Hyrax to Open Sri Lanka Blending Plant


Malaysian company Hyrax Oil plans to open a lubricant blending plant next week at an oil terminal in Muthurajawela, Sri Lanka.

The plant was built through a strategic collaboration with the Ceylon Petroleum Corp. under a build, operate, and transfer agreement, where both parties forged a supply agreement for increased collaboration and partnership, Hyrax Oil Media Advisor Dhanushka Jayawardene told Lube Report. This is the second lubricant blending plant for Hyrax Oil, [with] the first being in Johannesburg, South Africa.

The 43,000 metric tons per year lubricant blending plant was to be built with an investment of U.S. $30 million on a 2.2 hectare site, according to a report by Bernama, Malaysias state-owned news agency, in May 2016 when the project was first announced.

In May 2014, Sri Lankas Ministry of Petroleum Resources Development approved the two companies proposal to establish a blending plant. Ceylon Petroleum was not permitted to manufacture lubricants in Sri Lanka at the time, and it wasnt until March 2016 that the government granted CPC a license to do so, seeding the company $13 million for the new business. Until then, only Chevron Lanka and Indian Oil Corp.s Lanka IOC held blending licenses.

Industry insiders and government officials say trade of counterfeit lubricants has beleaguered the island country. The government is trying to check smuggling of lubricants and counterfeiting trade by enabling local production of quality products.

Currently 13 companies hold licenses to sell lubricants in Sri Lanka: Chevron Lubricants Lanka PLC, Lanka IOC, McLarens Lubricants Ltd., United Motors Lanka Ltd., N. M. Distributors Ltd., Associated Motorways Ltd., Laugfs Lubricants Ltd., TVS Lanka Ltd., Dynamic Motors Ltd., Interocean Lubricants Ltd., Toyota Lanka Ltd., Navaloka ABC Lubricants Ltd. and Ceylon Petroleum Corp.

Kuala Lampur-based Hyrax Oil Sdn. produces transformer oil, motor oil and other specialty lubricants, exporting to about 40 countries in the Asia-Pacific region, Africa and the Middle East. In Mozambique, it is jointly incorporated with state-owned Petroleos de Mocambique, or Petromoc.

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