Colombo, Jan 23: A Chinese cement manufacturer plans to enter Srilankan market by setting up a production plant in Hambantota, according to Srilanka's department of information on Tuesday.
The Srilankan Government has given approval to Chinese cement manufacturing to look for opportunities in the domestic market . The company will build up a production unit in Hambantota.
All the formalities related to the land allocation and environment assessments have been completed and the production work is expected to start in May 2020, the Government information department quoted Deputy Minister of Development Strategies and International Trade Nalin Bandara, reports Colombo gazette.
The Deputy Minister said "this is the first time a Chinese Cement manufacturer is entering the Sri Lankan market. He further said that land allocation for the project has been already approved and environment assessments have been completed. “The Chinese company will start production next May".
He said that " the Chinese cement manufacturer will source 40% of raw material locally and the value addition would increase gradually.
“Since most of the regional markets have large cement manufactures, this Chinese company would mainly concentrate on Sri Lankan markets, he added.
Bandara said that though Sri Lanka has many cement manufactures almost 55% are still been imported and there are lot of opportunities for the Chinese company to market cement locally.
Cement imports surged 56% to 633,000 metric tonnes in May 2018 according to available data.
In December 2017, Sri Lanka formally handed its southern port of Hambantota to China on a 99-year lease at 1.1 billion dollars. (UNI)