Financial Times

New Chemanex plant to supply oil drilling industry
By Iromi Perera
Chemanex Ltd., which manufactures and sells chemicals and consumer durables, is building a new production plant and plans to make a range of chemical products used by the oil drilling and exploration industry in an innovative venture aimed at penetrating new markets overseas.

The company is surveying prospects in the Middle East and Arabian Gulf among oil drilling companies as it feels that there is a big market in this sector. "Sri Lanka mainly exports tea, rubber and apparels. Our company has gone into a special area of specialised chemicals and this new project is to further expand it," P. R. Saldin, Director/General Manager of Chemanex Ltd., told The Sunday Times FT.

The new plant is to be set up in Ratmalana, under Chemcel (Pvt) Ltd, its new BOI approved subsidiary company, where the new range of chemicals will be prepared. The investment in the new plant was not immediately available. A pilot plant to develop these new products has already been operated with the help of foreign experts.

Chemanex also plans to expand the manufacture of specialised chemicals to enter new industries such as pharmaceuticals. The company already has the laboratory facilities and is bringing in new technology and expertise to further advance their product manufacturing, Saldin said.

The company's subsidiaries of specialised chemicals supply to ceramic, textile, and detergent industries in around 20 countries in Asia, Europe, Middle East and Australia. Chemanex group profit after taxation increased by 81 percent to Rs 116 million in the year ended March 31, 2004 from Rs 64 million the year before.

Back to Business