Malaysian transformer oils, lubricants and petroleum derivatives manufacturer and marketer Hyrax Oil Sdn Bhd, which exports to more than 35 countries, will be investing US$30mil (RM120mil) to establish a four-million-litres-per-month lubricant blending plant in Muthurajawela in western Sri Lanka.
The 2.02ha plant is Hyrax Oil’s second plant outside of Malaysia after the first joint-venture plant in Johannesburg, South Africa.
Three agreements were signed on Friday between Hyrax Oil and Ceylon Petroleum Corp (CPC), the national oil company of Sri Lanka, for a period of 20 years.
The signing was witnessed by the International and Trade Industry Minister Datuk Seri Mustapa Mohamed and the Sri Lankan Minister of Petroleum Resources Development, Chandima Weerakkody.
Mustapa said the signing marked a milestone for the Malaysian manufacturing company.
“This is a historical moment for us (Malaysia). This encourages other Malaysian companies to tap into the market and invest here in future,” he said.
Meanwhile, Weerakkody said this partnership would bring many benefits to Sri Lanka.
“Upon completion, the plant will create employment for locals, and consumers here will enjoy premium quality lubricants at much more competitive prices,” he said, adding that the government of Sri Lanka encouraged and welcomed Malaysian investments.
Also present at the function were Malaysian High Commissioner to Sri Lanka Wan Zaidi Wan Abdullah, the Commission’s Second Secretary/Head of Chancery Azhar Mat, Malaysian Investment Development Authority (Mida) deputy chief executive officer II Datuk N. Rajendran, Malaysia External Trade Development Corp (Matrade) senior director (strategic planning division) Wan Latiff Wan Musa and Matrade trade commissioner in Chennai, Zuaziezie Zulkefli.
Hyrax Oil founder and managing director Datuk Hazimah Zainuddin said the company’s expansion into Sri Lanka would boost the growth of its lubricant oil segment in foreign markets especially within the seven countries under the South Asian Association for Regional Cooperation (SAARC), including Sri Lanka.
“Construction of the plant will start within two months, and it is expected to be completed within a year.
“The new plant is expected to chalk up revenue of US$60mil (RM240mil) per annum from Sri Lanka and countries within this region,” she told Bernama after the signing ceremony in Colombo on Friday.
Hazimah indicated that 70% of Hyrax Oil’s revenue comes from the export market, with Sri Lanka accounting for 25%, while only 30% comes from the domestic market (Malaysia).
The three agreements that were signed are for a build, operate and transfer (BOT) agreement, a supply agreement and a land lease agreement.
Hyrax Oil will construct the plant and subsequently manufacture the lubricant products for CPC for a term of 20 years.
Hyrax Oil has successfully marketed its products in Australia, New Zealand, Korea, China, Thailand, the Philippines, Mozambique, Nigeria, Tanzania, Ghana, Saudi Arabia, the UAE, Pakistan, Nepal and Bangladesh.
Incorporated in 1991, Hyrax Oil has been in the market for 25 years.
Its Malaysian plant, situated in Jalan Meru, Klang, started operations in 1995 and is capable of producing in excess of 50 million litres of oil products per annum.
Its products include specialty oils like transformer and cable oils as well as high-performance automotive, marine and industrial lubricants.
Hyrax Oil’s local customers include multinational companies, Malaysia’s Finance Ministry and Defence Ministry, as well as Tenaga Nasional Bhd.
(Bernama)
