July 17, 2013 (LBO) – Sri Lanka’s Tokyo Cement group said it planned to buy two more vessels in the next three years, as the firm expanded. “Therefore, sudden spikes in freight costs have significant and unavoidable negative impacts on the companyâ€™s balance sheet.
“Our decision to invest in our own fleet of vessels therefore, has saved the company,
and the country, millions of dollars by avoiding chartering of vessels to transport raw materials.”
The firm is planning a 50 million dollar expansion in capacity which will up capacity by a million tonnes a year by 2015.
The company said it will upgrade a private dock at Trincomalee port with a channel deepened and a jetty extended to accommodate ships of 28,000 tonnes from the current 20,000 tonne capacity.
The group imports raw materials such as clinker for grinding in Trincomalee.
“Freight costs are subject to external market dynamics