LOLC moves into agriculture with US company

By Duruthu Edirimuni Chandrasekera

Lanka Orix Leasing Company’s (LOLC), a fast growing financial services company, is getting into micro scale agricultural development work with a US-based company.

According to a senior LOLC official, LOLC’s project development arm, Lanka ORIX Project Development Ltd (LOPD) has with AgriTec Inc., a subsidiary of US-based AgriTec Systems Inc. formed AgriSil Holdings Ltd (AgriSil), a joint venture company early this week. “Each company holds a 50 percent stake in AgriSil which will produce precipitated silica, silica gels, activated carbon and other related products by exploiting AgriTec's technology and patents throughout the major rice growing countries of Southeast Asia and the Pacific-Rim,” Ishara Nanayakkara, Deputy Chairman, LOLC told The Sunday Times FT.

He said the company in co-operation with reputed Thai companies has proposed to develop, initially six precipitated silica manufacturing plants in North East and Central Provinces of Thailand in stages using Rice Husk Ash ( RHA ). “These projects include the design, construction and operations of integrated plants which utilize the rice-husk ash (RHA) generated by the electric plants and process it to liquid sodium silicate, precipitated silica, silica gel and activated carbon in various quantities utilizing AgriTec's technology,” he said, adding that while biomass-fuel plants and traditional precipitated silica plants operate around the world, this will be the first integrated plant to take advantage of AgriTec's technology.

He noted that the board of directors of AgriSil will consist of an equal number of members from AgriTec and LOPD. Nanayakkara noted that LOPD will be responsible for assisting in raising funding for the plants, obtaining relevant local approval and licenses for the plants, identifying suitable land for locations of the plants, providing integrated management services, assisting in sourcing markets and sales of the products and where necessary, providing other incidental services from time to time.

“AgriTec will be responsible for granting the appropriate licenses for the use of the technology and patents, providing technical services for assisting contractors in commissioning plants and bringing them up to production stage, providing assistance in sourcing markets within the Territory, assisting contractors in sourcing machinery and equipment capable of manufacturing the products and providing assistance to contractors in the requisite technical training for plant operating personnel,” he added further.