ACL Cables to invest
in a Rs.200 million aluminium rod plant
ACL Cables, the dominant cable manufacturer is
gearing to invest in an Rs.200 million aluminium rod plant in Piliyandala
in August, on the back of targeting much better profits for 2005
compared to 2004 and trying to secure more export orders.
Suren Madanayake, Executive Director, ACL Cables
told The Sunday Times FT that this latest plant will help them secure
more markets and is an attempt at backward integration.
“The new plant will be constructed in Piliyandala
in August in a land in excess of an acre,” he said. He said
that the company’s results will be out soon and that it has
done much better than last year.
Madanayake said that the company’s export
markets and the increase in metal price movements contributed to
the company’s profitability.
The company exports only around eight percent
of its products, but analysts said it is expected that the Indo-Sri
Lanka free trade agreement will offer plenty of opportunities to
the ACL group to tap the Indian market where the margins are much
ACL cables have over 80 percent of the domestic
cable market and 60 percent of the industrial cable market.