Chemanex Group of Companies which is in manufacturing and exporting value-added speciality compounds and intermediates opened its subsidiary Chemcel (Pvt) Ltd’s state of the art Carboxy Methylated Starch (CMS) extrusion plant at the Export Processing Zone in Mirigama last month, a company statement said.
It said that the first phase of the production facility has been constructed entirely with Chemcel (Pvt) Ltd's funding, with negotiations under way for the proposed second phase to be financed by equity from both Chemcel (Pvt) Ltd and J2 Speciality Chemicals in Canada and its associates. “J2 has contracted with a major North American company for the sale of the entire output of the project and will also provide the technological know-how for the implementation and operation of this novel process with its associates,” according to the statement.
This pioneering extrusion plant has been built at a cost of Rs 350 million and constitutes the first phase of the production process and the overall project will require an investment of approximately Rs 1.1 billion.
"Currently Chemcel is completing a challenging intermediate process in the manufacture of the product on a pilot scale at their factory premises in Ratmalana and when all phases of this project are completed, the final product will be exported, in order to be distributed globally, thus significantly increasing foreign exchange reserves for the country, as well as boosting the corporate profile of local venture-stakeholders," the statement said.
The final products of this plant will be exported to leading countries and companies, thereby strengthening global corporate relations, as well as consolidating the development of the national economy and hard-hit exports sector.
The construction of the second phase of this ambitious project is due to commence immediately after the commissioning of the first phase, and is due for mechanical completion by the end of 2012. |
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