Ceylon Steel Corporation Ltd. (Lanwa), says cumulative investments in recent projects amounts to over $ 250 million as it laid the foundation for two state-of-the-art production facilities for steel and roofing sheets at the Lanwa Sanstha Industrial Precinct in the Mirijjawila Export Processing Zone.
The aim of this project is to revitalise the local construction sector in the post-pandemic context by making essential raw materials readily available.
The foundation stone for the new steel facility was laid by President Gotabaya Rajapaksa with Prime Minister Mahinda Rajapaksa and other ministerial delegates in attendance.
The steel factory embodies Sri Lankan ingenuity by using iron ore as the primary raw material for manufacture of billet, bars and rods departing from the norm of using imported, costly steel billets. This backward integration is expected to save the local economy millions of dollars, which is the need of the hour.
The facility is optimally sustainable as it adheres to local and global procedures and protocols pertaining to environmental safety. The total output of the facility, once commissioned, will be 600,000 MT of steel billet, rebars and wire rods per annum. This volume is expected to make Sri Lanka self-sufficient in the foreseeable future. The excess supply will be exported via the Hambantota International Port.
Most of the raw materials are to be sourced locally to empower local suppliers as well as to provide an affordable product to the market. Lanwa’s state-of-the-art infrastructure i.e. the 2.4 km conveyor belt from Hambantota Port to the EPZ will be used to transport raw materials to the factory and manufactured goods from the factory ensuring optimum sustainability and minimum wastage.
“The facility will generate over 1,500 jobs directly and about 3,000 jobs indirectly. This will take Sri Lankan ingenuity to the world as well as support the domestic industry by managing and mitigating shortages and unprecedented fluctuations that typically occur due to overdependence on imports. This venture is a win-win for everyone,” said Ceylon Steel Corporation Chairman Nandana Lokuwithana.
The foundation for the Lanwa roofing sheet facility was laid by Trade Minister Dr. Bandula Gunawardena, Energy Minister Pavithra Wanniarachchi, State Minister of Aviation and Export Zones Development D.V. Chanaka and State Minister of Cooperative Services, Marketing Development and Consumer Protection Lasantha Alagiyawanna.
This facility will utilise cement from the sister company, newly commissioned Lanwa Sanstha Cement Corporation Ltd., as the key ingredient to manufacture up to 400,000 MT of asbestos and non-asbestos roofing sheets and other allied products per annum.
“A highlight of this facility would be the ‘colour coating’ unit which will incorporate cutting-edge technology making it the first and only one of its kind in Sri Lanka and the region. The cumulative investment for recent Lanwa projects amounts to over $ 250 million,” Lanwa said.
Irrigation Minister and State Minister of National Security, Home Affairs and Disaster Management Minister Chamal Rajapaksa laid the foundation for staff quarters – ‘Haritha Medura’ – for Lanwa employees as part of the aggressive expansion efforts.
The group recently declared open a state-of-the-art cement manufacturing plant, Lanwa Sanstha Cement Ltd., with an investment of over Rs. 25 billion. The total capacity of the facility is 2.8 million MT of cement per annum. This project is seen as a timely endeavour to offer a respite for the local construction community impacted by the shortage of cement over the past two years due to import restrictions put in place to mitigate the rupee depreciation.
