LAHORE, March 30: DG Khan Cement Company has signed a contract with a Danish company for the supply of complete 4,000 tons per day cement production plant at Khairpur, Chakwal.

The site selected for the new plant is suited for its proximity to abundant deposits of good quality raw materials. Since the plant is based on coal as fuel, it will give a big boost to the local coal industry, a news release issued on Tuesday said.

The new plant to be supplied by FL Smidth & Co A/S Denmark is based on the latest state-of-the-art technology, capable of producing 1.240 million tons cement annually.

"A unique feature of this contract is supply of heat efficient two support rotary kiln system, first of its kind in Pakistan and world's largest vertical cement grinding mill to be manufactured by the supplier company," the release said.

The current production capacity of cement from the two existing units at DG Khan Cement Company is 6,200 tons a day, which is being optimized for a further increase of 500 tons per day. With the completion of the new project, the total installed capacity of the company will rise over 3.32 million tons per year.