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[June 2004]
Dankotuwa Porcelain Reduces Cost Per Piece
Dankotuwa Porcelain Ltd (Dankotuwa, Sri Lanka) has brought in new plant which will result in major production cost savings and allow the production of new types of porcelain product.
Apparently, the management succeeded in negotiating the purchase of a new kiln and some glazing machines from a company that was going out of business, saving itself some Sri Lankan Rs 200 million in the process. The kiln has been brought in to replace a 21 year-old unit and should increase plant capacity by some 10%.
"With this kiln we will be able to produce some beautiful new products that our designers have been working on," said DPL's CEO, Kithsiri Wijesundara. The kiln can produce non-circular items that are in high demand globally, which the previous kiln was not designed to do. The company is reported to have already saved millions of rupees through several innovations while expanding and upgrading both the capacity and capabilities of its kilns and other equipment.
"The new kiln is expected to reduce our energy costs from the present Rs 10.65 per piece to only Rs 5.15, which would bring huge savings to the company," said DPL's Engineer, Piyasiri Hettiarachchi. "This fast firing kiln can make a product in only six hours, while the old kiln took 30 hours and a further eight hours for cooling."
The new firing regime saves money in another area. It requires no saggars, which alone is thought to be saving around three million rupees a month. The acquisition of two automatic glazing machines from the same source is also expected to enhance the product quality and save on labour costs compared to manual glazing.
It is reported that the total cost savings - taking into account energy, automated glazing and no need for saggars - are expected to amount to Rs 58 million per annum.
ENDS