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Thursday, 6 January 2011






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Laugfs imports metal cutting gas

Partnership with Bharat Petroleum:

The Sri Lankan metal cutting gas industry is a sizeable market which can make further cost effective and safe than current acetylene mixed with oxygen used for metal cutting.

Laugfs Gas Ltd., signed a joint venture agreement with Bharat Petroleum Corporation Ltd of India to import a new brand, Metal Cutting Gas to Sri Lanka under the brand name Laugfs Bharat Metal Cutting Gas (LBMCG), Laugfs Holdings Chairman W K H Wegapitiya told Daily News Business.

“We have seen many opportunities for metal cutting gas in Sri Lanka and during our demonstration stage our buyers were impressed with the product due to its cost advantage,” Wegapitiya said.

Laugfs will cater to individual entrepreneurs and corporates such as the Colombo Dockyard, Railways Department and companies involved with heavy engineering work.

Metal cutting gas market per month is around currently 30,000 kgs in weight and Laugfs expects to capture 50 percent of the market by the end of this year.

“We have already established the network with our existing Laugfs Gas distribution channel while distribution to corporate clients will be done directly. There are 11 islandwide Laugfs Gas distributors and 1600 dealers. We will be reaching 1,200 acetylene agents as well with added incentives,” he said.

“We expect to gain an annual turnover of Rs 50 million from metal cutting gas during the first year and Rs 6.5 billion in annual turnover from LP gas. We have linked up with a Fortune 500 company, Bharat Petroleum which has recorded a turnovers of Rupees seven billion last year,” Wegapitiya said.

Laugfs Gas expects to produce 200 metal cutting gas cylinders per day when production starts in middle January at the Mabima plant.

He said that if the market captures the new product, the company expects to invest in a separate filling plant for metal cutting gas.



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