Understanding Sri Lankas cement industry from a customers

perspective
By Sandeep Holey: General Manager, Technical & QA, UltraTech Cement Lanka (Pvt) Ltd.

View(s):

Sri Lankas changing landscape and the towering skyscrapers slowly punctuating Colombos
cityscape probably generates a curiosity about the bludgeoning construction industry and by default,
associated segments like the cement industry. Cement by its very nature, is ubiquitous and whether
you are constructing a house or you have a passing curiosity about Sri Lankas infrastructure
development, equipping yourself with a basic knowledge is useful as beyond a rudimentary
understanding, very little is known of cements technical nuances most of the time.
For instance, although the terms cement and concrete are frequently used interchangeably, they
arent the same. Cement is a vital raw material used when making concrete and plays an important
role, not only as a binding ingredient, but also in maintaining durability and strength with least
maintenance. Simultaneously, while cement is the key ingredient, concretes quality depends equally
upon other ingredients like aggregates (granular materials such as sand and crushed stone), water,
construction chemicals and factors such as workmanship, proportioning and environment.
Cement industry
Sri Lanka is estimated to be consuming about 5.8 million tons of cement per annum (Source:
Economic and Social Statistics of Sri Lanka, Central Bank Annual Report 2013). Sri Lankas situation
is quite different from the global cement industry as world trade in cement (where cement moves from
one country to other) is hardly 4 per cent whereas Sri Lanka imports 66 per cent of its requirement
either in the form of cement or clinker. It is important to note that this figure could go up to 75 per cent,
considering clinker is being imported for grinding units.
Sri Lanka imports cement from various plants in neighbouring countries like India, Vietnam, Pakistan,
Malaysia, Indonesia and Thailand. This dependability of imports has its flip side, as it sometimes limits
the choice and type of cement and can diminish the assurance of consistent quality if there is no
proper quality mechanism in process.
This emphasis of consistency in quality is imperative as it is important to have cement sourced from a
single plant having cement from multiple sources may sometimes compromise the quality of the
overall construction. When importing cement, the mode of imports also makes a considerable
difference to the quality of the final product. For instance, directly importing bags of cement is an easy
but opportunistic trading option which lacks long term commitment. The lifespan of a bag of cement is
generally three months as generally declared on cement bags in Sri Lanka. Its strength level
declines over time and its handling involves an entirely manual operation (from receiving it at the ports
and loading it into the trucks)and could result in cement absorbing moisture and being exposed to
various elements while being prone to wastage and pollution.
On the other hand, importing cement in its bulk form and storing it within the country for packaging,
provides a local value addition and offers a long-term assurance of quality as it requires dedicated
resources like specialized vessels, bulk cement carriers, specially built huge storage silos, a
laboratory for quality assurance, state of the art packers and experienced technical manpower. Even
if cement or clinker comes from a single source, it is advisable for customers to insist on superior
quality and ensure that the supplier has a stringent quality assurance mechanism. A commitment
towards society and the environment and adhering to ethical business practices as well as
possessing the appropriate credentials is a must.
It is commendable that the Sri Lanka Standard Institute (SLSI) has a stringent system in place to
monitor this. The importing of cement has to comply with the Sri Lanka Standard of Cement and the
Conformity Assessment through Import Inspection Schemes. Cement companies have to declare the

sources of the cement while the import factories have to be registered with the SLSI, comply with
environmental regulations and adhere to strict quality checks. An important factor when ascertaining
the quality of imported cement is to assess its level of compressive strength at 28 days. If the cement
fails to reach the required level of compressive strength, it will be rejected and the higher the strength
at 28 days within specified limits, the better the cement is in the long run.
Achieving economy, strength and permanence
Concrete has good compressive strength but poor tensile strength (reinforcement i.e. iron rods are
used to overcome this drawback) and is extremely sensitive to its surrounding environment not only
during its making but throughout its entire lifespan. Increasingly needing maintenance and constant
repairs on structures are usually cautionary tales of the extreme importance of paying attention to the
variables that affect concrete. Lack of attention to these variables and cost-cutting measures to vault
over high building costs can only prove to be penny-wise, pound-foolish in the long run.
However, if used with proper technical know-how, good quality cement can help achieve economy in
construction without compromising on the quality of the construction. Cement with higher compressive
strength in the long term, will be required in less quantity to achieve high concrete strength, thus
reducing cement consumption. If the quality of cement is also taken into consideration from the design
stage, you can save on sizes of the compression members (eg: columns) and overall costs of
concrete.
Constructing a structure which remains in good condition for a longer time period, with the least
maintenance expenses is the ultimate attainment in construction. Deterioration is inevitable over time,
but if concrete is not designed, prepared, cured and maintained properly, deterioration can be
expedited. Moisture and other harmful substances such as sulphates, chlorides and carbon dioxide
entering and weakening the concrete or corroding the reinforcement leads to more maintenance
expenses and reduces the life of the structure.
Customers Dilemma
Often, a customers connection with construction activities is not a regular affair as the construction of
a house is taken up once in a life time or at the most, perhaps a few times for a minority. A paucity of
appropriate information and knowledge of the subject makes the customer dependent on multiple
opinion sources such as architects, engineers, peer home builders, contractors and masons. When
constructing, obtaining key materials from reputed and trustworthy sources would give the customer
an assurance of quality. Good cement companies do take a pro-active stand to disseminate correct
and appropriate technical information and good construction practices to customers as well as all
concerned in the field like engineers, masons and contractors.
Future
While the cement consumption of the country is expected to be on an upward growth trajectory, the
changing landscape of Sri Lankas construction industry by default requires a better understanding of
the countrys cement industry. The ongoing pattern of infrastructure development and vertical growth
of major cities like Colombo also indicates more mechanized construction in line with the experience
of developed countries. Another welcoming change being observed is the increasing demand for
blended cements like Portland Pozzolana Cement, which are environmental friendly products and
help in achieving better durability when undertaking coastal construction in Sri Lanka.
Colombos metamorphosing skyline around areas like Galle road or Beira Lake on one side mirror the
growing opportunities and optimism in the economy while on the other side demands superior quality
of construction and good construction practices in order to assure sustainable growth hence the
importance of sourcing cement from trusted companies of impeccable reputation and commitment.
The cement industry in Sri Lanka is already at a surplus in terms of the capacity installed at present
and meeting the growing demand of cement would not be a source of concern at this point of time.
Key concerns at this stage would be awareness of industry information, dissemination of technical

