|$120 mn carbon plant in Koggala
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|Author:||Peter [ Sun Feb 03, 2008 10:51 pm ]|
|Post subject:||$120 mn carbon plant in Koggala|
Birla to set up $120 mn carbon plant in Lanka
Launch of the carbon black plant would give Sri Lanka a competitive advantage in both natural as well as synthetic rubber. The plant would also draw interest from some of the world’s largest tyre manufacturers, including Michelin of France.
@Press Trust Of India /
Colombo February 04, 2008
The Aditya Birla Group, one of India’s largest corporates, is planning to invest $120 million (about Rs 480 crore) in a carbon black plant in Sri Lanka.
“The matter has been under discussions since last year. Aditya Birla Group is likely to go ahead with its proposed $120 million investment on the carbon black plant in Koggala Export Processing Zone, in southern Sri Lanka,” an official said.
The company said in a statement that it expects to get the go-ahead following a meeting in New Delhi recently between Sri Lankan Minister for Enterprise Development and Investment Promotion Sarath Amunugama and senior executives of the Birla Group.
The company had initially selected western India for its new plant, but it is now convinced about the potential in Sri Lanka after feasibility studies and assurances from the Sri Lankan minister.
Carbon black is one of the main raw materials used in the manufacture of tyres. The island nation is one of the world’s largest exporters of solid rubber tyres.
Amunugama said that the launch of the carbon black plant would give Sri Lanka a competitive advantage in both natural as well as synthetic rubber.
Sri Lanka believes that the Birla investment would also draw interest from some of the world’s largest tyre manufacturers, including Michelin of France.
Last week it was reported that another Aditya Birla Group company, Ultratech Cement, plans to acquire a five lakh tonne cement plant in Jaffna which has been closed for nearly 17 years.
The company has initiated talks with Sri Lankan government officials and officials of the plant. Holcim and Tokyo Cement were also said to be keen on the plant, but have been deterred by the unrest in the region.
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