Jan 23, 2019 (LBO) – A Chinese cement manufacturer is seeking to set up a new cement plant in the Hambantota Export Processing Zone in Sri Lanka.
According to the Deputy Minister of Development Strategies and International Trade, Nalin Bandara, this is the first time a Chinese cement company is entering the local market directly.
“This Chinese company would mainly concentrate on the Sri Lankan market,” Bandara said.
“Even though, we have many manufacturers, almost 55 percent of the local consumption is imported. Therefore, there is an opportunity for a new manufacturer to market cement locally.”
He said that the land allocation and environmental assessments for the project have already been completed, with the plant expected to start production in May 2020.
The Chinese company is expected to source 40 percent of raw material locally and intends to increase it gradually.
Sri Lanka currently has several players active in the industry which caters to the domestic demand and also imports cement from various plants in neighboring countries.