Lucky Cement Targets 18.8m Tonnes Of Annual Capacity In Pakistan
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✧ GENERATE BRIEFING
Lucky Cement Limited has approved a 3.2 million-tonne-per-annum (MTPA) brownfield expansion at its Karachi plant, raising its total domestic installed cement capacity in Pakistan to an expected 18.8 MTPA upon project completion. The Board of Directors approved the expansion on October 28, 2026, with commercial operations targeted for December 2027.Key project highlights and operational initiatives:Karachi Plant Expansion: The project will integrate with a grinding facility currently being installed at the Karachi plant, increasing the facility's installed capacity to 8.55 MTPA.Renewable & Alternative Energy Rollout: The board approved multiple green power projects across its Karachi and Pezu facilities, scheduled for completion between Q4 FY27 and Q2 FY28:60% Renewable Coverage: Alternative and renewable energy sources are expected to meet approximately 60% of the company's total cement operational energy requirements in Pakistan, including the added demand from the new Karachi expansion.
Lucky Cement Limited has approved a 3.2 million-tonne-per-annum (MTPA) expansion at its Karachi plant, taking the company’s total installed cement capacity in Pakistan to an expected 18.8 million tonnes annually once the project is completed.
The company’s board of directors approved the expansion on October 28, with commercial operations expected to begin by December 2027, according to a filing submitted to the Pakistan Stock Exchange (PSX).
The project will be integrated with a cement grinding facility currently being installed at the Karachi plant. Upon completion, the Karachi facility’s installed cement capacity is expected to increase to 8.55 MTPA.
Combined with capacity at the company’s Pezu plant, the expansion will raise Lucky Cement’s total installed capacity in Pakistan to 18.8 MTPA.
The company said the investment comes amid domestic and growing export demand for cement and clinker.
Lucky Cement Approves Renewable Energy Projects
Alongside the capacity expansion, the board approved additional energy projects at its Karachi and Pezu plants to increase the contribution of renewable and alternative energy sources to its operations.
At the Karachi plant, the company plans to install additional wind turbines with a combined capacity of 22.5 megawatts (MW), along with a 10 MW waste heat recovery (WHR) plant.
At the Pezu plant, the approved projects include a 15 MW solar power plant and a 15 MW battery energy storage system (BESS).
The projects are scheduled for completion between the fourth quarter of fiscal year 2027 and the second quarter of fiscal year 2028.
Lucky Cement expects renewable energy sources to meet approximately 60% of its cement operations’ energy requirements after the projects are completed, including the additional demand from the new Karachi expansion.
Overseas Expansion to Lift Total Capacity
Lucky Cement is also expanding its international operations through the ongoing expansion of Nyumba Ya Akiba in the Democratic Republic of Congo (DRC).
Following completion of the Karachi expansion and the ongoing overseas project, the company’s consolidated production capacity across Pakistan and its international operations is expected to reach 26.65 MTPA.
The company said the Karachi project would further consolidate its position as Pakistan’s largest cement manufacturer and exporter of cement and clinker, while its overseas operations would continue to support its international footprint.
Focus on Capacity and Energy Efficiency
The approved projects combine additional production capacity with investments in energy generation, recovery and storage.
For cement manufacturers, energy costs are an important operating consideration because cement production requires substantial thermal and electrical energy. Wind and solar generation, waste heat recovery and battery storage can help diversify energy sources and manage reliance on conventional electricity supplies.
However, the actual benefits will depend on project execution, operating performance, energy availability and prevailing market conditions.
Lucky Cement’s expansion is expected to increase its production capacity by 3.2 million tonnes annually once operational, while its energy projects are intended to increase the share of its energy needs met through renewable and alternative sources.
