Melwa Group is set to expand beyond its established steel business with the launch of cement production at its Rs. 6 billion grinding and blending facility in Seeduwa, with operations expected to begin within the next two to three months.
Melwa Cement Chief Operations Manager Chinthaka Thuduwewatta said construction of the plant’s civil structures has been completed, with the remaining work focused on mechanical systems, processing equipment and laboratory facilities before production can commence.
The company expects to recover its investment in approximately five years. Based on this timeline, the project would require average annual returns of around Rs. 1.2 billion. Company officials, however, did not disclose details of how the investment was financed, stating that the matter was handled by the group’s senior management.
The Seeduwa facility is expected to produce around 30,000 bags of cement per day, depending on the product mix. At 50kg per bag, this represents approximately 1,500 tonnes of daily production capacity and close to 550,000 tonnes annually. This would be equivalent to nearly 12% of the 4.71 million tonnes of domestic cement demand reported by Tokyo Cement last year.
Unlike an integrated cement manufacturing facility, the Seeduwa plant will not produce clinker or operate a kiln. Instead, imported raw materials will arrive in containers through the Colombo Port before being stored and processed at the facility.
The materials will be proportioned and mixed before being separated according to particle size and stored in three vertical silos for packaging. Thuduwewatta explained that the plant will undertake the final stage of the conventional cement manufacturing process, which accounts for approximately 20% of the overall process.
He noted that the facility does not involve the melting of stone or high-temperature processing, as the operation focuses on blending imported raw materials.
During its initial phase, Melwa plans to introduce three cement product categories, including blended hydraulic cement conforming to SLS 1247 and Portland composite cement manufactured according to SLS 1697. Products will be available in 50kg bags as well as in bulk, with delivery through bowsers carrying between 40 and 60 tonnes.
The plant’s processes are aligned with ISO 14001 and ISO 9001 standards, while its design incorporates European best available standards. The facility has also been designed with an expected operational lifespan of approximately 40 years.
The Seeduwa location was selected primarily because of its proximity to the Colombo Port and the Katunayake Expressway. The company expects the location to simplify the transportation of imported raw materials to the facility and the distribution of finished products.
Melwa Group Head of Sales and Brand Malik Kannangara said the company’s entry into the cement market follows a similar strategy to its expansion in the steel industry. He recalled that when the group entered the steel market in 2002, it faced competition from companies with decades of industry experience, before subsequently establishing a strong position in the local market.
Kannangara said the company expects demand for construction materials to increase as the Government moves towards awarding infrastructure projects to local construction companies. Projects identified by the group include the Kandy tunnel, multimodal transport hubs, water infrastructure projects and the proposed Central Expressway, alongside Melwa’s own construction requirements at Port City Colombo.
The group also plans to use its distribution capabilities to support the new cement business. Kannangara said Melwa operates a large transport fleet capable of reaching locations across Sri Lanka within a day, which will be utilised for cement distribution.
Looking ahead, Thuduwewatta said the combination of steel and cement businesses could also allow Melwa to introduce certified high-strength concrete as a value-added product.
Meanwhile, Melwa’s steel business has secured certification from the UK Certification Authority for Reinforcing Steels (CARES), which is required for supplying reinforcing steel for certain European construction projects. According to Kannangara, the certification process took between three and five years.
He said only three manufacturers in South Asia currently hold the certification, with two based in India, making Melwa the only Sri Lankan manufacturer to obtain the certification.
The certification adds to Melwa’s growing export activities, which include shipments to neighbouring countries as well as a 15,000-tonne consignment of reinforcement steel to Canada. Kannangara described the Canadian shipment as the first of its kind by a Sri Lankan company for the country’s construction market.
Founded in 2002 as the Melwire Group, Melwa has expanded from a steel bar manufacturer into a diversified business with interests spanning construction steel, galvanised products and welding rods.
The group had also explored plans in 2021 to establish a 1.3 million-tonne cement plant near the Hambantota International Port. More recently, Melwa partnered with Prime Group to acquire approximately 16 acres in the Marina District of Port City Colombo, making the partnership one of the largest property investors in the development.
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