Gold slump slows demand for activated carbon at Sri Lanka’s Haycarb

ECONOMYNEXT – Sri Lanka’s Haycarb Plc, which also has factories in Thailand and Indonesia, said the group operated below-capacity amid a slump in demand for activated carbon, which is used for gold refining.

Managing Director Rajitha Kariyawasan said a "downturn in gold mining which continues to impact international markets" and competition from Philippines and India made the group under-utilize capacity in the three months to June 2015.

June quarter revenues grew 2.98 billion rupees, which grew 1 percent. Cost of sales fell 3 percent to 2.19 billion rupees and gross profits rose 15 percent to 753 million rupees.

Bad weather had hit raw material supply in Indonesia. Haycarb makes activated carbon from coconut shells.

However the firm had business from new areas and there has been an upturn in higher value products, despite a fall in sales volume.

Profits rose 7 percent to 150 million rupees, in the June quarter, giving earnings of 5.06 rupees per share. (Colombo/Aug06/2016)

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