Pakistani cement company signs agreement to set up US$ 15.15mn plant in H’tota

SLPA says investments flow into industrial park within port premises



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Dr. Priyath B.Wickrama - Chairman of SLPA, and Muhammad Fazlullah Shariff - CEO & Vice Chairman of Thatta Cement Company Limited, Karachi Pakistan exchanging the agreement in the presence of Rohitha Abegunawardhena - Minister of Port and Highways (Project). R.W.R.Pemasiri - Secretary of the Ministry of Port and Highways, Anuradha Wijekoon - Additional Secretary (Ports) of the Ministry of Port and Highways, Indika Karunajeewa - Vice Chairman of SLPA, Capt. Nihal Keppetipola - Managing Director of SLPA, Norman Weerarathne - Additional Managing Director of SLPA, Dr. Sanjaya Sedara Senarath - Executive Director of SLPA, F.Ibrahim - Consultant and the Local Partner of the Thatta Cement (Pvt) Ltd and Nasim Beg of the Board of Directors of Thatta Cement Company Limited in Pakistan of SLPA are also present.


A new business venture, Thatta Cement Company (Pvt) Ltd signed a Business Venture Agreement with Sri Lanka Ports Authority on 5th April 2013 to construct a Cement Grinding and Bagging Plant at Magam Ruhunupura Mahinda Rajapaksa Port (MRMRP).


Thatta Cement Company (Pvt) Ltd is the local subsidiary company of Thatta Cement Company Limited in Pakistan. The proposed plant will employ a closed circuit cement grinding mill, cement and packing plant for cement manufacture and dispatch. The total investment is concluded as US$ 15.15 million to be incurred during the first five years of operation.


The Business Venture Agreement in this regard was signed between Dr. Priyath B.Wickrama - Chairman of SLPA, Capt. Nihal Keppetipola - Managing Director of SLPA and Muhammad Fazlullah Shariff - CEO & Vice Chairman and Khawaja Mohammad Salman Younis - Director of Thatta Cement Company Limited, Karachi Pakistan.


"After the end of 30 years civil war currently, Sri Lanka is being rapidly developed, whilst constructions of infrastructures, hotels, high-rise office and apartment complexes, hospitals, new harbors as well as new air ports have become apparent signs of the oncoming socio-economic prosperity. One of the most important material for all of these projects is cement. By 2008 Sri Lanka was consuming more than 3.5 million Mt of cement per year and it was increasing at the rate of more than 8% per year at that time. However the local production is less than half of the demand requirement in the country," the SLPA said in a statement.


Speaking at the occasion Rohitha Abegunawardhena Minister of Port and Highways (Project) stated that the US$ 650 million investment by the foreign investors at the very first stage of MRMRP has further strengthen the confidence of global industrial and commercial giants of the success of this innovative project in southern Sri Lanka. "The port in Hambantota is a major economic centre that has ensured to bring socio-economic prosperity from the south to whole Sri Lanka in the future," he said.


Dr. Priyath B.Wickrama - Chairman of SLPA speaking at the occasion stated that the effective intervention of His Excellency the President Mahinda Rajapaksa to lure the international community to commence business in sustainably peaceful environs in the country has dawn an era of prosperity to all Sri Lankans. "At the second stage of these investment process at MRMRP, 11 more investors will arrive at the port with investments of nearly US $ 1.1 billion that would carry the total investment by investors at MRMRP up to US $ 1.8 billion. The port in future will play a key role in the Indian sub continent to enrich the industries in the region," he added.


Expressing confidence in the on going post war developments in the country to commence convenient commercial ventures Muhammad Fazlullah Shariff - CEO & Vice Chairman of Thatta Cement Company Limited, Karachi Pakistan said that further support by the present SL Government and the authorities will be an added strength to successfully develop these industries in Sri Lanka to strengthen socio-economic ties.


This Business Venture Agreement is signed for a term of 25 years. At the commencement minimum guaranteed production volume of the plant will be 100,000 Mt/ year and it will be increased gradually up to 1,000,000 Mt/ year at the end of first decade. Land allocation for this business venture will be 4 hectare and that will generate minimum revenue of US $ 9.9 million over the 25 years, via a land lease agreement. In addition to that by royalty payment Sri Lanka Ports Authority (SLPA) will earn US $ 65.5 million over 25 years. SLPA will achieve more benefits via this project as it generates number of vessel movement at the port. Since Thatta Cement willing to employ more than 150 Sri Lankan, the project is worth to our country from that view too.