know-how among all stakeholders and an appreciation for consistent quality especially in the trade
segment. A deficit of technical manpower, the increasing dependence of individual house builders on
small contractors and masons further reinforce the fact that awareness about key construction
material like cement and overall good construction practices is essential.
Conclusion
Cement, both from the range of product and services, available in Sri Lanka is well equipped for
strengthening the foundation of a nation which is slowly taking strides towards infrastructure
development and it is up to the customers and construction industry to derive the most from its
potential. Having appropriate information about it, is surely the first step in the right direction to unlock
its potential for superior quality and economical construction.
(The author is a cement and construction industry professional from India with extensive cross
functional industrial experience of nearly 20 years in different capacities of Project and Process
Management, Quality Control and Assurance, Strategic Management and Techno-commercial
Operations)

Cement industry fighting for survival due to low

demand
From left: Ultra Tech General Manager Technical Sandeep Holey, Ultra Tech Cement CEO
Kiran Redker, Institution of Engineers Sri Lanka Civil Engineering Sectional Committee
Chairperson Prabodha Jinasena and Institution of Engineers Sri Lanka Committee
Member Niyas Samad Pic by Lasantha Kumara By Charumini de Silva The cement
industry is fighting for survival with paucity in new commercial construction activity leading to low
demand, a top importer warned last week. The industry is not as bullish as it was once. We are
living with hope that the new Government will come up with a drastic policy direction for the
construction and cement industry which would bring momentum back to the industry, otherwise it
will be very difficult to survive, UltraTech Cement Lanka Ltd. Chief Executive Kiran Redkar said.
Redkar was speaking at a discussion on Revitalising a growing construction industry in Sri
Lanka and promoting consumer education, organised by UltraTech Cement and the Institution of
Engineers Sri Lanka (IESL). He said during the post-war period as expected Sri Lanka went on a
growth trajectory of 7%-8% of GDP, while the construction industry grew at about 18%-20%.
The trend continued for a few years and this construction boom was mainly generated from
development of infrastructure and also in part by real estate, Redkar added. As per our
observations as a cement seller, we do not see good growth in the construction industry. It is yet
to pick up. We hope it will and that the industry can expect 15% to 20% growth, General
Manager Technical and Quality Assurance Sandeep Holey added. CEO Redkar also said that
although there had been a drastic drop in the interest rates, credit growth compared to the drop
was of no consequence. This is a very surprising scenario. Interest rates for housing loans had
dropped from 20% to 9%, which is about a 40% to 50% reduction, but surprisingly people are still
not borrowing money to build houses, Redkar pointed out. Explaining further, he said that they
did not think there would be much of a change in interest rates or inflation rates even after the
upcoming general election. I think we have reached the lowest levels of interest rates at present,
where savings rates are at 3%-4% and fixed deposit rates at 6%-7%, while lending rates are
around 8%-0%. Nevertheless, considering the relatively low per capita cement use in Sri Lanka,
Redkar said that there was tremendous scope for construction activities in the future. At present,
Sri Lankas per capita cement use is 200 kilos per person. Holey also said that due to the nonavailability of masons, contractors and labour, there is a tendency of utilising modern
construction practices such as ready mix concrete.

