by Maheen Senanayake
"The Ceylon Petroleum Corporation has obtained cabinet approval for a Joint Venture (JV) with Malaysia’s Hyrax to set up a manufacturing plant here," CPC MD Susantha de Silva said last week.
"Currently we market products from Hyrax but they are imported and subject to import duties making us less competitive. With the new venture scheduled for completion by the end of the year, we would be able to compete aggressively with competitor brands,’’ he said.
"We enjoyed an 8% market share, volume-wise in 2012 and in 2013 it went up to 13%. We expect to reach 25% by the end of 2014."
The JV is expected to win a 40% share of the lubricants market, he said.
Hyrax Oil Sdn. Bhd. is a Malaysian company based in Kuala Lumpur. Established in 1991, this company has achieved significant growth since its inception. From its beginning as a supplier of transformer oil, Hyrax Oil has progressed rapidly to become a global player in the manufacture of transformer oil and other petroleum derivatives.
The JV expects to raise US$ 9 million capital – US$ 8 million debt and USD 1 million equity. CPC will transfer five acres of land it owns at Muthurajawela to the JV in return for 30% equity share in the company.
"Currently the proposal is at the Attorney General’s department for its observations. The JV agreement is expected to be signed within two months and the factory is targeted to be operational within nine months,’’ de Silva said.
The project will permit CPC to price its products more competitively. Its network of filling stations will provide a ready made distribution system, he said.
www.island.lk
"The Ceylon Petroleum Corporation has obtained cabinet approval for a Joint Venture (JV) with Malaysia’s Hyrax to set up a manufacturing plant here," CPC MD Susantha de Silva said last week.
"Currently we market products from Hyrax but they are imported and subject to import duties making us less competitive. With the new venture scheduled for completion by the end of the year, we would be able to compete aggressively with competitor brands,’’ he said.
"We enjoyed an 8% market share, volume-wise in 2012 and in 2013 it went up to 13%. We expect to reach 25% by the end of 2014."
The JV is expected to win a 40% share of the lubricants market, he said.
Hyrax Oil Sdn. Bhd. is a Malaysian company based in Kuala Lumpur. Established in 1991, this company has achieved significant growth since its inception. From its beginning as a supplier of transformer oil, Hyrax Oil has progressed rapidly to become a global player in the manufacture of transformer oil and other petroleum derivatives.
The JV expects to raise US$ 9 million capital – US$ 8 million debt and USD 1 million equity. CPC will transfer five acres of land it owns at Muthurajawela to the JV in return for 30% equity share in the company.
"Currently the proposal is at the Attorney General’s department for its observations. The JV agreement is expected to be signed within two months and the factory is targeted to be operational within nine months,’’ de Silva said.
The project will permit CPC to price its products more competitively. Its network of filling stations will provide a ready made distribution system, he said.
www.island.lk
Negative for chevron and lanka IOC
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