Lanka Special Steels Expands its Export Market Footprint
At the unveiling of its cutting-edge manufacturing facility at Lanka Industrial Estate (LINDEL), in Sapugaskanda, Pravin De Silva, Director and Chief Executive Officer of LSSL, shared significant insights with the media. He emphasized the company's established partnerships with Hindustan Zinc, TATA Steel, JSW Steel, and other internationally renowned suppliers, ensuring the use of top-tier raw materials that result in unparalleled quality finished products, reports Island
Lanka Special Steels Limited (LSSL), the preeminent manufacturer of GI wire in Sri Lanka, has been fortifying its position in the export market since its acquisition by E. B. Creasy & Co. PLC from TATA Steel in 2015. Today, the company stands on five strong pillars: strategic capacity add-ons, insights gained from India's TATA Steel, sourcing the finest raw materials, utilization of state-of-the-art European machinery, and a deep understanding of the South Indian market's influence on transactional dynamics
One notable example is LSSL's hot-dipped GI wire, which holds the prestigious SLS 139:2003 certification, making it the sole wire in the market to possess this distinction. Similarly, LSSL's barbed wire is certified under SLS 31:1988, further solidifying its reputation for unmatched quality. These certifications have enabled successful exports to the United States, Canada, India, and numerous other countries. In fact, Lanka SSL has obtained the Bureau of Indian Standards certificate of IS 280 for galvanized steel wire, facilitating supply to the Indian market.
The strategic advantage of the South Indian market for LSSL becomes evident in its proximity and logistical ease. While most GI wire producers in India are located approximately 1000 kilometers away in the North, Sri Lanka's distance from South India is less than 100 kilometers, providing a significant advantage in penetrating the market. Leveraging its heritage as a former TATA company, LSSL possesses the necessary expertise and understanding of the requirements of South Indian customers, contributing to a substantial portion of their business.
Recognizing the current challenges in the domestic market, LSSL plans to export 70% of its products and allocate the remaining 30% to the local market. Previously, the company primarily served the domestic market, accounting for approximately 90% of its product distribution. However, the potential for exporting LSSL's products became evident, leading to the establishment of a new manufacturing plant in Sapugaskanda, representing an investment of LKR 1.3 billion.
LSSL currently exports indirectly to the United States through Trinity Steel. By supplying 75% of Trinity Steel's GI wire requirement, LSSL successfully reduced their reliance on imports and foreign currency outflows. With plans to operate at full capacity, LSSL aims to export directly to Canada, South Africa, and the Middle East, capitalizing on the growing demand for end-products like wire nails and hangers. The company's domestic value addition to its products ranges from 30% to 35%.