Chevron Lubricants Lanka starts work on $ 15 m new plant
Saturday, 13 July 2013 00:36
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Chevron Lubricants Lanka Plc (CLLP) this week began work on its new blending plant at Sapugaskanda with an investment of $ 15 million. The new venture is on account of the lease of land on which the existing blending plant is located expiring in-mid July next year.
The CLLP Board decided to relocate the existing plant at an estimated investment of US$ 15 million, which will include replacement of certain equipments with the latest technology available in the world and increased storage capacity for base oil and other raw materials for greater reliability and synergies. A state-of-the-art warehouse facility will also be co-located within the plant premises for optimum cost and operational efficiency and business partner convenience.
The new facility will consist of blending, filling and warehousing with 1.4 million litres storage capacity for raw materials and finished products. The total area of the plant buildings will be 5,000 square metres with the capacity to produce 45,000 MT of finished lubricants in a single shift operation and has been designed to improve material flow for optimal efficiency and productivity.
The project is located at LINDEL Industrial Park at Sapugaskanda which has been leased by Chevron for 30 years. The contractor is Indo East Engineering and Construction (Lanka). Designing of the plant was done jointly by Indo-East and Chevron Global Engineering with expert advice from a leading US Petroleum Construction Consultancy, Worley Parsons. The new facility is expected to be commissioned during 3Q in 2014.
Chevron Lubricants Lanka exports its products to Maldives and Bangladesh and has plans in place to grow the business in a sustainable way to benefit all stakeholders.
In 1994, through the Government of Sri Lanka’s privatisation initiative, Caltex International acquired 51% equity in Lanka Lubricants and GOSL granted another 10% of shares to the employees. In 1996, GOSL sold its 39% equity holding to the public through the Colombo Stock Exchange. To date the ownership structure remains the same.
Caltex completely modernised the current plant with world class technology and enhanced the production capacity with an initial investment of approximately US$ 10 million and kept on injecting substantial capital annually for continuous upgrades to keep pace with the evolving global technology demands.
