Thursday 4 June 2015

Archer Daniels Midland to close Sri Lanka Chemcel unit

COLOMBO (EconomyNext) – Agribusiness multinational Archer Daniels Midland plans to close its Sri Lankan specialty chemicals manufacturing unit Chemcel (Pvt) Ltd. in which Chemanex PLC has a stake, a stock exchange filing said.

“Archer Daniels Midland Europe BV, the main shareholder of Chemcel, has informed us that Chemcel will cease operations based on a number of considerations,” Chemanex said in a statement.

“We currently own 23.15 percent of Chemcel and it is reflected in our books at an investment value of 272 million rupees,” it said.

“Chemcel has substantial cash balances and it is currently estimated that upon a liquidation of the company Chemanex PLC would be able to realise its investment value.”

The Chemanex statement did not elaborate on the reason for Chemcel’s closure and senior Chemcel officials were not immediately available for comment.

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