We understand that there has been a contingency at the South plant of JK Cement. The clinker silo roof suddenly caved-in causing support structural steel and clinker conveying deep bucket conveyor drive station falling into the Silo. This is definitely going to impact the production at the plant and at this stage the clinker and cement production is temporary shut.
Company is taking efforts to make alternative arrangements and to source clinker from external agencies to continue cement grinding. The clinker cannot be produced at this stage at this site as the storage mechanism has turned faulty. Average daily cement production of this unit is 5000 tonnes and management expects that they will be able to recoup ~40-50 per cent of the volume loss through external clinker buy-outs. However, having said that the margin dent is definite as the external clinker buy-outs will lead to significantly low EBITDA.
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