KKS factory to be revived soon with foreign investment
The 66 year-old Kankesanturai Cement Corporation (KCC), which suspended production after the Sri Lanka Army took over the land and buildings with the escalation of the war in 1990, is to be revived soon, a senior official said. Established in 1950 – at the time as the only cement factory in South Asia, the KCC is to be re-started with an investment of Rs. 1,500 million with plans to recover the investment in 15 years at 8 per cent profit, according to Reyyaz M. Salley, Executive Director, Sri Lanka Cement Corporation (SLCC).
He said that serious discussions are underway to get foreign investors from Singapore, India, Malaysia and also from the United Arab Emirates. Such discussions to find foreign investors were also held during the earlier regime. He said that more recently they also had discussions on this matter with the Pakistan Government. Pakistan, he said is interested to set up a grinding mill in Hambantota to grind limestone, pack them and distribute. Today’s requirement of cement in the country is met by 70 per cent imports and the balance produced in Sri Lanka by Holcim (Lanka) Ltd and Tokyo Cement.
He stressed that if the KKS cement factory is revived a big chunk of cement imports – limiting imports to a total of 60 per cent of demand – could be reduced and as a result foreign exchange in the range of US$13 million could be saved, annually.Mr. Salley told the Business Times that they are struggling for survival now with no sufficient funds to pay the salary bill of the small number now employed. He said that in 1983 when the production was found to be insufficient to meet the cement requirements of the country, the SLCC was floated to supplement the requirements. But in 1990 with the occupation of the SLA and declaring the corporation area as high security zone all production at KKS was stopped. Even now it is in the same position, Mr. Salley pointed out.
Today 27 companies import cement to the country, he said and pointed out that the 27 companies import around 15,680 metric tons, per month.
He said that they had discussions with C. V. Wigneswaran, Chief Minister, Northern Province on the revival plans of the KCC and latter has given his consent. Mr. Salley also indicated that they had discussions with Ruwan Wijewardene, Deputy Minister of Defence on getting the KKS cement factory land back. Mr. Salley said that the machinery fitted in to the KKS factory was in running condition though they stopped functioning for years. But the armed forces who occupied the factory premises have stripped this machinery into pieces and sold it as scrap iron for meagre sums.