Birla to Establish Sri Lanka Carbon Black Plant

Sri Lanka has been named as the location for the Birla Group’s new carbon black facility. The company, one of India’s largest corporations, looks likely to invest RS 4.8 billion (US$120 million) in the plant, which will be located in the country’s south, within the Koggala Export Processing Zone.

“The matter has been under discussions since last year. Aditya Birla Group is likely to go ahead with its proposed $120 million investment on the carbon black plant in Koggala Export Processing Zone, in southern Sri Lanka,” an official was quoted as saying. In a statement Birla said it expects to be granted the clearance to proceed subsequent to a recent meeting between Sri Lankan Minister for Enterprise Development and Investment Promotion Sarath Amunugama and senior Birla Group executives.

Birla had initially selected western India as the site for its new carbon black facility, however feasibility studies and assurances from Mr. Amunugama convinced the company of Sri Lanka’s greater merits as a location. The Minister said that the carbon black plant would give Sri Lanka – a major producer of natural rubber – a competitive advantage in both natural as well as synthetic rubber.