Tokyo Cement adds fifth cement vessel to transportation fleet

18 August 2015
Sri Lanka: Tokyo Cement has added a fifth vessel, MV Mohar, to its fleet of cement transport ships in
August 2015. The ship is a 22,000t pneumatic bulk cement carrier.
"Logistics is an integral part of our business and the increase in local demand has required us to enhance
our capacities not just in transportation, but manufacturing and energy generation. We are always striving
to improve our business performance because doing so is Tokyo Cement's contribution to building Sri
Lanka and ensuring strong, sustainable development," said Tokyo Cement Group Managing Director S R
Gnanam.
With a 1Mt/yr production capacity increase in Trincomalee, the new vessel will transport cement to the
Colombo Port in order to distribute more efficiently. "The cement industry is often described as a barometer
of a country's march to economic development and prosperity. What we are currently seeing is a surge in
demand for products and services, which is a good indicator of market confidence. Over the last three
decades, Tokyo Cement has built itself up to become one of Sri Lanka's most valuable brands, with an
installed capacity of over 2Mt/yr of cement, over 600 employees and US$149m in assets. Our success
reflects the continuing growth of Sri Lanka and its economy," said Gnanam.
Published in Global Cement News
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Tokyo Super Portland Pozzolana Cement accredited with a Green Mark

09 July 2015
Singapore/Sri Lanka: The Ceylon Institute of Builders has awarded Tokyo Super Portland Pozzolana
Cement (PPC) with a 'Green Mark.'
The Green Mark is a Singaporean product label, accredited internationally by the Building Construction
Authority (Singapore), the Green Building Council (Singapore), the Chartered Institute of Builders (UK), as
well as locally by the Ceylon Institute of Builders, the Ministry of Environment, the Ministry of Construction
and the Central Environmental Authority. Tokyo Super PPC is the only cement brand with a sustainable
accreditation and is frequently recommended by sustainable building consultants as, 'The highest quality
product, with minimal environmental impact, on the market.'
Tokyo Super PPC was given the green accreditation for the following reasons:
- Its local manufacturing is powered by carbon-neutral biomass energy that is locally-generated with the
repurposing of agricultural waste;
- It is a renewable energy project in compliance with United Nations Framework Convention on Climate
Change (UNFCCC) standards and is awarded carbon credits annually;
- It uses coal fly ash from Norochcholai power plant, recycling locally-generated waste in a useful manner;
- It minimises the energy required in cement grinding by using fly ash;
- It minimises CO2 emissions by substituting clinker with non-limestone based material, thereby reducing
the energy requirement for kilning;
- It has International Certification in Environmental Management Systems (ISO 14001) and Quality
Management Systems (ISO 9000) and was the model from which local standards were set (SLS 1427);
Tokyo Super PPC, although less expensive than Ordinary Portland Cement, is not just the greener choice
but also the stronger one. It offers as much as 10% higher strength after 98 days.

Published in Global Cement News

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Lafarge Mahaweli celebrates safety month

07 July 2015
Sri Lanka: According to the Daily News (Sri Lanka), Lafarge Mahaweli Cement has concluded its health
and safety month 2015, with a number of activities held at its plant premises in Colombo Port.
The theme of 2015's safety month, which was in line with Lafarge's global best practices on secure
operations, was 'Keep Learning - Committed, Open, Uncompromising,' with special emphasis on zero
accidents and a firm commitment towards engaging and caring for one another.
Like all key stakeholders of Lafarge Mahaweli, employees and their children were also given the
opportunity to actively participate in the health and safety month by being part of the 'Good Practices and
Safety at Home' internal competition, where their ideas on health and safety within the home were
accepted and judged according to competition guidelines. The best ideas and concepts received special
awards.
Published in Global Cement News
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Dalmia Cement Bharat Limited expands its footprint in Sri Lanka

16 June 2015
Sri Lanka: Dalmia Cement (Bharat) Limited is increasing its exports to Sri Lanka through its channel
partner M/s Smart Dragon Lanka Pvt Limited. With a total capacity of 20Mt/yr, Dalmia Cement has cement
plants in southern and eastern India, making it a prominent manufacturer of cement in India.
Dalmia Cement currently supplies cement to the Sri Lankan market from its 3.5Mt/yr plant in Dalmiapuram,
Trichy, Tamil Nadu. The plant has 21 silos, making it convenient to store many varieties of cement. It can
also supply Sri Lanka from its 2.5Mt/yr plant in Kadappa, Andhra Pradesh. The plants use the ports of
Tuticorin and Chennai in Tamil Nadu and the port of Krishnapatnam in Andhra Pradesh.
"Dalmia Cement has been exporting cement to Sri Lanka since 2009. We wish to strengthen our bond and
relationship with Sri Lanka by providing superior-quality cement, with a vision of becoming one of the
leading exporters of cement to the country within the next three years," said R Sanjay, assistant executive
director of institutional sales at Dalmia Cement.
Published in Global Cement News
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Lafarge Mahaweli Cement goes full steam ahead with Savi Piyasa housing
programme
13 May 2015
Sri Lanka: Lafarge Mahaweli Cement is on schedule with its Savi Piyasa housing programme and has now
partnered with nine leading brands in the construction sector and two commercial banks to add value to its
technical assistance scheme for individual homebuilders.
Under its 'Building Better Cities' theme, Lafarge has helped many families around the world to have better,
affordable housing facilities and hopes to provide decent housing to two million people worldwide by 2020.

