puts off Rs. 2 billion expansion plans
tableware exporter Dankotuwa Porcelain has postponed plans to build
a new plant that would have doubled its production capacity owing
to the current political uncertainty and will resume the Rs 2 billion
project once a new government is in power and its economic policies
the company, which is having a surge in orders, is going ahead with
plans to install a new kiln in a Rs 200 million project that will
reduce energy cost and improve efficiency and quality.
also expects some benefit from recent European Union tariff concessions
for Sri Lankan exports.
the new project, Dankotuwa was to have set up a subsidiary under
the Board of Investment to increase capacity to 1.6 - 2 million
pieces a year from 0.8 million - 1 million now.
demand for our products is so high we cannot accept all the orders
we get because we do not have enough capacity," said the company's
chief executive officer, Kithsiri Wijesundera.
were thinking of the expansion project but because of the current
political situation, have put it on hold until a new government
comes to power to see what their economic policies are. But we definitely
need new capacity to meet the orders coming our way."
also said that the company was going in for a new kiln.
year we're replacing our energy guzzler, our diesel fired glost
kiln with a gas fired kiln. With petroleum prices going up, it will
help save energy cost."
kilns are used in the manufacture of porcelain tableware for a second
firing at much higher temperatures that gives the product its beautiful
whiteness and glossy finish.
firms are on the look out for ways to reduce energy costs given
the energy-intensive nature of their production process and the
high cost of energy in overall costs.
expects over Rs 50 million savings a year from the new technology.
The new kiln is to be commissioned by September.
EU import duty reductions given to Sri Lanka for following good
labour practices are also likely to give some benefit to Dankotuwa
effective import duty rate has come down to 7.6 percent from 8.4
percent owing to the concessions.
said that even a marginal benefit would be useful in such a price
competitive market as ceramic tableware.
comparison, he pointed out that Bangladesh does not pay any import
duty on its ceramic tableware exports to the EU.