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Ghori Cement Plant Faces Bankruptcy

in Afghan Business

Ghori Cement Plant Faces Bankruptcy

largest cement company is facing bankruptcy at its second cement plant if it cannot secure sufficient bank financing, the company’s officials said Saturday.

The wholly Afghan-owned Ghori Cement factory established its second plant last July in the main city of northern Baghlan province, Pul-e-Khumri, with a total capital of $28 million.

The head of the company blamed its struggles on the lack of government cooperation.

“The lack of government cooperation in helping us get both small and large loans and bank guarantees has caused the company to now face bankruptcy,” Ghori Cement Company chief Abdul Karim Farukh told TOLOnews.

“Efforts to overcome this issue are underway.”

Labourers working for Ghori Cement said the company was paying low salaries and that the prospect of bankruptcy meant their salaries had been frozen, with no hopes of a raise.

The former government-owned company is a leading cement producer for Afghanistan, producing thousands of tonnes of cement on a daily basis.

It previously has flagged plans for a third cement plant in Baghlan which it said would be ready for production by the end of 2013.

The impact of the second plant’s possible bankruptcy on these plans is not clear at this stage.

The company, which was privatised in 2007, is understood to have a total capital worth of $50 million.

Afghanistan is estimated to use more than 300 million tonnes of cement per year, most of which is imported from neighboring countries.

Source: Tolo News

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