Tiles expands output, warns of clay shortage
Lanka Tiles Ltd. has announced plans to expand production capacity
by 10 percent in order to meet growing demand but sounded a warning
that the ceramics industry might run out of clay.
Director, Mahendra Jayasekera, said the project will cost Rs 130
million and be financed entirely by borrowings. The company has
forecast total turnover in 2004/2005 at around Rs 1,440 million
whilst the budgeted profit is Rs 140 million.
said in the company's annual report that it currently operates in
a rather difficult environment. The ceramic industry is currently
facing problems such as persistent difficulties in mining raw materials
and the non-tariff policy framework that decidedly favours imports.
industry is currently facing a severe shortage of ball clay due
to the severe restrictions on mining ball clay, he said. This not
only threatens the survival of existing ceramic companies but also
inhibit future investments in the industry.
group recorded a profit after tax of Rs 138 million this year, the
highest the company has achieved in 20 years.