ECONOMYNEXT – Sri Lanka’s LanwaSanstha Cement Corporation (Pvt) Ltd, had inked a deal with China-run Hambantota International Port Group (Pvt) Ltd, to set up two ship unloaders and a covered conveyor belt at the Southern port, the two companies said.
HIPG had licensed LanwaSansthaCement to operate two ship unloaders owned by Lanwa in the jetty area allocated to it at the Hambantota Port.
The 2.4 kilometres covered conveyor belt will be taking raw material from port to a grinding plant in the nearby Mirijjawila industrial zone.
“Lanwa cement is an important industrial project for the Hambantota district and plays an important role in the economic development of Sri Lanka as well as the development of Hambantota Port,” Johnson Liu, Chief Executive of HIPG said.
“HIPG as a professional port operator, which Lanwa would be able to take advantage of, will provide excellent services for the project and I am sure we will have a win-win situation.”
The dust-free, overhead enclosed conveyor belt could transport 1,200 tons per hour. A 60,000-tonne ship could be unloaded within three days with the facility.
Lanwa Santha will eventually have a capacity of three million metric tonnes a year.
“This plant is the first of its kind in Sri Lanka utilizing cutting-edge European technology to yield optimum outcomes while being environmentally conscious through continuous monitoring,” Nandana Lokuwithana, Chairman of LanwaSanstha Cement said in a statement.
“Also, we hope that this would be a positive inception for the benefit of the construction industry of our motherland.”
Ceylon Steel Corporation Limited, makes QT bars, hot-dipped galvanized pipes (GI pipes), box bars, round tubes, wire nails, MS rods, purlins and meshes under the ‘Lanwa’ brand.
Lanwa group now produces steel under heavy import protection.
The price gouging and rent-seeking through import protection has been blamed for excessive construction costs that make tourism and other services uncompetitive compared to East Asia and other regions.
Protectionist steel has also made it expensive for young homeless couples to put a roof over their heads and may also lead to scrimping on steel which will lead to building collapses, critics have warned.
At the moment cement is made in Sri Lanka by firms with foreign connections who have had limited success in lobbying politicians for protection. For years they have been hit by price controls.
However, price controls on cement were recently lifted amid shortages and it is not clear whether import protection will come.
LanwaSanstha Cement is targeting major construction projects locally including Port City and expressways once commissioned.
It will produce blended cement, Ordinary Portland Cement (OPC), Portland Slag Cement (PSC), Portland Limestone Cement (PLC) and Blended Hydraulic Cement (BHC). (Colombo/Nov1/2021)