Sri Lankaâ€™s Tokyo Cement woos global investors in US
ECONOMYNEXT – A team of senior executives from Sri Lanka’s Tokyo Cement group are in the US this week meeting with global investment funds to discuss the company’s expansion plans.
Decker & Co., the institutional equities broker handling the visit, said in a statement it aims to introduce the firm’s management to investors seeking “high-quality growth opportunities” in the region.
“Tokyo Cement is an under-researched company with a dominant market position, brand equity built over three decades, and clear growth prospects in light of Sri Lankan infrastructure and building construction projects,” said Mark Decker, founder and CEO of Decker & Co.
The team is led by Vishwa Kuruwita, CFO of Tokyo Cement.
Tokyo Cement currently holds a 35% market share of the Sri Lankan cement market, with total installed capacity of approximately two million metric tons annually.
The company is doing a $50 million production capacity expansion that increases economies of scale and outpaces competitors’ expansions, the statement said.
Tokyo Cement is building a cement grinding plant with one million metric ton annual capacity scheduled to begin operations later this year.
This will increase domestic grinding capacity by 60% and is expected to “substantially raise gross margins compared to importing raw material for cement manufacturing,” the statement said.
The grinding plant is expected to replace approximately 40% of the import volume the company currently brings into the Colombo terminal.
(COLOMBO, July 20, 2016)