New plant to produce 500 MPa and above rods :

Steel Corp to launch $ 80 m steel village

by Lalin FERNANDOPULLE

Construction material manufacturers are expediting operations to capitalise on the construction boom in the country following mega projects being rolled out by multinational companies.

Steel rod manufacturers are among the beneficiaries of the expansion in the construction industry which is a major contributor to the economic growth of the country.

Ceylon Steel Corporation (CSCL) will launch the $ 28 m state-of-the-art Quenching Tempered Bar (QTB) plant in Athurugiriya this year.

CSCL Director, Dammika Lokuwithana said that the company will manufacture 500 and above MPa (Mega Pascal) yield strength bars at its mill which will be commissioned next month. The company will manufacture around 100,000 MT of steel rods per annum and then increase its capacity upto 250,000 MT per annum.

“There is a huge demand for authentic steel bars in the country and we are confident that we could meet the demand with solid stuff produced at our modern plant”, Lokuwithana said.

According to construction industry standards, the minimum strength of a rod should be 460 MPa but with the expansion in high-rise buildings the minimum strength has been increased to 500 MPa according to global standards.

Construction industry experts said that the 460 MPa strength of a bar is not sufficient for multi-storey constructions which require more strength for durability.

Industry experts said that sub standard steel bars were proliferating the market, causing a colossal damage to the construction industry.

“The loss to the construction sector could be enormous due to the use of inferior material. Spot fines should be imposed on those who try to fleece consumers”, Construction Chamber sources said.

Many constructions have been a failure in the recent past due to the use of substandard building material.

An underpass on the Southern Express Highway collapsed due to the use of inferior construction material according to media reports.

The construction industry was adversely affected by the intrusion of low quality cement imported to the country. The scarcity of cement was a major blow to the industry.

Certain steel rod manufacturers have sought political refuge to continue with their business despite repeated warnings and fines to stop substandard production.

CSCL produces 460 MPa strength bars using the Cold Twisted Bar (CTB) technology which will be upgraded to meet world standards.

The new plant will help save energy and would cause minimum damage to the environment”, Lokuwithana said.

CSCL has already launched a massive $ 80 m project to set up a modern steel village on the 160-acre land to fulfil the steel product needs of the country.

The Ceylon Steel Corporation was set up in 1961. The company was sold to the Doosan Group, a South Korean company which renamed it as Ceylon Heavy Industries and Construction Co. (CHICO).

The debt riddled business under the Koreans was turned into a profitable venture under the stewardship of Nandana Lokuwithana, a Sri Lankan businessman with steel and construction related interests in the UAE.

He is the chairman of Onyx Group, a large construction company in the UAE. CSCL is today the largest steel manufacturers in the country with a wide distribution network. CSCL, Business Development Manager Sanath Niroshan said the company will venture into the export market next year.