Paranthan chemicals factory to be revived

The defunct Paranthan Chemicals Factory in Kilinochchi will be revived with an investment of Rs. 525 million to rebuild the factory.

Minister of Industry and Commerce, Rishad Bathiudeen said, "We hope to launch construction work before the end of the year."

The Minister recently visited the area where the Paranthan Chemicals factory was located before it was destroyed in 1985. It covers an area of 217 acres.

"When the factory recommences work, we can produce our total chlorine needs domestically and save valuable foreign exchange of around US $ 900,000 per year. The Paranthan factory can also obtain salt from the Elephant Pass saltern," he said.

The Ministry also hopes to upgrade the Elephant Pass saltern to achieve self-sufficiency in domestic and industrial salt supplies.

The Paranthan Chemicals Factory which functioned under the State-owned Paranthan Chemical Company, was set up in 1954 as Government Chemicals Factory at Paranthan. It manufactured caustic soda using salt as the key raw material and was re-named Paranthan Chemicals Corporation in 1957 by the State Industrial Corporation Act No 49 of 1957. The factory was destroyed during the war which began in 1983, and as a result, by 1985, caustic soda and chlorine had to be imported to make soap, paper and textiles.

At present, the Paranthan Chemical Company imports liquid Chorine in 900 kg cylinders and refills it in 68 kg cylinders at its refilling units in Horana and Kalutara. It supplies the entire chlorine needs of the Water Supply and Drainage Board and private sector industries.

The Paranthan Chemical Company, a profit-making State firm, reported over Rs. 150 million in profits last year, a Ministry of Industry and Commerce press release said.