Chevron Lubricants Lanka PLC – New Manufacturing Plant Project

chevronnews2In 1994, through the Government of Sri Lanka’s privatization initiative, Caltex International acquired 51% equity in Lanka Lubricants Ltd and GOSL granted another 10% of shares to the employees. In 1996 GOSL sold its 39% equity holding to the public through the Colombo Stock Exchange. To date the ownership structure remains the same.

Caltex completely modernized the current plant with world class technology and enhanced the production capacity with an initial investment of approximately US$ 10 million and kept on injecting substantial capital annually for continuous upgrades to keep pace with the evolving global technology demands. The land on which the Blending Plant is located was leased to Chevron Lubricants Lanka PLC (CLLP)for15 years and further extended for 5 years in 2009, which expires during mid-July 2014.  

The Board of Directors of CLLP decided to relocate the existing plant at an estimated investment of USD 15 million, which will include replacement of certain equipments with the latest technology available in the world and increased storage capacity for Base oil and other raw materials for greater reliability and synergies. A state-of-the-art warehouse facility will also be co-located within the plant premises for optimum cost & operational efficiency and business partner convenience.

The new facility will consist of blending, filling and warehousing with 1.4 million liters storage capacity for raw materials & finished products. The total area of the plant buildings will be 5,000 sq m. with the capacity to produce 45,000 MT of finished lubricants in a single shift operation, and has been designed to improve material flow for optimal efficiency and productivity.

•    Project site – LINDEL Industrial Park at Sapugaskanda lease by Chevron for 30 years
•    Contractor – Indo East Engineering & Construction (Lanka) Pte Ltd

Designing of the plant was done jointly by Indo-East and Chevron Global Engineering with expert advice from a leading US Petroleum Construction Consultancy, Worley Parsons. The new facility is expected to be commissioned during 3Q, in 2014.

Chevron Lubricants Lanka PLC exports its products to Maldives and Bangladesh and has plans in place to grow the business in a sustainable way to benefit all stakeholders.

 

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