Malaysian firm starts work on $ 30 m lubricant manufacturing plant

Malaysian Deputy Prime Minister, Ahmed Zahid Hamidi operates an earth-moving machine during the ceremony to commence construction of a 30 million dollar lubricant blending plant, near the capital Colombo on 21 July 2016 - AFP

Malaysian Deputy Prime Minister Ahmed Zahid Hamidi (C) and Sri Lankan Minister of Petroleum Resources Development, Chandima Weerakkody (3R) attend the ceremony to commence construction of a 30 million dollar lubricant blending plant, near the capital Colombo on 21 July 2016 - AFP

Bernama: The collaboration between Malaysia’s Hyrax Oil and Sri Lanka’s National Oil Company, Ceylon Petroleum Corporation (CPC), testifies the commitment and good relationship not only between the business communities of the two countries but also at Government to Government level, said Datuk Seri Dr. Ahmad ZahidHamidi.

The Deputy Prime Minister said the initiative was also a testimony of Malaysia and Sri Lanka’s strong and continuous stable bilateral relationship.

“Malaysia and Sri Lanka enjoy a very cordial bilateral relation both politically and economically.This is evidenced by six agreements signed (previously) by both countries,” he said in his speech at the ground breaking ceremony of Hyrax Oil SdnBhd lubricant manufacturing plant in Gampaha District, Western Province.

He added: “This historical moment today marks another milestone of a Malaysian manufacturing company venturing abroad and likewise, will also encourage other Malaysian enterprises to tap into business opportunities and continue investing in Sri Lanka.”

The event was also attended by Minister of Petroleum Resources Development Chandima Weerakkody.

Hyrax Oil is a Malaysian transformer oils, lubricants and petroleum derivatives manufacturer and marketer which exports to more than 35 countries.

The manufacturing plant costing $30 million will be built on a five acre land and expected to be completed in the fourth quarter of 2017.

“I believe this new manufacturing setup will not only create more jobs here but will also generate more business opportunities for both Malaysia and Sri Lanka,” he said.

Ahmad Zahid said that total trade between Malaysia and Sri Lanka stood at $570.9 million where Malaysia exported US$481.4 million to Sri Lanka and imported $89.5 million from the country in 2015.

The plant is Hyrax Oil’s second outside of Malaysia, the first being in Johannesburg, South Africa.

Ahmad Zahid is on a two-day working visit aimed at enhancing bilateral ties between the two countries.