Sri Lankan Blender Prepares to Launch Plant

Laugfs Lubricants Ltd. will launch a 17,000 metric tons per year blending plant near Colombo, Sri Lanka, in July.

Located at the Nittambuwa Export Processing Zone, 25 miles from the Port of Colombo, the plant will become operational in July with capacity to produce 17,000 t/y based on a single shift. The plant will produce the Sri Lankan blenders full range of Laugfs Oil branded automotive engine oils, transmission oils and industrial oils with the exception of synthetic products.

Last month the company announced that it had signed an agreement with Japans Mitsubishi Corp., whereby the latter will exclusively supply base stocks to Laugfs.

Laugfs will blend using additives from major suppliers such as Lubrizol, Infineum and Afton Chemicals, an official from the blenders parent company, Laugfs Holdings Ltd., told Lube Report Asia.

Laughs is the only Sri Lankan lubricant company to hold licenses from the American Petroleum Institute, which defines global industry standards for motor oils, the spokesman added. Laugfs Lubricants also has original equipment manufacturer approvals for Volvo, Renault and Porsche vehicles.

Laughs currently manufactures lubricants in Singapore using API Group II base oils.

Industry analysts had pegged the Sri Lankan lubricant market at 50 million t/y as of Jan. 2014. At that time, 13 companies had license to sell lubricants to the market, including Laugfs. The plant will cater to mainly domestic markets, but a few export markets as well, the official added.