Holcim Trinco terminal gets nod

Hiran H.SENEWIRATNE

Holcim Lanka, Sri Lanka’s unit of cement multinational got approval for a long-delayed import facility in Trincomalee which will be a multi-million dollar plan to revive a defunct factory in the north, its Chief Executive Officer Peter Spirig said.

Spirig speaking to the Daily News Business the company plans to set up a cement import terminal and later a grinding mill. There has been some delay. We wanted it five years ago. We’ve now got the necessary permits to put up the facility.

Construction will start next year. Further, the investment figures for the construction of the grinding mill is also under review with the coming down of equipment prices, he said.

Without elaborating he said the company will be eligible for incentives like tax breaks given by the Government for investments in the Eastern region.

One of the reasons for Holcim to take this initiative is since the government has launched a major plan to revive the economy in the East and for inviting investment with the dawn of peace in the Eastern Province.

Cement demand has slumped this year as the economy slowed down and is seen by Holcim as remaining flat next year although an end to the conflict could suddenly create new demand.

Spirig said the firm it still keen on reviving a disused cement plant in the northern Jaffna, sitting on a rich deposit of limestone which has also been eyed by others including India’s Birla group.

Reconstruction and new building activity in the east will lead to greater demand for cement in the region.