Alufab, a subsidiary of the Hayleys Group, is focusing on obtaining the services of aluminium system suppliers from the Far East, in order to be competitive with Chinese and Indian aluminium systems.
The company said in its annual report 2017/2018, “with the enhanced opportunities, the industry has witnessed the advent of international aluminium contractors, who have forayed into the local market. Especially the Chinese and Indian companies have introduced economically advantageous aluminium systems.”
The report says, Alufab Sri Lankan aluminium contractors have dominantly focused on supplying European standard systems for the local industry which are technically superior and relatively more expensive.
“We are now faced with the challenge in meeting the pricing levels extended by Chinese and Indian contractors. Therefore, Alufab is focusing on getting the services of aluminium system suppliers from the Far East,” the report said.
The construction industry in Sri Lanka has seen a huge growth over the last few years, particularly in the highrise segment.
Several large-scale projects are over and new investments are also progressively being launched.
For the financial year, the company’s performance improved considerably in comparison with the previous year, recording a turnover of Rs. 451.6 million, a growth of 282 million over the corresponding period.
However the company recorded a loss after tax of Rs. 3.1 million as against a loss of Rs. 66 million in the comparative period.
The losses are primarily attributed to delays encountered in the execution of projects which were due to factors beyond the control of the management.
Installation of aluminium and glazing works at sites were delayed owing to incompletion of structural works undertaken by civil contractors, the report said.
During the year the company handled nine commercial projects of which three projects had a value in excess of Rs. 100 million.
The company also handled three high-end residential projects which is a relatively new segment for them. Alufab entered into a supplier agreement with Gutmann GmbH (German propriety aluminium system provider).
“This partnership enabled us to successfully bid for the Lunar Tower project, which is a 48 storey apartment complex developed by Asia Capital,” said Chairman, Mohan Pandithage and Managing Director, Johann Wijesinghe in a joint statement.