DG Khan Cement establishes Letter of Credit for Pakistan's largest clinker line

D.G. Khan Cement Company Limited has established a letter of credit to develop what is expected to be Pakistan's largest single clinker production line, with a capacity of 11,000 metric tons/day, a company source told Platts on Jan. 6.

The clinker line will be installed as a brownfield expansion at the company's Mauza Khofli Sattai plant in Dera Ghazi Khan, representing a major capacity addition at an existing facility. In a filing to the Pakistan Stock Exchange, the producer said the opening of the letter of credit marks a key step toward implementation of the project.

Clinker capacity additions play a central role in cement sector expansion, as they enhance production flexibility and cost efficiency, particularly during periods of stronger demand.

DG Khan Cement serves domestic markets through a dealership network of more than 2,200 dealers, while also exporting cement to neighboring markets, including Bangladesh and Afghanistan, as well as to overseas destinations such as Central Africa.

The company source added that output from the proposed clinker line is expected to be largely absorbed by the domestic market, although the company would also have the ability to export clinker from the site.

Platts, part of S&P Global Energy, assessed cement clinker FOB Vietnam at $32/mt on Dec. 24, stable week over week. Platts also assessed cement clinker FOB Turkey at $45/mt on Dec. 24, down from $45.25/mt FOB the previous week.