January 2021 Records A Boost In Local Cement Production
Posted 16,March

By Chaveendra Dunuwille

In Local News

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With the implementation of many restrictions due to the spread of the Co-vid 19  pandemic the construction sector slowed down drastically. With the subsequent  easing of restrictions the local cement industry which experienced 15.9% YoY  growth in 2020 is extending its growth even further. 

2020 recorded the local cement production quantity at 3.93 million metric tons and showed a 31.2% YoY decline of cement imports valuing at 3.25 million metric  tons. Overall the local cement production & import recorded an 11.5% decline to  7.2 million metric tons YoY in 2020.  

With the easing of governmental restrictions and the increase of demand due to  the stagnant construction sector December 2020 recorded a 400 000 metric tons  local production of cement, a 56.8% YoY increase and an 2.9% YoY decrease in  imports of cements to 304 000 metric tons. Keeping on course January 2021  recorded a 15.5% increase in the YoY production of local cement with a  production of 364 790 metric tons.  

According to Siam City Cement Public Company Limited based in Thailand  despite the pandemic the consumption of cement in Sri Lanka has increased  from 5.9 million metric tons to 6 million metric tons. 

With the increased demand INSEE Cement reported a 4.5% YoY growth recording  a revenue of 5.65 billion Thai Baht. Tokyo Cement also reported a 23% YoY  growth in revenue surpassing the Rs. 6 billion mark in the 4th quarter of 2020.  

With the resurgence of the construction sector it is believed that the local cement  production as well as the competition among producers will increase and  companies such as Lanwa Sanstha Cement Corporation are taking steps to meet  this challenge as they are ready to commence operations on their new  manufacturing plant valued at $ 75 million which will have a capacity of 3 million 

metric tons by May 2021.