Sierra Cables in Rs.120mn storage expansion drive

Sierra Cables PLC, which is currently in an expansion mode, will be investing Rs.120 million on new storage facilities to meet the expected local and export demand, according to the firm’s latest annual report.

“In the near future, Sierra Cables will invest further Rs.120 million in additional storage facilities to meet the expected export and local demand,” Sierra Cables Chairman Priyantha Perera said.

According to him, the Megapolis project and expected state and private sector construction starting in the latter part of 2017 will spur local demand for Sierra Cables products. The company produces a wide array of electrical and telecommunication cabling.

While the infrastructure projects are picking up, the latest trends seem to point towards a slowdown in construction, especially in the apartment segment, as reported in Mirror Business this week.

Sierra however has been seen diversifying its risks by entering foreign markets in the past three years.

Last year, it opened a manufacturing plant in Kenya with an investment of US $ 2 million to cater to Kenya and announced its plans to enter into manufacturing in Fiji through a joint venture programme to cater to the Oceania region.

Sierra Cables has already hinted at expansions to its operations in Kenya to cater to neighbouring African nations such as Uganda, Sudan, Ethiopia and Somalia.

While the company is setting up foreign manufacturing plants, some of the more sophisticated products are still produced in Sri Lanka and exported to these countries.