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Birla Group to Build New Carbon Black Plant in Sri Lanka, Replacing Patalganga

Major news today. According to the Sri Lankan Ministry of Enterprise Development, Aditya Birla Group plans to build a $120 million carbon black plant in Sri Lanka. The plant will replace a 120,000 tonnes/year plant announced for Patalganga in Western India. In a previous post on this blog from January 31 discussing Aditya Birla Nuvo’s most recent earnings report, Notch noted that the Patalganga plant was under review. Regarding the new plant, Birla’s earnings report had this to say: “Carbon black business, though received environmental clearance for greenfield expansion by 120 K MT in Western India, will decide after examining other sites.”

The Sri Lankan carbon black plant will be located in the Export Processing Zone (EPZ) at Koggala, near Galle, and will serve customers in Sri Lanka, India, and other countries of South Asia. The agreement was finalized at a recent meeting between Sri Lanka’s Enterprise Development Minister Sarath Amunugama and representatives of the Birla Group. Birla is already active in Sri Lanka through cement joint venture. No capacity was released for the new carbon black plant.

Update: Another story about the new plant from The Hindu Business Line.

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