The srilanka Cement Corporation (SLCC) has planned to initiate the revamping of the Kankesan Cement Plant in Kankesanthurai with an overall investment of Rs.1500 million. SLCC has presented a proposal report to the Ministry of State resources and Enterprise Development with regard to adding the mechanism and restructuring of the whole plant. SLCC plans to recover this investment within 15 years after commencing operations, with a net profit contribution of 8%.
This plant is the only plant is the only plant in south Asia which commenced operations initially in the 1950’s its expansion began. The factory is owned by Sri Lanka Cement Corporation at KKS, which had an annual manufacturing capacity of 760,000 tones, have not been functioning sinceJune 1990due to the security situation in the north.
It is estimated that the market is growing at the rate of 10% per annum. Sri Lanka imports more than 70% of cement requirements, both in bulk and bags, from Pakistan and India. Based on the customs details, srilanka had imported around 11 million metric tons of cement from January 2008 to may 2013.
The country has invested more than Rs.108 billion for this import of cement. After the total commencement of the plant corporation at KKS we will be able to produce about 10% of the cement requirements of Sri Lanka initially. We will be able to save up a minimum of US $ 13 million in foreign exchange per annum.