Ceylon Steel Corporation (LANWA) acquires Sri Lanka’s first-ever state-of-the-art GI Pipe Plant
At an investment of a massive Rs. 1 billionDecember 15, 2012, 6:51 pm
BY SURESH PERERA
Ceylon Steel Corporation Limited (CSCL) has acquired the first-ever, state-of-the–art GI PIPE plant in Sri Lanka at a huge investment of Rs. 1 billion.
Sri Lanka’s total monthly requirement of GI pipes is around 3,000 to 4,000 Metric Tons (MT). Apart from our local production, there is also an imported component in the market as traders bring down stocks from Pakistan, China, India, Taiwan and other sources. At present, LANWA SANSTHA produces 60% of Sri Lanka’s demand for GI PIPES, but with our new technology and state-of-the-art production facility, we have the capacity of producing the country’s total requirement.
Our key objective is to convert CSCL into a ‘Steel Village’ – we want to provide all the steel requirements of the nation under this roof. Then a customer can fulfill all his steel requirements within the confines of this ‘Steel Village’ – all under one roof.
It was with the aim of achieving this objective that CSCL purchased Sri Lanka’s first-ever GI Pipe Plant at a colossal investment of Rs. 1 billion. This is a significant step because, as a company and as a country as a whole, we will be saving substantial foreign exchange and also supplying high quality products for a very reasonable price to our customers. The outflow of valuable foreign exchange does not augur well for the economy.
GI pipes are mainly used in medium type industries. People engaged in self-employment use them extensively – furniture, gates, fence wheel burrow manufacturers, for gantries, build children’s playgrounds, hoardings for advertising industry, GI pipe structures and many more. They are also utilized for scaffolding in the construction industry. We found that these people faced a big problem in finding quality material and sufficient quantities at the right prices.
This translates into a sad case of "I can make a beautiful gate and paint it, but at the end of the day if the material used was not up to standard, what can I do?" This is a serious problem local industry facing at the moment. This is an issue because there are no reliable and durable GI pipes they could depend on to deliver a guaranteed end product to their customers. Further, very often prices of imported GI pipes fluctuate posing a serious problem to the industry as producers cannot sell their end products to their customers based on an acceptable standard or at a reasonable price.
LANWA SANSTHA markets a superior quality product exceeding international standards. We have a proven track record in the market for the last 60 years. Customers understand our standards. The gauge, weight, standard length, free of corrosion, superior hot dipped galvanizing, excellent mechanical properties, straightens, superior uniformity of mechanical properties throughout the pipe and the strength of our GI pipes are superior and unmatched.
Most of the GI pipes in the markets are not straight. This can happen in the production process as wellas during bundling and handling. As a result, fabricators face a serious problem in straightening them. LANWA has also introduced a steel pipe without a threaded end. This means the total length of the pipe can be used without cutting it. It is an utter waste to cut the pipes as, for example, if 4 inches is cut from 100 pipes, 33 feet has to be discarded and you paid money for it. This is an unbearable cost for a person who is in a small scale industry or self employment.
We manufacture both threaded and unthreaded GI pipes to suit the purpose. All our products come at an affordable price. They can be used with a guarantee so customers won’t have to face a quality issue in the end product. The end product they can confidently market for a price which matches our market.
It is no secret that most imported GI steel pipes cannot bend and cracks because of their low gauge (thickness) and very poor welding quality. Some of them are zinc -sprayed pipes which are low quality and substandard. Due to this corrosion sets in fast. Even low thickness galvanizing in the market also faces the same problem.
Based on quality standards, LANWA SANSTHA products are more cost effective. They conform to the SLS and other international standards. The LANWA SANSTHA GI Pipe products range from half an inch to three inches diameter. Based on customer requests, we can go further on specifications and character. There is plant capability to go up to six inches in diameter.
Further, Ceylon Steel Corporation Limited took a giant step by introducing QT technology to Sri Lanka investing USD 28 million. The new rolling mill has brought the latest technology to the country through Danieli of Italy, the world’s No. 1 rolling mill manufacturer. The modern mill with QT (Quality and Tempering) technology has set a new benchmark in the construction industry.
Earlier, the old TOR BAR technology, which had a 460 MPA strength in a steel bar, was used. With the acquisition of the new rolling mill, CSCL products marketed under the popular LANWA SANSTHA brand now have a 500-550 MPA strength in their steel bars. Customers saving steel means they can save money.
With steel deposits diminishing in the world, there is a need to melt scrap iron. But, what’s the use if the proper process of melting is not used? There won’t be a proper end product as a result of this incorrect process.
This is akin to a cooking process. One can have the best cooks and the best culinary methods, but if the vegetables and other ingredients used are substandard, the dishes will not be palatable. But, on the other hand if the best cooks and the best culinary methods are combined with top quality vegetables and other ingredients, the dishes will be delicious and much sought after by everybody.
It is the same with the process of steel making. It is a combination of superior raw materials, correct and proven process of making and quality control that ensure a good quality steel product. This is where LANWA SANSTHA stands out as an outstanding, superior quality product. We are adhering to this overall process in keeping with global standards.
A person spends as much as Rs. 50 to 60 lakhs to build a house. The steel bars used in the concrete generally in a building cannot replace as and when a person wants from time to time. But paint, tiles, doors, windows and many other building materials can be changed as and when necessary without damaging the structures or strength of the house.
This means that if low quality steel bars are used for your house, it cannot be reversed. To do so, the entire house will have to be demolished and a new one constructed. There is no other way. Using substandard, low cost steel bars in the market is counter-productive and the saving is minimal, say about Rs. 40,000 to Rs. 60,000 at times.
For this very small amount (around 1% of the house value) is it advisable to place the lives of your family and near and dear ones in danger? That is why you should insist on LANWA SANSTHA steel products which carry the proven seal of quality and durability for the last 60 years in this country.
Steel is for a lifetime. If low quality products are used, lives can be at risk. So, it is important to get the best for the security and protection of one’s house and also to safeguard your loved ones.
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