In Sri Lanka, Lafarge has already provided architectural assistance to 220 families in the Western and
Northern Province. With the intention of providing even better options for its Savi Piyasa clients, Lafarge
has now entered into partnerships with several leading brands, enabling it to receive special discounts on a
large variety of building materials such as steel, paints, glass, PVC pipes, etc. Moreover, Lafarge has tied
up with commercial banks and microfinance institutions to provide their customers with easy access to loan
facilities.
"We started this programme a year ago and we have been getting a lot of positive feedback. A package
integrating architectural assistance, special discounts and financial facility has not been offered in Sri
Lanka before, so I am confident that the individual homebuilders in the country will find interest in this
turnkey solution," said Lafarge Mahaweli Cement managing director Anurag Kak.
Published in Global Cement News
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Holcim Lanka launches Ready Flow Plus cement

30 April 2015
Sri Lanka: Holcim Lanka has launched Ready Flow Plus, a blended ordinary Portland cement product. The
cement producer says it offers high performance with strength, consistency and workability.
"In developing Ready Flow Plus, Holcim (Lanka) has gone one step further in shifting, from ordinary
Portland cement that requires inputs such as clinker, to blended cement which scores high on sustainability
and leaves a smaller environmental foot print," said Sanka Senaviratne, manager of industrial sales at
Holcim (Lanka). The product is being targeted for the construction of high-rise buildings. Ready Flow Plus
cement is already sold in other Asian countries.
Published in Global Cement News
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Tokyo Cement plans expansion project

20 March 2015
Sri Lanka: Tokyo Cement Company (Lanka) plans to invest US$50m on 1Mt/yr of additional production
capacity to meet local demand.
The extra capacity will be via a new plant under a new subsidiary, Tokyo Eastern Cement. The project is
expected to be implemented in the next two years. It will receive a five-year tax holiday and a tax rate of
12%. The project will be funded through internal funds and loans.
In its 2014 financial year, Tokyo Cement's revenue grew by 6% year-on-year, while its operating profit rose
by 65%. Its current market share in Sri Lanka is 35%.
Published in Global Cement News
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Tokyo Cement Lanka and Fuji Cement Lanka merged to form Tokyo Cement
Company (Lanka)
17 March 2015
Sri Lanka/Japan: Japanese cement producers in Sri Lanka Tokyo Cement Lanka and Fuji Cement Lanka
Limited have announced that they have merged under the terms of Section 242 (1) of the Companies Act

No 7 of 2007. The merger to create Tokyo Cement Company (Lanka) plc was completed on 13 March
2015.
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Tokyo Cement to merge with Fuji Cement

04 December 2014
Sri Lanka: Fuji Cement, one of the subsidiaries of Tokyo Cement, which functions as independent
company, will go for a strategic merger as a single entity with effect from February 2015. Harsha Cabraal
has become the new chairman of the company.
After the merger, the new entity will be named Tokyo Cement Company Lanka Plc. For the merger the
companies will cancel the status capital and asset and liability of Fuji Cement and are now waiting for the
Company Registrar's approval to go ahead with the merger.
Tokyo Cement (Lanka) plc is a Sri Lanka-based company engaged in the manufacturing and selling of
cement and ready mixed concrete to the local market. Its product lines include Nippon Ordinary Portland
Cement (OPC), Tokyo Super Ordinary Portland Cement, Tokyo Super Portland Pozzolana Cement and
Tokyo Super Masonry Cement.
As of 31 March 2012, Tokyo Cement had four subsidiaries, namely Tokyo Super Cement Company Lanka
(Pvt) Limited, Fuji Cement Company (Lanka) Limited, which were both engaged in manufacturing and
selling cement; Tokyo Cement Power (Lanka) Limited, which was still in gestation stage and Tokyo Cement
Colombo Terminal (Pvt) Limited, which was active in the import and distribution of cement.
Published in Global Cement News
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Fernando appointed as executive director on Tokyo Cement board

12 November 2014
Sri Lanka: W Christopher Fernando has been appointed as an executive director to the board of Tokyo
Cement Company (Lanka) with effect from 30 October 2014.
Fernando was appointed as Group General Manager of the company in 1991. He is also a director of Fuji
Cement Company (Lanka), Tokyo Super Cement Company (Lanka), Tokyo Cement Colombo Terminal,
Tokyo Cement Power (Lanka) and Tokyo Eastern Cement Company. He holds degrees in economics, is a
Fellow Member of the Institute of Chartered Management Accountants (FCMA), Fellow Member of the
Institute of Chartered Accountants (FCA) and an attorney-at-law.

Maha Cement plans Sri Lanka market entry

22 July 2014
India: Maha Cement has announced that it plans to enter the Sri Lanka cement market with its joint
venture company, My Home Industries Limited (MHIL), which is part-owned by Ireland's CRH. MHIL has
8.40Mt/yr of cement production capacity and plans to increase its capacity to 10Mt/yr by 2015. It plans to
set up a cement plant in the east coast of Tamil Nadu, India, for import to nearby Sri Lanka.

