Two state-of-the-art production facilities to be set up at Sri Lanka’s Mirijjawila Export Processing Zone
The Morning: The foundation for two state-of-the-art production facilities for steel and roofing sheets was laid at the Lanwa Sanstha industrial precinct in the Mirijjawila Export Processing Zone (EPZ), recently.
The foundation stone for the new steel facility was laid by Gotabaya Rajapaksa with Prime Minister Mahinda Rajapaksa and other ministerial delegates in attendance.
The steel factory is expected to save the local economy millions of dollars, which is the need of the hour. The total output of the facility, once commissioned, will be 600,000 metric tonnes (MT) of steel billet, rebars, and wire rods per annum. This volume is expected to make Sri Lanka self-sufficient in the foreseeable future.
The excess supply will be exported via the Hambantota International Port.
Most of the raw materials are to be sourced locally to empower local suppliers as well as to provide an affordable product to the market. Lanwa’s state-of-the-art infrastructure i.e., the 2.4-km conveyor belt from Hambantota port to the EPZ will be used to transport raw materials to and manufactured goods from the factory ensuring optimum sustainability and minimum wastage.
“The facility will generate over 1,500 jobs directly and about 3,000 jobs indirectly. This will take Sri Lankan ingenuity to the world as well as support the domestic industry by managing and mitigating shortages and unprecedented fluctuations that typically occur due to overdependence on imports. This venture is a win-win for everyone,” said Chairman of Ceylon Steel Corporation Ltd. Nandana Lokuwithana.
The group recently declared open a state-of-the-art cement manufacturing plant, Lanwa Sanstha Cement (Pvt.) Ltd., with an investment of over Rs. 25 billion. The total capacity of the facility is 2.8 million MT of cement per annum.
This project is seen as a timely endeavour to offer a respite for the local construction community impacted by the shortage of cement over the past two years due to import restrictions put in place to mitigate the LKR depreciation.
The foundation for the Lanwa roofing sheet facility was laid by Minister of Trade Dr. Bandula Gunawardena, Minister of Energy Pavithra Wanniarachchi, State Minister of Aviation and Export Zones Development D.V. Chanaka and State Minister of Co-operative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna.
This facility will utilise cement from the sister company, newly commissioned Lanwa Sanstha Cement Corporation (Pvt.) Ltd., as the key ingredient to manufacture up to 400,000 MT of asbestos and non-asbestos roofing sheets and other allied products per annum.
A highlight of this facility would be the “colour coating” unit which will incorporate cutting-edge technology making it the first and only of its kind in Sri Lanka and the region. The cumulative investment for recent Lanwa projects amounts to over $ 250 million.
Meanwhile, Minister of Irrigation and State Minister of National Security, Home Affairs, and Disaster Management Chamal Rajapaksa laid the foundation for staff quarters – “Haritha Medura” – for Lanwa employees as part of the aggressive expansion efforts.
Lanwa or Ceylon Steel Corporation Ltd. is the parent company of Lanwa Sanstha Cement Corporation (Pvt.) Ltd as well as the steel and roofing sheet manufacturing facilities.
OSL take:
Sri Lanka’s manufacturing and exports sectors have shown a growth momentum despite facing challenges posed by the global Covid 19 pandemic. The many trade agreements and concessions enjoyed by the country have further helped boost Sri Lanka’s manufacturing and exports sectors. The country’s ongoing development programme has also helped expand Sri Lanka’s key economic sectors. The expansion in Sri Lanka’s manufacturing and exports sectors has resulted in an increase in the country’s business potential. Apart from exploring the growing opportunities in Sri Lanka’s manufacturing and exports sectors, foreign businesses/investors could look at forming partnerships or joint ventures with local businesses to expand operations.
| Article Code : | VBS/AT/21032022/Z_2 |