Sri Lanka Tokyo Cement mulls more ready mix concrete plants

Byyyp

Updated Fri, 26 Aug 2011 00:00:00 GMT

The company, a joint venture between Nippon Coke & Engineering Company (formerly Mitsui Mining Co.), the largest coal-mining company in Japan, and the local St. Anthony's Consolidated, is also considering power generation as a separate business.

The firm has completed a ready mix concrete plant in northern Jaffna, which is recovering from the effects of the island's 30-year ethnic war which ended in 2009.

"The plant, which increased our total number of plants to seven, is already in operation and generating income to buoy our bottom line," the company told shareholders in its annual report for 2010-11.

"We are also in the process of seeking similar strategic locations to replicate the facility, as this will not only help us meet the increasing demand we envisage in future years, but also generate employment in those areas where the plants are located."

Tokyo Cement said it is looking forward to supplying cement to the numerous road, port and airport development projects that are underway and other projects anticipated as the economy recovers after the war.

The company also said it was looking at expanding its power generation capacity with the aim of making it a separate business.

"A most immediate strategy being pursued by the company is in using the advantage we currently possess as a technology leader in biomass power generation," the report said.

"We are now exploring the further possibility of expanding our power generation capabilities using dendro power. We are critically evaluating the possibility of creating a separate line of business in power generation to add value to the activities of the group."

The company has set up a fully-owned power generating subsidiary and recently signed a deal with the state power utility to sell power to the national grid from a planned new dendro power plant.