Chemanex to diversify

Chemanex Limited is to earn 25 percent more from their exports this financial year.

Managing Director Chemanex, Preethi Jayawardane said that the company has secured new overseas orders and was also able to renew contracts with their existing customers.

He said that their profit margins were somewhat eroded due to the rise the prices raw materials in the global market.

“Since we were dealing with global multi nationals we were not in a position the immediately seek a price revision” he explained. However the company this year would be able to review some of these contracts and with the new orders received from other firms would also help them to increase profits form export earnings.

Chemanex a member of the CIC Group of Companies, has been engaged in trading, imported and locally produced chemicals and industrial intermediates with foreign collaboration and overseas technology.

He said that the company’s local sales too are increasing and they also expect a 20 percent increase in sales.

“With the projected demand we needed to streamline our factory operations and we have invested a couple of millions for it. The company also received the assistance from CIC for this factory expansion,” he said.

“We are planning a rapid expansion and for this we needed to infuse funds and this was the reason for us to divest shares in the Commercial Leasing,” he said. “The company is also looking at diversifying this year,” he disclosed.

Jayawardane emphasised that their bottom line was low due to the decline of revenue from exports and not due to a cash crunch.

The Group has successfully ventured into the manufacturing of intermediates for work-wear and specialty chemicals for global markets.

The Group currently exports to over 20 countries with leading multinationals being among their highly satisfied customers. (SS)