Cheap imports from India and China hit local aluminium trade
Thursday, 23 October 2014 00:53
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FTAs have failed to provide significant benefits to local industries says expert
By Shabiya Ali Ahlam
Alufab, a leading aluminium products manufacturer and supplier, asserts the local industry is negatively impacted with the inflow of cheaper materials from giants India and China.
In the company’s latest annual report that was released last Friday (17), Alufab Chairman P. J. Claesson Claesson shared that stiff competition was experienced from new entrants from India and China, who made inroads into projects for which the company had competed. He noted that with most of the major new construction projects enjoying duty free facilities, Alufab could not compete with lower-priced products from these two major source markets. “These countries, with their advantages of scale, ability and willingness to meet any budget, coupled by the lack of standards and codes of practice in the nation, are making Sri Lanka a good dumping ground,” said Claesson.
He charged that while the Free Trade Agreements (FTAs) have failed to provide any significant benefits to local industries, the authorities should have taken into account possible impacts on the local industry.
“The authorities should have the ability to foresee the challenges to industrial development and help consolidate its small and medium enterprises and local industry without totally depending on imports that take away the local jobs and do not add to the local knowledge base. For any tangible benefits to accrue to the company and the industry, there has to be some form of encouragement and protection of local industries,” he stated.
For the financial year ended 31 March 2014, Alufab recorded a turnover of Rs. 97,963,718, a 31% increase from the previous year. The company recorded a loss of Rs. 42,931,257, which was less than the loss of Rs. 51,586,453 reported for the previous financial year.
Alufab recently became the biggest gainer, percentage wise, with investors toasting the takeover by Hayleys Plc.
Hayleys, which also has a 51% stake in aluminium market leader Alumex, on 15 October acquired a 62.48% stake in Alufab for Rs. 170 million.
