D.G. Khan Cement Company Limited has taken a major step toward establishing Pakistan’s largest single clinker production line, with a capacity of 11,000 tonnes per day, following the establishment of a letter of credit, the company disclosed to the Pakistan Stock Exchange (PSX) on Wednesday.

The new clinker line will be set up as a brownfield expansion at the company’s Mauza Kholi Sattai site in Dera Ghazi Khan, marking a significant capacity addition at an existing facility. According to the notice submitted to the PSX, the letter of credit represents a key milestone toward execution of the project.

Clinker capacity expansion is critical for cement sector growth, as it directly impacts production capabilities and cost management, especially amid rising domestic demand. While the company has not revealed the total project cost or timeline, the scale of the installation positions it as the largest single-line clinker project in Pakistan to date.

D.G. Khan Cement, a Nishat Group company, is one of the country’s leading cement manufacturers, operating multiple production facilities nationwide. Incorporated in 1978, the company primarily produces clinker, Ordinary Portland Cement, and Sulphate Resistant Cement, contributing significantly to Pakistan’s cement industry.