Faiz Musthafa - Hon. Minister of Investment and Promotions, Mr.R.W.R.Pemasiri - Secretary of the Ministry of Port and Highways, Mr.Anuradha Wijekoon - Additional Secretary (Ports) of the Ministry of Port and Highways, Mr.Janaka Kurukulasooriya - Chairman of Urban development Authority, Mr.Indika Karunajeewa - Vice Chairman of SLPA, Capt.Nihal Keppetipola - Managing Director of SLPA, Mr.Norman Weerarathne - Additional Managing Director of SLPA, Dr.Sanjaya Sedara Senarath - Executive Director of SLPA, Mr.D.W.Atapattu - Director (Logistcs) of SLPA, Mrs. Shirani Wanniarachchi - Director (Finance) of SLPA, Mr.A.D.T.Gunasekara - Director (Technical) of SLPA, Major General Sanath Karunarathne - Director (Security) of SLPA, Mr.Agil Hewageegana - Chief engineer (Southern Port Dev.), Mr.Nalin aponso - Deputy Chief Manager (Communication and Public Relations), Mr.F.Ibrahim - Consultant and the Local Partner of the Thatta Cement (Pvt) Ltd and Mr.Nasim Beg of the Board of Directors of Thatta Cement Company Limited in Pakistan were also present at the occasion.


Lanka Sugar Refinery Company (Private) Limited and Hambana Petro Chemical Ltd also recently singed their Business Venture Agreements with SLPA to start construction work at MRMRP. With the latest additions, the total investment of all these companies is nearly US $ 650 million and the total revenue from the same is US $ 165.03 million over 25 years period. Aforesaid revenue received just from the land lease and royalty payment whereas there are many other benefits such as increased vessel movements and job opportunities arise from these industries. Hence this industrial zone and the free port facility can interact effectively on mutual basis.


Recently, the Hamabana Petrochemical Limited signed the Business Venture Agreement with Sri Lanka Ports Authority (SLPA) for the proposed project to set up a plant for producing Bottle Grade Polyethylene Terepthalate Packaging Resin.


The Business venture agreement, was signed for an initial term of 25 years and the expected total investment of this Business Venture is US $ 137.39 million. Hambana Petrochemical Ltd would require to import raw materials of 453,000 Mt of Purified Terephthalic Acid, 183,600 Mt of Mono-Ethylene Glycol and 10,800 Mt of Purified Isophthalic Acid per annum. As the investor is willing to export the total production, hence, this will lead to increase the port activity approximately by 45,000 TEU’s and 180,000 Mt liquid cargo per annum and the annual turnover from this facility will be approximately US $ 01 billion annually.


It is the largest single location PET plant in the world and would also be integrated subsequently with a PTA plant, that would be set up in the 2nd phase with a capital outlay of US $ 450 million. The total tonnage for the port through this industry in phase I & II is close to 04 million tons.


Greatly supporting the regional development of the southern region on one hand, the port has already secured US$700 million in investments including US$220 million from another major Indian sugar producer - Shree Renuka Sugars Ltd.


The company has by now, signed the Business Venture Agreement with SLPA and has formed its subsidiary local company Lanka Sugar Refinery Company (Private) Limited.


The Business venture agreement is signed for a term of 25 years. The initial capacity of this plant is 2000 Mt/ day, which will be expanded up to 3000 Mt/ day subsequently. Raw sugar is expected to be imported by the Business Venture for refinement at this proposed plant. The company has planned utilize local human resource to the maximum level and expects to engage a 1500 -2000 work force during the construction period. During their steady state of operation, nearly 300 -350 are expected to be employed by them in various technical and commercial   levels. Apart from the above, nearly 1000 persons are expected to get indirect employment opportunities through this. The construction work of this plant is expected to complete within 24 months. The expected annul land lease and royalty revenue from this investment will be US $ 63.86 million.


In addition to that there are four more Cabinet approved investors are eagerly waiting to sign and commence their business ventures at MRMR Port. Accordingly, Hayles Advantis Ltd (Fertilizer Bagging Plant), McLarnes Holdings Ltd (Warehousing), Agalawatta Plantation PLC (Warehousing) and ACE Distripaks (Pvt) Ltd (Warehousing) have expressed themselves to commence business at the zone.


Following the commissioning of the port, MRMRP is successfully engaged in domestic and transshipment RO-RO operations whilst the inauguration of the second stage sooner this year will commence storing bunkering fuel making a key component of the functionality of the port project a success. This would initiate with a view to attract cargo vessels traversing one of the busiest East-West shipping routes for refueling and services. The new port will also be equipped with the latest technology to ensure higher efficiency in order to reduce operating costs and improve profitability. Following the successful completion of Phase II of MRMRP, the port will cater as a fully fledged industrial plus container port.


 
 
 
 
 
 
 
 
 
 
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