UAE firm wants to revive KKS cement plant
View(s):UAE-based Ras Al Khaimah Cement Company (RAKCC), has expressed interest in reviving the Kankesanthurai Cement Factory (KCF) in Jaffna with a US$ 100 million investment, officials said.
“A Memorandum of Understanding was sent in May to the Ministry of State Resources and Enterprise Development to restart this factory which ceased operations some 20 years ago,” an official told the Business Times. He said that in order to restart operations, a major overhaul and refurbishment of KCF’s manufacturing facility is necessary. “The Ministry is seeking an appropriate party to take over the plant and recommence operations and RAKCC has shown interest,” he said.
He added that the company has carried out a preliminary survey of the plant and is interested in taking over, restoring manufacturing capability and operations in KCF. The tentative plan is to renovate the cement factory in three phases,” another official said adding that Phase one will entail cleaning silos and preparing them to store imported cement and Phase two will restore the grinding mill and install a new Clinker Feed Gantry. Phase three will restore the clinker mill, he said.
Under the proposed agreement, the RAKCC will arrange for a formal techno-economic feasibility study on the viability and phasing of rehabilitating the plant. “This study is expected to be completed within four months and based on the techno-economic feasibility study and RAKCC’s determination that the project will be commercially successful, the ministry and RAKCC will enter into a long-term contract of not less than 35 years where RAKCC will operate and manage the plant,” he added.
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