May 17, 2010 (LBO) – Sri Lanka’s Tokyo Cement Company (Lanka) has set up a fully-owned subsidiary to sell excess electricity from a power plant at a cement factory to the island’s national grid. The company said in a stock exchange filing the subsidiary, Tokyo Cement Power (Lanka), will start commercial operations after getting the required licences and permits from regulators.
It said the main aim of the subsidiary is to set up and operate a power generation plant and to use power generated by it to supply to the national grid which is run by the state-owned Ceylon Electricity Board.
Tokyo Cement is a joint venture between Nippon Coke & Engineering Company (formerly Mitsui Mining Co.), the largest coal-mining company in Japan, and the local St. Anthony’s Consolidated.
Last year the firm commissioned a new mill and biomass power plant at its cement manufacturing factory in the eastern port of Trincomalee.
The company has said the biomass power plant will not only reduce energy costs but will also be a source of revenue by way of sale of excess power to the national grid.