20 November 2020 04:35 am
Sri Lanka’s largest locally owned cement manufacturer, Tokyo Cement PLC yesterday revealed plans to expand its capacity by one million metric tonnes per year at an investment of US$ 12 million.
The company said it expects to sign a supplementary agreement with the Board of Investment (BOI) for the expansion to enhance the production of ordinary portland cement and hydraulic cement by one million metric tonnes per year at its factory in China Bay, Trincomalee.
Based on the preliminary estimates, the project would cost US$ 12 million (approximately 2.28 billion at current exchange rate) and will be mainly financed through internally generated funds and bank borrowings, the company said.
The project is expected to be completed in 24 months.
The company said it is not entitled to any exemptions from the income tax and customs duties on importation of project related items required for the expansion.
For the six months ended September 30, 2020, Tokyo Cement reported earnings of Rs.2.7 billion compared to earnings of Rs.1.35 billion in the corresponding period of last year, which is an increase of over 100 percent.
The revenue for the period remained flat at Rs.19.1 billion.
Meanwhile, the company’s cash balance jumped from Rs.430 million on March 31, 2020 to Rs.1.8 billion by September 30, 2020. The company has trade receivables of Rs.5.1 billion largely unchanged during the last six months.
Tokyo Cement share closed one rupee or 1.61 percent down at Rs.61.00.
The company also settled Rs.2.5 billion of loans during the six months.
St. Anthony’s Consolidated (Pvt) Ltd owns 27.5 percent stake in Tokyo Cement with South Asian Investment (Pvt) Ltd holding another 20.1 percent. Ube Singapore Holdings Pte. Ltd., the joint venture partner of the company, has 10.0 percent stake.