ECONOMYNEXT – Malaysia based Hyrax Oil Sdn. Bhd which has commissioned a contract blending for Sri Lanka’s state-run Ceylon Petroleum Corporation is eyeing other South Asian markets to use excess capacity, officials said.
Hyrex already has customers in Bangladesh it was exporting out of Malaysia, but exporting out of Sri Lanka had advantages Hyrax Group Managing, Director Hazimah Zainuddin said.
"There are significant tax and logistical benefits," she said.
Sri Lanka’s Prime Minister Ranil Wickremesinghe commissioned Hyrex 72,000 metric tonnes a year blending plant build on a 20-year build operate transfer deal for state-run Ceylon Petroleum Corporation.
Hazimah said about 40 percent of the output of the plant could be exported.
"The Bangladesh lubricant market is huge. Even if we could get a share less than 1 percent it will be a big volume," she said.
The firm was also looking at India and other South Asian markets where there were preferential trading access, she said. Hyrax also has an ooperation in Johannesburg, South Africa.
Hyrex had already been supplying lubricants for CPC which were being sold under its Ceypetco brand. It was now in 5th place.
Sri Lanka in the 1990s privatized the lubricant unit of CPC in a privatization drive seen in countries like Malaysian and Vietnam.
But Sr Lanka is now reversing the process. The BOT plant will boost its market share, officials said. (Colombo/June24/2019)