Ceylon Oxygen to invest Rs 1.3 b

Ceylon Oxygen Limited, a member of The Linde Group, announced that it will invest Rs 1.3 billion (EUR 9.3 million) for the installation of a new 65 tonnes per day (tpd) merchant air separation unit (ASU) in Sapugaskanda.

Scheduled to come on stream in September 2012, the new ASU will be built adjacent to the company's existing ASU.

The existing ASU will be maintained to ensure reliability of supply.

Ceylon Oxygen's Chief Executive Niran Pieris said, this new plant will be a milestone as it will produce argon and will make Sri Lanka fully self-sufficient in argon. "We are delighted that we will soon be able to offer argon to the local market and potentially for export," he said. "While our existing 24 tpd ASU is capable of meeting the country's total oxygen requirements at present, we anticipate an expansion in demand in line with continued economic growth," he said.