Listed power cable manufacturer, Sierra Cables, yesterday announced plans on expanding its reach by venturing into the African region.
In a filing to the Colombo Stock Exchange (CSE) the company stated it was gearing to up establish a cable manufacturing plant to supply transmission and distribution cables to East African countries.
Sierra Cables makes this move after having recently conducted a survey in Nairobi, Kenya in this regard. “The feasibility study has indicated favourable financial outcomes and a formal project report have now been approved by the board of directors of the company for implementation in the forthcoming months,” the statement read.
Acknowledging that the Kenyan economy is expected to grow by 6 percent end 2015, and the infrastructure development will be a significant contributor in reaching that goal, Sierra Cables expressed keenness in taking part in that growth wave by securing a position in the Kenyan Manufacturing sector.
The company noted that the returns would depend on the facility construction time, initial trial production and the establishment of the marketing processes.
While Sierra Cable is not the first Lankan entity to set foot to Africa, many mini hydro companies have already venture as a number of countries in that region have expressed keenness in entering into MoUs with Sri Lanka for mutual corporation in the power and energy space.