Published in Global Cement News

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Holcim to invest US$22m on cement grinding capacity in Sri Lanka

18 June 2014
Sri Lanka: Holcim Lanka is spending US$22m towards upgrading its cement grinding plant in Ruhunu,
Galle. The investment will increase the plant's cement grinding capacity from 0.6Mt/yr to 1Mt/yr. The
upgrade will also increase capacity on a Geocycle waste shredding line, building up the clinker warehouse
and process efficiency improvement to a sludge drying facility.
"We also intend to make considerable improvements to our distribution by enhancing our logistics," said
Holcim Group CEO Bernard Fontana during his first visit to Sri Lanka. Holcim will be concentrating on
increasing their production from both their facilities in Puttalam and Ruhunu in the future.
"In our 18 years of existence in Sri Lanka, we have tripled our cement manufacturing capacity to reach
2.3Mt/yr," said Philippe Richart, CEO, Holcim Lanka. Holcim Lanka sold approximately 1.5Mt of cement in
2013 and generated annual revenues of US$154m in 2013.
Published in Global Cement News
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Striking Holcim workers in Sri Lanka occupy cement plants

05 June 2014
Sri Lanka: Nearly 500 contract workers at two Holcim Lanka cement plants in the towns of Puttalam and
Galle in Sri Lanka have been on strike since 19 May 2014 demanding job permanency, better wages and
improved working conditions. The striking workers and their families are occupying the cement plant
premises. The Inter Company Employees Union (ICEU) called the strike.
The protesters at the Puttalam plant have blocked the main gate, halting the transport of cement. The
company and contractors are trying to break the picket with the help of Sri Lanka's president Mahinda
Rajapaksa. The government is determined to end the strike and has deployed police and the riot squad.
The police are threatening to arrest union leaders and activists.
On 1 June 2014 the striking contract workers and their families at the Puttalam and Galle plants were
attacked by hired thugs with swords and clubs, allegedly organised by the local ruling party politicians. At
the Puttalam plant nine people, including an eight year old girl, were injured and sent to hospital. Four are
still hospitalised. Protestors asked for police protection, who were present during the attack, but their
appeals were allegedly refused. At the Galle plant one protester was injured.
The mother of the eight year old girl who was injured said that her daughter had been thrown to the ground
by the thugs. "I'm afraid for my husband, who has been working for eight years as a contract worker. That's
why we joined the protest."
Holcim established its Sri Lankan operations after the privatisation of the state-owned Puttalam Cement
Corporation in 1996 under former president Chandrika Kumaratunga. After Holcim took over, the workforce
was cut from 1500 to less than 900, with only 370 permanent workers. Some of the contract workers have
worked for the company for more than 20 years. Keeping workers on contract basis is a means employed
to deny the rights they would have as permanent employees and to subject them to harsher working
conditions.

Workers in the production and transport sections are employed on a 12 hour shift system. Their basic
monthly wage is less than US$115. In the loading section, six workers have to load 4500 cement bags
during a 12 hour shift with the assistance of a conveyor belt. The workers on 'general duties' work nine
hour shifts and are on daily wages of US$16.02.
Holcim Lanka dominates has more than 40% of the local market. In the recent period, it has increased the
price of a 50kg bag of cement several times and profits have soared, even after paying the government's
increased taxes.
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Thatta Cement suspends Sri Lanka cement grinding and bagging plant
30 April 2014
Sri Lanka: Work on a Thatta Cement project in Sri Lanka has ended because the Sri Lanka Ports Authority
(SLPA) has not yet executed the Land Lease Agreement (LLA). Basic engineering for the cement grinding,
storing and bagging plant has been completed but the project has been suspended pending legal issues.
Thatta Cement secretary Taha Hamdani has complained to capital market regulators about the SLPA also
signing an agreement with another company whose operational area lies close to its cement project. It
appears to obstruct setting up of the cement project within the layout originally planned by the SLPA. The
company officials say further progress on the project would recommence 'as soon as LLA is signed with
SLPA'.
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Thatta Cement suspends project in Sri Lanka

18 March 2014
Sri Lanka: Work on Thatta Cement's cement grinding, storing and bagging plant in Sri Lanka has come to
a screeching halt.
The company informed investors on 14 March 2014 that the project was 'temporarily suspended' as the Sri
Lanka Ports Authority (SLPA) had not executed the Land Lease Agreement (LLA), despite the fact that
basic engineering of the project had been completed by Thatta Cement Company (Pvt) Ltd, a subsidiary of
Thatta Cement Company.
The CFO and company secretary of Thatta Cement, Muhammad Taha Hamdani, complained that the
SLPA had also signed an agreement with another business venture of car trans-shipment in close vicinity
to the proposed cement project, "Without anticipating the expected operational conflict, which now appears
to hinder setting up the proposed cement project within the layout originally planned by the SLPA."
The company official stated that further progress on the project would recommence as soon as the LLA is
signed with the SLPA.
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Holcim Lanka launches new village

