m

KARACHI:

Pakistan has entered the US construction market for the first time in history after kick-starting the export of cement to the world’s leading economy.

“We have received an export order of 600,000 tons per year worth $360 million from the US,” DG Khan Cement Executive Director Farid Fazal said while briefing media on Wednesday.

“Second consignment of 37,500 tons of cement left Pakistan this morning for the US market,” he said, adding that the first consignment of 50,000 tons was dispatched in June 2022.

“The US has stopped setting up new cement manufacturing plants in the wake of climate change,” he revealed. As a result, it is aggressively importing the construction material from 25 countries which include Canada, Mexico, Turkiye and Vietnam. Now, Pakistan has also got access to the western construction market.

“Third consignment will leave for the US next month,” he said. “Pakistani cement manufacturers have the potential to grab 10-15% of the US export market.”

In addition to this, the company is in talks with buyers in London, France and Germany and the company will be entering the European market soon after getting the CE certification.

He underscored that Pakistan had a huge surplus production capacity of 20 million tons of cement. It has an installed capacity of 65 million tons compared to the domestic demand for 40 million tons.

“At present, Pakistan is exporting 4 million to 5 million tons a year,” said Fazal.

He proposed that the country needed to expand its exports to big markets like the US as the demand for construction material had increased manifold.

Published in The Express Tribune, January 19^th, 2023.

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