Feb 07, Colombo: Tokyo Cement, one of the premiere cement manufacturers in Sri Lanka, said that it had formed a wholly-owned subsidiary to expand manufacturing of cement product and generate bio mass power.
The subsidiary, Tokyo Eastern Cement Company, incorporated under the aegis of Sri Lanka's investment promotion agency, Board of Investment (BoI), will enjoy a tax holiday for five years and after that will be taxed at a 12 percent concessionary rate, the parent company said in a stock filing.
The new company will manufacture cement, cement products, and cement value added products. It will also build and operate a biomass power generation plant for the company's own use and any excess power will be sold to the national grid.
The parent company, based in Trincomalee in the Eastern Province, said according to preliminary estimates, the project would cost 8 billion rupees (US$ 63 million at the current rate). It will be financed mainly by the parent company's equity and bank loans.
The project is expected to be completed in three years.