Tokyo Cement says $ 12 m investment expansion a direct nod to Govt. policy

Tuesday, 24 November 2020 01:15 - - {{hitsCtrl.values.hits}}

From right: BOI Chairman Susantha Ratnayake , Tokyo Cement Company (Lanka) Managing Director S.R. Gnanam (centre) and Director Christopher Fernando sign the Investment Expansion Agreement

Tokyo Cement Company (Lanka) PLC recently entered into an investment expansion agreement with the BOI, reflecting its appreciation towards the Government’s farsighted decision to encourage the local manufacturing sector.

The company recently announced plans to increase local production capacity by a further one million metric tons with an investment of $ 12 million.

“The investment received the green light by the Chairman and the Board of Directors of Tokyo Cement Group, as a show of confidence towards the President and the Prime Minister’s bold decision to encourage and uplift local manufacturers,” the company said in a statement.

With the introduction of restrictions on unnecessary imports, the economy has been able to curtail the outflow of valuable foreign exchange, enabling local manufacturers in almost every sector to pursue their long-term growth plans with greater confidence. Tokyo Cement’s decision to boost production, directly reflects this positive outlook, encouraged by the Government’s pragmatic policy stance.

The new investment will significantly enhance local value creation; with the addition of more direct and indirect employment opportunities, compounded by the thousands of ancillary product and service suppliers supported through local cement manufacturing, setting off a ripple effect of economic benefits as envisaged by the Government.

The added capital will push up the installed capacity at the Tokyo Cement Factory in Trincomalee, reinstating the company’s readiness to cater to the future growth in demand of the local construction industry.

With an 18-month expansion plan Tokyo Cement will increase the production of Tokyo Super, Nippon Cement and Nippon Cement Pro, market leading brands of Ordinary Portland and Blended Hydraulic Cements, using state-of-the-art advanced technology. The move will firmly establish the company’s position as a reputed manufacturer and supplier of cement and concrete, and affirm their position as the leading partner in nation building.