Financial Times

ACL Cables to invest in a Rs.200 million aluminium rod plant

ACL Cables, the dominant cable manufacturer is gearing to invest in an Rs.200 million aluminium rod plant in Piliyandala in August, on the back of targeting much better profits for 2005 compared to 2004 and trying to secure more export orders.

Suren Madanayake, Executive Director, ACL Cables told The Sunday Times FT that this latest plant will help them secure more markets and is an attempt at backward integration.

“The new plant will be constructed in Piliyandala in August in a land in excess of an acre,” he said. He said that the company’s results will be out soon and that it has done much better than last year.

Madanayake said that the company’s export markets and the increase in metal price movements contributed to the company’s profitability.

The company exports only around eight percent of its products, but analysts said it is expected that the Indo-Sri Lanka free trade agreement will offer plenty of opportunities to the ACL group to tap the Indian market where the margins are much higher.

ACL cables have over 80 percent of the domestic cable market and 60 percent of the industrial cable market.

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