Chemcel invests Rs 750 m to open plant

Hemanthi Guruge

Chemcel Pvt Ltd, a subsidiary of Chemanex Plc opened a Carboxy Methyl Starch extrusion plant at BOI Export Processing Zone at Mirigama with an investment of Rs 350 million and constitute the first phase of the production.

Chemcel Pvt Ltd Chairman cum Managing Director of the Chemanex Plc Preethi Jayawardena told the Daily News Business that, second phase of the production will commence within a short period with an investment of Rs 750 million.

He said that entire project investment would reach around Rs 1.1 billion and they hope to annually produce 12,000 tonnes of bio super absorbent polymer after the project is completed. “It would also bring large inflows of foreign exchange into the country,” he said.

“The company will provide employment for over 100 people after the completion of the second stage,” he said. Second phase is to be funded mainly by their overseas partner Archer Daniels and Midland Company of USA. “Measures have been taken to export the final product of the plant to the Archer Daniels and Midland Company of USA once they complete the entire project,” he added.

This plant is the world’s first commercial scale Carboxy Methyl Starch production facility utilizing the patterned technology from the Archer Daniels and Midland Company.

Archer Daniels and Midland Company of USA is the partner of this venture that successfully operates more than 265 processing plants and 330 sourcing facilities, and is present in more than 75 countries in the world.

Chemanex is a member of CIC group of companies who has been engaged in producing chemicals and industrial intermediates with foreign collaboration and overseas technology. At present Chemcel is successfully producing Bio Sap on a pilot scale at their factory in Ratmalana.