Sri Lanka: Tokyo Cement plans expansion project

Sri Lanka-based Tokyo Cement plans to invest US$50m on a capacity expansion of 1Mta to help cater for local demand requirements.

The group has already formed a new subsidiary under the name of Tokyo Eastern Cement for the implementation of the project over the next two financial years. The project will receive a tax holiday of five years, and therefore a tax rate of 12 per cent. The company proposes to finance the project with internal funds and loans.

During FY13-14, the group’s revenue rose by six per cent and operating profit jumped 65 per cent rise. It currently caters for over 35 per cent of domestic demand through its subsidiaries.