Chakwal Cement is likely to get Rs 5 billion funding from a consortium of banks soon to run the plant and complete the target of production expected to start from next year. According to sources in capital market, the company has sought funding from several banks in the country to run the plant in a more efficient manner. Bankers were not available to comment on when the loan would be provided to the company.

But market sources said that the company would go into commercial production early next year, as the new owner--Orascom, the Egyptian giant--is understood to have started infrastructure build-up.

Following purchase of 51 percent controlling shares in Chakwal Cement Company Limited (CHKC) from the Chakwal Group of Industries late last year, Orascom Group had planned an initial investment of $100 million in the cement project.

A delegation of Orascom Telecom SAE, led by the company's chairman Naquib Sawris, had met Prime Minister Shaukat Aziz in Islamabad on October 22 and apprised of the Group's interest in cement industry through the purchase of majority shares in Chakwal Cement.

With the production capacity of 2.2 million tons per annum, Chakwal Cement would possibly be one of the three largest cement plants in the country. The share in Chakwal Cement is currently trading at Rs 9.25 per share.

Compared to that, some of its peers, such as D G Khan Cement is priced at Rs 71 and Cherat Cement at Rs 87.95 per share, for the 10-rupee share.

Copyright Business Recorder, 2005