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Sunday, 29 May 2005    
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Industry ready to meet Lanka's cement demand

by L.S.A. Wedaarachchi

Lanka Cement Ltd and Sri Lanka Cement Corporation are geared to cater to the demand for cement prevailing in the country.

A fifteen per cent increase in the annual demand for cement is envisaged by the cement industry this year. The Task Force for rebuilding the nation (TAFFREN) has also projected that the country needs 450,000 metric tonnes of cement for housing and 350,000 metric tonnes of cement to repair the buildings damaged by the tsunami, over the next two years.

Lanka Cement Ltd and Sri Lanka Cement Corporation which are at present controlled by the government as major shareholders have completed preliminary arrangements to market their brands in the near future.

Sri Lanka Cement Corporation, one of the biggest manufacturing corporations which began, operations after the 1956 people's victory enjoyed the manufacture and sales monopoly of Sri Lanka made cement, which were produced at the Kankesanturai, Puttalam and Galle cement factories.

According to the chairman of Lanka Cement Ltd, M. H. M. Navavi, tender procedures were completed recently to import cement. He said Lanka Cement Ltd markets cement under the names "Diamond" and "Lanka Cement". Lanka Cement enjoys the SLS 107 prestigious quality certificate.

'Our main aim is to give the customer the maximum satisfaction in terms of quality', the chairman said. The Kankesanturai Cement factory, a pioneering industrial plant which began operations in Sri Lanka after independence, is today closed due to the prevailing situation in the North. The Kankesanturai Cement factory produced cement using Sri Lankan raw materials such as lime stone and was accepted as one of the best in Asia up to the time of closure.

Lanka Cement Ltd is not in a position to resume production at the Kankesanturai cement factory because it is in the high security zone in Aruwakadu. Therefore a grinding and packaging plant for cement will be set up, in the Colombo district, where there is a major market for cement. The prime raw material for cement lime stone is also available in Trincomalee and Puttalam and the Colombo district based cement plant has easy access to it.

The chairman said the attention of the government regarding its feasibility has been brought to the notice of the authorities concerned.

The Sri Lanka Cement Corporation is also finalising its regional sales network. Applications were called for cement distributors islandwide recently. The Sri Lanka Cement Corporation sells cement under the name of "Kankesan Cement". "Kankesan Cement" has a proud record of 50 years of service to the country.

Outlining the present trends of the cement market, the chairman of the Sri Lanka Cement Corporation Bandula Wellala said that the public sector has a responsibility towards the people.

Even recently cement prices were increased by the private sector and the price of a bag of 50 kg cement has risen to between Rs 525 - Rs 550, he said.

The intervention of the public sector to the market instead of giving the monopoly to the private sector is important to check this situation, he said. Quality cement at a reasonable price under the name of "Kankesen" will be in the market in the first week of June, he said.

A team of representatives from the government is due to visit the Kankesanturai cement complex where three cement factories were operative two decades ago.

The possibility to recommence operations of public sector cement factories is being explored.

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