Blue Arc to manufacture containerised substations for export under BOI deal

Friday, 27 March 2026 05:01 -     - {{hitsCtrl.values.hits}}

 

Blue Arc Manufacturing and the Board of Investment of Sri Lanka (BOI) have signed an agreement to manufacture the first containerised substation assembly factory in Sri Lanka, specialising in the production of innovative, electrical systems designed for the world’s most demanding environments. 

By leveraging a skilled local workforce and international engineering standards, Blue Arc is delivering high-end electrical infrastructure to the Australian mining, tunnelling, and construction sectors.

The company’s core product range currently includes skid substations, containerised substations, and containerised switch rooms. Blue Arc specialises in assembling these electrical products for the metals, energy, industrial, and infrastructure sectors across multiple projects in Australia.

“These units are fully assembled here in Sri Lanka, tested, and quality-controlled according to international standards before being shipped as self-contained systems for export and rapid deployment at project sites. This modular approach offers speed, efficiency, and flexibility, benefiting the export market. The products are innovative and unique, and we aim to bring the Sri Lankan substation industry to the world stage,” the company said in a statement. 

“We specifically design these units for the tunnelling, mining, and construction sectors throughout Australia. They are fully engineered to meet strict Australian mining and construction standards but we are rapidly expanding our scope to additional sectors ranging but not limited to solar and hydro power, it added. 

The future market for these types of electrical systems design is experiencing robust growth, driven by the need for faster construction, increased energy efficiency, and the integration of smart technologies. 

Key future market trends include the following:

n Prefabrication and off-site assembly: A global shift toward modular, plug‑and‑play electrical solutions that reduce on‑site labour, elevate quality assurance, and dramatically shorten project timelines.

n IoT and smart connectivity: Integration of advanced PLC and SCADA‑based monitoring and control systems enabling remote operation, remote switching. predictive maintenance, and efficiency optimisation.

n Resilience in harsh environments: Engineering tailored for extreme climatic and industrial conditions, ensuring reliability where safety and uptime are critical.

n Safety-driven design: Enhanced fire systems and protection, secure locking systems, emergency lighting considerations and robust industrial enclosures built to withstand high‑stress operational environments.

n Factory-certified quality: All Low & Medium Voltage equipment is tested as per the IEC Standards with a rigorous QA/QC process to ensure customers receive the highest quality products. 

The supply chain of electrical equipment is from China, India, Australia, and locally, then assembled, tested, and delivered as complete electrical substations, utilising local labour for lifting, mechanical, electrical, and welding work. The new product development and manufacturing experience will bring much-needed learning opportunities. The local workforce will gain extensive knowledge in supplying finished electrical products and meeting the high demands and strict quality standards of international markets.

One of the key value additions is the extended local supply chain partnership with local vendors, where major components like switchboards, metal skids, and prefabricated container modules are currently sourced. The in Sri Lanka will provide training and guidance on product design and quality assurance in collaboration with these vendors. This marks the first time that Sri Lankan labour is involved in designing and manufacturing such specialised products for tunnelling and mining applications in the Australian market.

The company has many major projects scheduled for the upcoming year, including the development of new tunnelling and mining products tailored for the Australian market. 

“We also plan to launch an aggressive marketing campaign to promote our substations in markets such as the United Kingdom, India and New Zealand. Our goal is consistent annual growth, and the Blue Arc team is committed to achieving this through various marketing strategies. We also plan to further develop our Sri Lankan workforce and Headquarters as our company expands,” the company said.

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