Rs. 525 m revival plan for Paranthan Factory

• Funds earmarked; reconstruction starting before end 2016: Rishad
• Return of Kilinochchi Paranthan to saves foreign exchange

A now-defunct Lankan chemical pioneer is to be revived, with construction work scheduled to start before the end of the year to revive the historic manufacturing giant. 

“We have earmarked Rs. 525 m to start work on the Paranthan Chemicals Factory in Kilinochchi. The construction work will begin before the end of this year,” said Minister of Industry and Commerce Rishad Bathiudeen on 24 April.

Bathiudeen made the announcement while he was on a visit to the 217-acre landmass in Kilinochchi where the former Paranthan Chemicals Factory was located before it was destroyed in 1985. 

Minister of Industry and Commerce Rishad Bathiudeen joined by Northern MP Angajan Ramanathan (second from right) visits the site of former Paranthan Factory in Kilinochchi on 24 April

“With the recommencement of these factories we can produce our total chlorine requirements domestically and save valuable foreign exchange of around $ 900,000 per year that we spend to import chlorine. Once recommenced, Paranthan factory can take its required salt from the Elephant Pass saltern. We are also planning to upgrade Elephant Pass saltern so that we will become self-sufficient in domestic and industrial salt supplies. We have earmarked Rs. 525 m to start work on the Paranthan Chemicals Factory in Kilinochchi, The construction work will begin before the end of this year,” said Bathiudeen.  

Former Paranthan Chemicals Factory, which functioned under the State-owned Paranthan Chemical Co, was established in 1954 as Government Chemicals Factory at Paranthan in Kilinochchi District. It manufactured caustic soda using salt as the key raw material and was re-named as Paranthan Chemicals Corporation in 1957 by the State Industrial Corporation Act No. 49 of 1957. 

The factory was destroyed due to terrorism that began in 1983, and as a result, by 1985, caustic soda and chlorine were begun to be imported for local soap, paper, textiles and manufacturing. At present, Paranthan Chemical Co imports liquid chlorine in 900 kg cylinders and refill in to 68 kg cylinders at its refilling units in Horana and Kalutara. It supplies the entire chlorine to the Water Supply and Drainage Board and private sector industries. Paranthan Chemical Co is a profit-making State-firm that reported more than Rs. 150 m profits in 2015.