DG Khan Cement, one of Pakistan’s leading cement manufacturers, has announced its intention to establish a wholly-owned subsidiary in the United States.
The company disclosed this plan in a notice to the Pakistan Stock Exchange (PSX) on Friday.
According to DG Khan Cement, “The Board of Directors of DG Khan Cement Company Limited has approved the management’s proposal to explore the establishment of a wholly owned subsidiary of the company in Houston, Texas, United States of America (USA), to be named ‘DG CEMENT USA LLC’.”
The establishment of this subsidiary is contingent upon obtaining all necessary regulatory approvals in both Pakistan and the USA, the company added.
Earlier this year, DG Khan Cement revealed its plan to export 600,000 tons of low-alkali cement annually to the US, projecting potential earnings of approximately $360 million for Pakistan.
Executive Director of DG Khan Cement, Farid Fazal, previously stated that the company is also in discussions with buyers from London, France, and Germany, and plans to enter the European market following CE certification.
Fazal highlighted the need for Pakistan to expand its cement exports to major markets like the USA, which are experiencing increased demand for construction materials and seeking new supply sources.
However, Pakistan’s cement industry has faced challenges, with capacity utilization dropping to a record low of 54.64% during FY24 (July-April), as reported in the Economic Survey 2023-24.
DG Khan Cement operates three cement plants located at Dora Ghazi Khan, Kalar Kahar, and Hub, with a total production capacity of 25,000 tons per day (7.5 million tons annually), solidifying its position as a major player in the Pakistani market.
In a similar move, Ismail Industries Limited, known for its confectionery products, recently announced plans to establish a subsidiary in Abu Dhabi, UAE.
