Making history: Pioneering trajectory of Chemanex and CIC Holdings

Chemanex Group of Companies (a member of the CIC Holdings Group of Companies), a globally recognised corporate leader in manufacturing and exporting value-added speciality compounds and intermediates, added another feather to its cap with the soft opening of its subsidiary Chemcel Ltd.’s state-of-the-art Carboxy Methylated Starch (CMS) extrusion plant, which took place last week.

The opening witnessed a significant moment in national and global history since this plant is the world’s first commercial scale CMS production facility utilising the patented technology from Archer Daniels Midland Company of USA and is strategically situated at the Board of Investment, Export Processing Zone in Mirigama.

CIC Holdings PLC, a pioneering conglomerate possessing a rich history in chemical manufacturing and distribution, as well as agriculture and production, is the other significant stakeholder of Chemcel Ltd., along with Chemenax PLC.

The first phase of the production facility has been constructed entirely with Chemcel’s funding, while the proposed second phase is to be financed by equity from both Chemcel and Archer Daniels Midland (USA), which will also provide the technological knowhow for the implementation and operation of this novel process.

Posting net sales of US$ 81 billion in 2011, successfully operating more than 265 processing plants and 330 sourcing facilities, with a corporate presence in more than 75 countries worldwide, ADM is a fitting partner for this venture.

This pioneering extrusion plant has been built at a cost of Rs. 350 million and constitutes the first phase of the production process. The overall project will require an investment of Rs. 1.1 billion from Chemcel, in order to achieve the goal of producing 12,000 tons per year of bio super absorbent polymer.

This product, which is used in food packaging, adult and children’s diapers and feminine products, will be produced entirely in Sri Lanka, making it a uniquely Sri Lankan brand. With the recent approval of this product by the US FDA for food use, the anticipated usage of this product has had a significant upturn and wider consumer/supplier outreach.

Currently Chemcel is successfully producing Bio SAP on a pilot scale at their factory premises in Ratmalana, with the intermediate products being air freighted from ADM’s Canadian operation. Once all phases of this grand project are completed, the final product will be exported back to ADM, 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 final products of this plant will be exported through ADM 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.