|Steel and building material producer Onyx Group to invest USD200m in Sri Lanka|
|UAE - 2014 August 11|
Diversified Sri Lankan investor based in the United Arab Emirates, Dubai, Nandana Lokuwithana will invest USD200 million for a heavy industry project in Sri Lanka.
He said that he will make this investment by the end of this year. Heading the Onyx Group in the UAE, a renowned manufacturer of steel and building material related products, he said with the ending of the war, the construction industry is booming and he sees tremendous opportunities in the heavy construction industry and will invest in this segment.
“It’s too soon to divulge finer details but my investment will be related to heavy industries.”
Lokuwithana who acquired Ceylon Steel Corporation Limited in Athurugiriya for USD 90 million five years ago, on a request made by President Mahinda Rajapaksa when the then Korean owners were planning to resell it to another foreign company said he has now been able to turn it around to a profit making venture.
“Though the steel industry is a volume based industry its margins are thin and competition makes the industry very volatile.” “Also we do not re-use recycled or scrap iron material from Sri Lanka to maintain high quality and due to this our brand Lanwa has now become the leader in the industry and are able to call the tune when it comes to prices.”
Commenting on the future plans he said he was looking to re - invest in his steel plant in Athurugiriya where there is 200 acres. “I am looking for a leisure sector investment and currently doing a feasibility study,” he claimed.