29 January 2014

Sri Lanka: Holcim Lanka has launched its fourth 'Holcim Village' in Akmeemana, Galle, in the south of the
island nation. Holcim said that by laying the foundation for this new Holcim Village, it demonstrates its
commitment towards its 'triple bottom line' of economic return, social responsibility and environmental
protection. The village at Akmeemana follows three previous projects carried out in Medirigiriya,
Eluwankulama and Puttalam.
The Holcim Village in Galle specifically addresses the needs of the community surrounding Ruhunu cement
works. The US$900,000 project will house 13 homeless families in fully fledged housing units with
electricity, water and access roads, upon completion.
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Holcim Lanka appoints new chairman and director

15 January 2014
Sri Lanka: Holcim Lanka has appointed Nirmala GihanWickremeratne as chairman and Premila Perera as
director.
Wickremeratne has a long and distinguished career at one of Sri Lanka's most respected conglomerates,
the Hayleys Group, where he served as managing director / CEO of Dipped Products Group and later as
chairman and chief executive of the Hayleys Group. He is credited with the establishment of Dipped
Products plc and its evolution into a world leader in its field. Wickremeratne was the founder chairman of
the Sri Lanka Association of Manufacturers and Exporters of Rubber Products (SLAMERP) and has been a
committee member of the Ceylon Chamber of Commerce, the Chamber's representative on the National
Labour Advisory Council and president of the Sri Lanka-France Business Council. Following his retirement,
he served as an independent non- executive director of a premier private sector bank.
Premila Perera, formerly partner and head of tax at KPMG in Sri Lanka, is a fellow of the institute of
Chartered Accountants of Sri Lanka. She has served as regional tax director of KPMG Asia Pacific in
Singapore, a member of KPMG International's 'Firm of the Future' Task Force and on the faculty of the Tax
Business School of KPMG International.
Published in People
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Sri Lanka's Tokyo Cement sees 660% increase in profit

22 August 2013
Sri Lanka: Tokyo Cement's profit rose by 660% to US$4.6m in the quarter ending 30 June 2013 compared
to the same period of 2012. The company said that this was due to lower raw material costs.
Tokyo Cement said that its revenue rose by 4% to US$50.8m and that direct costs fell by 5% to US$47.1m.
This allowed its gross profit to increase by 87% to US$9.5m. Unspecified other income also rose by 87% to
US$1.2m.
Tokyo Cement, which imports clinker for grinding, was hit badly in 2012 as its raw material costs rose and
the government, which controls cement prices on the island, delayed a price increase. Now, with higher
sales prices and an easing of international commodity and energy prices, clinker prices have fallen. The Sri
Lankan Rupee was also more stable in the June 2013 quarter than in the 2012 quarter.
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Sri Lankan plant to be restarted

29 July 2013
Sri Lanka: The State Resources and Enterprise Development Ministry of Sri Lanka will re-establish a
currently closed cement plant in Kankesanthurai, Northern Province, in the extreme north of the country.
The plant will be restarted by Sri Lanka Cement. The ministry estimates that, with an investment of
US$11.4m, the plant can become operational again within 12 months.
Project proposals to re-establish the factory were presented to State Resources and Enterprise
Development Minister Dayasritha Tissera by Sri Lanka Cement Corporation Chairman N S M Samsudeen
on 26 July 2013.
According to the project proposal, funds will be sought from the Bank of Ceylon and a copy of the project
proposal was also presented to the Bank of Ceylon by Samsudeen. The project aims to produce a
minimum of 12,000 x 50kg cement bags per day, which is 600t/day, or 0.2Mt/yr.
Sri Lanka Cement said that it could cover the project cost if it is selected as the main cement supplier for
the Northern Highway project initiated by the government. "The project can save US$13m/yr in foreign
exchange spent to import cement to the country and it will also generate 300 direct employment and 400
indirect employment opportunities for people in Kankesanthurai," said Samsudeen. Sri Lanka is in the
process of building a series of new highways and toll-roads.
The announcement regarding Sri Lankan Cement comes shortly after a series of announcements regarding
capacity expansion in Sri Lanka despite a decrease in demand for cement in the first half of 2013. Tokyo
Cement plans a 1M/yr plant and Pakistan's D. G. Khan Cement and Thatta Cement have both announced
plans for grinding capacity on the island.
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Sri Lanka destination or stopover?

