Inside Financial Markets

Work begins on damaged FCCL production line

Rehabili­tation of Fauji Cement Company Limited’s (FCCL) Production Line-2 has begun and dismantling work is likely to be completed by Aug 31, the company said in a filing with the stock exchange on Monday.

This is the first time FCCL has issued a statement following the accident at its plant on May 29 which brought Line-2 operations to a grinding halt.

“After routine maintenance and repairs of some of damaged parts sequel to the accident on May 29, 2016, Line-1 was made operational on June 15. Daily production of 3,900 tonnes of cement is in progress since then,” the company secretary said.

At the time of the mishap in May, Line-1 was undergoing “planned maintenance”, the statement added.

Line-2 supplied 7,200 tonnes per day of production.

According to the statement, MD FCCL is empowered for initiation of all sorts of rehabilitation works by special board of directors meeting held on June 6.

Analysts said something became clear following the statement issued by FCCL.

The company is not about to replace the damaged mill with a new one — a move which would cost it immensely — instead it is simply repairing the existing one, the analysts noted.

“It also dissipates worry over Line-2 remaining out of service for a longer period which some had thought could stretch up to a year,” a cement sector watcher said.

Baqar Hussain

A Wannabe CFO, just had stepped in the corporate sector, willing to explore every aspect here and learn as mush as i can, awareness for those who dont, get the info where ever possible and stay up to date always.

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Inside Financial Markets was a joint publication of Pakistan Stock Exchange (PSX)and Society of Technical Analysts Pakistan (STAP)