Karachi, In a significant move towards sustainable practices and future business expansion, the Board of Directors of Lucky Cement Limited, referred to as the "Company," held an emergent meeting on September 16, 2023, announcing two major initiatives.
Renewable Power Projects at Karachi and Pezu Plants
The board has given the green light to a substantial renewable energy venture, approving a 28.8 MW captive wind power project set to be constructed at the Company's Karachi plant. This ambitious project is expected to reach completion by the end of the fiscal year 2024. Furthermore, the board has sanctioned solar power projects, encompassing 6.3 MW and 2.5 MW installations at the Karachi and Pezu plants, respectively. These solar power projects are anticipated to be finalized by the third quarter of fiscal year 2024. These additions come on the heels of the recent commissioning of 25 MW and 34 MW solar power projects at the Karachi and Pezu plants, demonstrating the Company's unwavering commitment to sustainable environmental practices.
The estimated cost for these upcoming projects stands at an impressive PKR 11 Billion, underlining Lucky Cement's determination to bolster renewable energy contributions to the power mix. Beyond ecological benefits, these investments are projected to generate significant cost savings and contribute to the reduction of the country's reliance on imported fuels.
Evaluation of Participation in Equity of Lucky Core Ventures
In a separate development, the Board of Directors has empowered the Company to evaluate its participation in the equity of Lucky Core Ventures ("LCV"), in conjunction with other companies within the Yunus Brothers Group.
LCV operates as a wholly-owned subsidiary of Lucky Core Industries Limited, another subsidiary of Lucky Cement Limited, and is primarily structured to act as a holding company for the future growth projects of Lucky Core Industries Limited. An important milestone in LCV's journey occurred on May 2, 2023, when it issued a Public Announcement of Intention (PAI) to acquire an approximate 75.01% shareholding in Lotte Chemical Pakistan Limited.
The Company's potential participation in LCV's equity is contingent upon the completion of satisfactory due diligence and the acquisition of requisite regulatory approvals, as well as approval from the Company's Board.
These strategic decisions reflect Lucky Cement's ongoing commitment to innovation, sustainability, and expansion as it navigates the dynamic landscape of the industrial sector, with a strong focus on environmental responsibility and strategic investment opportunities.