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D.G. Khan Cement Company Limited has established a letter of credit to set up Pakistan’s largest single clinker production line with a capacity of 11,000 tonnes per day, according to a disclosure submitted to the Pakistan Stock Exchange (PSX) on Wednesday, in accordance with the Securities Act, 2015 and PSX regulations.

The company said the new clinker line will be installed as a brownfield expansion at its Mauza Kholi Sattai site in Dera Ghazi Khan, marking a major capacity addition at an existing location.

“This is to inform you that D.G. Khan Cement Company Limited has established a Letter of Credit for setting up Pakistan’s largest single clinker production line of 11,000 tons per day (Brownfield) at Mauza Kholi Sattai, Dera Ghazi Khan Site,” read the company’s notice sent to the local bourse. 

The disclosure indicates that the establishment of the letter of credit represents a key step toward execution of the project.

Clinker capacity expansions are a critical component of cement sector growth, as they directly determine a plant’s ability to produce cement and manage costs efficiently, particularly during periods of rising demand.

The company did not disclose the total project cost or timeline in the filing. However, the scale of the project positions it as the largest single-line clinker installation in the country to date.

D.G. Khan Cement Company Limited, a Nishat Group company, is one of Pakistan’s leading cement manufacturers and operates multiple production facilities across the country. It was incorporated in 1978 as a public company limited by shares under the then Companies Act, 1913 (now Companies Act, 2017), and is primarily engaged in the production and sale of clinker, Ordinary Portland Cement and Sulphate Resistant Cement.