Holcim to invest US $ 100 m on new grinding plant
Anjana Samarasinghe
NEW PLANT: Holcim (Lanka) Ltd, the local player of the Holcim Group
will continue to invest more in the Sri Lankan cement industry.
INVESTMENT: Head of Sustainable Development Holcim (Lanka) Ltd
Rathika de Silva, Chairman of Holcim (Lanka) Ltd Manilal Fernando
and Managing Director/CEO of Holcim Lanka Peter Spirig at the press
conference. Picture by Sumanachandra Ariyawansa |
Chairman Holcim (Lanka) Ltd, V. Manilal Fernando, announcing the
launch of their sustainability report and annual review said, they will
continue to invest in Sri Lanka. At the moment they are ready with an
investment to set up a grinding plant in Trincomalee near the
Trincomalee harbour.
The new grinding plant will reduce our overland transportation as it
is situated near the harbour, he said.
The Government expects to have a new harbour in Hambantota. When the
government develops more harbours in Sri Lanka Holcim will set up more
grinding plants where harbours are situated and keep on expanding, he
said.
Holcim intends to invest nearly USD 10 million for the grinding
station and clinker terminal in Trincomalee, which would create around
100 direct employment opportunities and nearly 500 indirect employment
in Eastern Province. Since 1996 Holcim Lanka has invested an estimated
USD 110 million in Sri Lanka.
Managing Director/CEO of Holcim Lanka Peter Spirig said Holcim Lanka
saw its sales portfolio grow by 10% in 2006 compared to 2005. During the
same period, net revenue grew by 25% and is showcased at Rs. 10.4
billion on account of better price realisations, despite the Government
imposed price control on cement in November 2006.
These price control measures hampered the recovery of increasing
costs, especially due to an increase in electricity tariff by
approximately 30%. Operating profit increased by 33% and net income grew
by 55% net of unusual expenses.
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