Laugfs in BOI venture for chemical manufacturing

   
Laugfs Holdings Limited venture in to Cholera Alkyd Chemical manufacturing in Hambanthota, Sri Lanka. Laugfs Salt and Chemicals Limited, a subsidiary of diversified Laugfs Holdings Limited recently acquired 600 Acer extent of Masiththakkala Lewaya of Hambanthota which was a previously abandoned saltern to develop a modern saltern and salt based chemical manufacturing plan. Laugfs Salt will firstly develop Mahasittakkala Lewaya to a proper saltern to produce Salt and then use salt as raw material for manufacturing Cholera Alkyd Chemicals such as Choleren and Caustic Soda.

Sri Lanka had one of South East Asia’s most productive Cholera Alkyd Chemical manufacturing facilities in Paranthan which was destroyed due to the ongoing terrorist problem. After the destruction of the Paranthan Chemical Plant, Sri Lanka has been a net importer of all cholera Alkyd Chemicals such as Chlorine and Caustic Soda, used for water purification and as raw material for many other industries. It is estimated that Sri Lanka spends over Rs.6 billion annually to import Cholera Alkyd chemicals.  Also, presently, nearly 15-20% of edible salt requirement is met by imported salt from other countries such as India. Sri Lanka will be able to save huge amounts of foreign exchange that are spent for importing salt and salt base chemicals, once this project is up and running. 

Laugfs Salt and Chemicals Limited, a BOI approved project is planning to invest over Rs.800 million in this project which is going to be a joint investment with a Japanese partner who would bring technical expertise of producing chemicals. They are planning to establish a modern and sophisticated plant in Hambanthota once the salt harvests begin. In the first stage of the project, Laugfs will design and develop the Mahasittakala Lewaya to produce salt and the construction of the chemical plant will be in the second stage. Further, this project will generate more than 300 direct job opportunities for people living in the area.