24 July 2013
Sri Lankan cement demand fell in the first half of 2013. Yet this doesn't seem to be stopping the cement
industry's slow recovery following the civil war that ended in 2009.
As reported by Sri Lankan media around the launch of Holcim Lanka's 2012 Sustainability Report, the local
cement industry has seen volumes fall by 7% but this is expected to improve in the second half. Tokyo
Cement, a grinding plant operator, confirmed a similar drop in the first quarter of 2013.
Despite the talk of downturn so far in 2013, Tokyo Cement has announced plans for a 1Mt/yr cement plant
costing US$50m complete with its own captive biomass power plant. In addition, plans have emerged of a
joint venture involving Pakistan's D.G. Khan Cement to build a grinding plant at Hambantota in the south of
the island. Costing US$15m, the plant is intended to process exports to South Africa and Kenya.
The explicit intention to produce clinker in Pakistan and then grind it in Sri Lanka before export to a third
destination makes an interesting notion. The Pakistan cement producer may benefit from being able to
export cement from Sri Lanka with the added security of knowing that the grinding plant is located in a
growing market itself. A helpful strategy given Pakistan's cement production overcapacity.

The Hambantota project is also noteworthy because another Pakistan-based company, Thatta Cement,
announced in April 2013 that it had signed an agreement with the Sri Lanka Ports Authority to a build a
grinding and bagging plant at Hambantota. Also in 2013 the Nepali entrepreneur Binod Chaudhary
submitted a US$75m plan for a cement plant in the north of the island.
Of course all of this appears miniscule in comparison to the level of investment Semen Indonesia has
chalked up to spend between now and 2016: up to a whopping US$2bn.
Elsewhere in the news this week the price of extending a US Environmental Protection Agency (EPA)
deadline has revealed itself to be US$1.5m. Lafarge North America has succeeded in pushing back
pollution controls at its Ravena plant by over a year in exchange for interim limits and an investment in air
pollution projects in the local community. It's not a fine but the announcement follows other pollution-related
payments at cement plants run by Holcim and Ash Grove. Let's hope that any new plants in Sri Lanka
avoid these kind of payments.

Tokyo Cement plans US$50m plant in Sri Lanka

24 July 2013
Sri Lanka: The Tokyo Cement Company intends to build a US$50m cement in Trincomalee, Eastern
Province a top official has said. The new 1Mt/yr plant will be called the Tokyo Eastern Cement Company.
The build will also include a captive 10MW biomass power plant.
"We are currently in the process of finalising a 33-year lease agreement with the government for the land to
construct the factory," said Tokyo Cement Managing Director (MD), S R Gnanam. Tokyo Cement has
received tax breaks on the investment that will be financed by internal funds and bank loans. The company
anticipates a 10% year-on-year growth in cement demand in the medium term.
Published in Global Cement News
Read more...

Sri Lankan market could rebound in 2013

22 July 2013
Sri Lanka: Sri Lanka's cement demand will pick up in the second half 2013, ending a slump that began in
2012, according to Philippe Richart, the head of Holcim (Lanka) Ltd. However, he added that cement
volumes were 7 - 9% down year-on-year in the first half of 2013. In 2012 the firm posted revenues of
US$152.9m.
"We expect the second half to be better, whereas 2012 saw a little bit of a decline," said Richart. "Overall
we think the market this year will be probably down by 2%."
Tokyo Cement, another Sri Lankan firm which operates grinding plants had also said demand has fallen by
7% in the first quarter but that an improvement was expected.
Official data shows that Sri Lanka's domestic cement production was down by 3.4% year-on-year to
320,000t in the first two months of 2013. Imports were down by 34% to 593,000t. However, production
picked up in March 2013 and first quarter production was up by 0.7% year-on-year. Imports for the first
quarter also surged by 118% to 854,000t.
Published in Global Cement News
Read more...

Chaudhary submits US$75m cement plant proposal to Sri Lanka

22 May 2013
Sri Lanka: Nepali entrepreneur Binod Chaudhary has submitted a US$75m proposal to the Sri Lanka
government to build a cement plant on the Jaffna Peninsula in northern Sri Lanka. According to Daily
News, a Sri Lankan online news portal, Chaudhary has invested an estimated US$200m in several projects
in Sri Lanka. He has been investing substantially in Sri Lanka ever since he acquired a substantial stake in
the Taj Lanka Hotels of the island nation in 2000.
Published in Global Cement News
Read more...

Thatta Cement signs lease for Sri Lankan grinder

10 April 2013
Sri Lanka: Pakistan's Thatta Cement is proceeding towards the construction of a US$15m grinding plant in
Sri Lanka after signing a 25-year lease agreement with the island's port agency in the week ending 5 April
2013.
The plant, with a capacity of 0.3Mt/yr, will be located at the Hambantota port in the southern Sri Lankan
region of Hambantota District. It is expected to grind 0.1Mt of cement in the first year, catering to the
domestic market. It will gradually increase its output to 0.3Mt/yr. A second stage expansion is expected to
take capacity up to 1Mt/yr.
"The team at Sri Lanka Ports Authority (SLPA) were all supportive," said Thatta's chief financial officer,
Muhamad Taha Hamdani. "At the last meeting with SLPA chairman, he was very supportive. There was a
certain issue (but this) was solved within 15 to 20 minutes."
Thatta Cement chief executive Fazlullah Shariff said the firm had been exporting more than 0.1Mt/yr of
cement to Sri Lanka since 2011 and that the firm had acceptance among constructors in the country. He
said the grinding plant would not be limited to clinker from Pakistan but would also accept clinker from other
countries depending on the international movement of prices.
Published in Global Cement News
Read more...

