According to Chevron Lanka Chairman Farruk Saeed, efficiency enhancements by incorporating Automatic Tank Gauging and Programmable Logic controllers and the increased capacity of new tanks will result in an estimated 20 to 25 percent increase in capacity.
Construction of the new facility which was announced in 2011 is part of the company’s plans to relocate operations following the expiry of its present lease agreement with Ceylon Petroleum Storage Terminals Limited in July next year.
The factory is built at an estimated cost of Rs.1.9 billion and LLUB is expected to fully relocate its operations to the new plant in second quarter of 2014.
According to Saeed, the firm is progressing well on the construction of the new blending plant in a four and a half leasehold land stretch in Sapugaskanda.
“We have successfully secured all the necessary approvals including environmental clearance, and the land leveling has already been completed,” he noted.
LLUB, which dominates the local market with an approximate 57 percent market share, is likely to be utilizing internally-generated funds for the construction of the plant.