Philippe Richart becomes CEO of Holcim Lanka

03 April 2013
Sri Lanka: Philippe Richart, formally responsible for the Ready Mix Concrete business in Holcim Vietnam,
has been appointed CEO of Holcim Lanka.
The change of CEO, which was announced in February 2013, was part of a generational change in the
company's leadership. Philippe joined Holcim Group Support in 2004 as a Commercial Project Manager for
the Aggregates and Constructions Materials function, working on aggregates market development and
performance improvement in various regions of the Group.
In 2007 he was appointed RMX director for Holcim Vietnam and successfully brought the division into the
leading position in South Vietnam.

Before joining Holcim, Philippe held various roles in construction project management and business
development for Lafarge Cement and Metso Minerals in Taiwan, USA, China and France. He holds a
Master's Degree in Civil Engineering from Ecole des Hautes Etudes Industrielles (Lille, France) and an
MBA from George Washington University (DC, USA).
Published in People
Read more...

Demand rises in Sri Lanka

04 July 2012
Sri Lanka: Sri Lanka's post-war reconstruction and floods have helped boost demand for cement in the
country, according to Tokyo Cement. The Sri Lankan and Japanese joint venture said that much of the
demand has come from the government's large scale infrastructure projects.
Total cement consumed in Sri Lanka during 2011 rose by 21.6% year-on-year to 4.58Mt. Local cement
production in 2011 rose by 13.6% to 1.97Mt.
According to Tokyo Cement, the private sector has been mainly engaged in building housing and housing
schemes as well as hotels. In its 2011-2012 annual report, Tokyo also pointed out that a surge in private
credit had contributed towards higher demand for cement.

SL importing 75 per cent of cement needs annually

March 2, 2015, 5:50 pm

By Ifham Nizam
Sri Lanka imports a staggering 75 per cent of its estimated consumption of some 5.8 million tons
of cement per annum and the worldwide import ratio is hardly four per cent, a top industry expert
said, adding that they were keen on facilitating cement use here in a self sufficient way.
Speaking at a discussion in Colombo titled Revitalising a growing construction industry in Sri
Lanka and promoting consumer education, organised by UltraTech Cement and the Institution of
Engineers Sri Lanka (IESL), UltraTech Cement Lanka General Manager Technical and Quality
Assurance- Sandeep Holey said that giving the product was not sufficient but that they make sure
to explain to consumers to go for the best product containing a very good chemical composition.

Sri Lanka imports cement from various plants in neighbouring countries like India, Vietnam,
Pakistan, Malaysia, Indonesia and Thailand.
UltraTech Cement Lanka will once again join hands with the Institution of Engineers of Sri Lanka
(IESL) to conduct Building Camps in the Galle district, staring March 8.
The Building Clinic is a public service initiative of the IESL which is being taken directly to the
public countrywide, by UltraTech Cement Lanka.
IESLs Civil Engineering Sectional Committee chairman Eng. Prabodha Jinasena said that the
Building Clinic is aimed at promoting consumer education and empowerment and giving
personalized construction advice to those unable to access expert information. The Building Clinic
is similar to a medical one.
He said individual home builders, contractors, masons and any interested persons attending the
clinic are welcomed by facilitating engineers who will direct them to the relevant expert
workstation, based on the nature of their query or clarification.
The senior engineer also said that the panel of professionals on call at the Building Clinic will offer
advice on an entire range of construction related areas, such as, land selection, geo- technical
issues, building services, structural designs, electrical, plumbing and sewage related issues.
A Building Clinic was held in Maharagama earlier this year.
According to Holey, Sri Lankas construction landscape has seen an upward trend over the past
few years due to urbanisation, economic development and increased consumer spending across
the construction industry.
Building construction, highways, bridges, water supply and drainage, irrigation, dredging and
reclamation are some of the predominant aspects of the industry which have contributed to this
boom and are slowly changing the face of Sri Lankas landscape.
He believes in the backdrop of this entire large-scale infrastructure, it is notable that individual
home-building is also on the rise. While large-scale construction is overseen by relevant technical
expertise and guided appropriately, this technical know-how and best construction practices
should also be made accessible to sections of home-builders who are unable to afford this
expertise to truly revitalize the construction industry.
Jinasena added that the majority of home-builders prefer to build their houses on their own
going as far as directly buying all raw material and designing and building with the help of hired
labour, lacking in technical expertise. In the past, houses were constructed solely by masons
(baases), whose knowledge was acquired not through technical training but through work
experience. This building trend is one that persists even today.
"We are living with the hope that the new government will come up with a drastic policy direction
for the construction and cement industry which would bring momentum back to the industry,
otherwise it will be very difficult to survive, UltraTech Cement Lanka Ltd. Chief Executive Kiran
Redkar said.

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