Sept 23, 2010 (LBO) - Sri Lanka's listed graphite miner and exporter Bogala Graphite plans to acquire a manufacturing plant from its German parent firm that would enable it to make value-added lubricant products, a statement said.
Bogala Graphite disclosed the transaction with Graphit Krophmuhl AG of Germany, valued at 17 million rupees and amounting to 21 percent of the firm's equity, in a stock exchange filing.
The company said the new graphite lubricant dispersion plant is to be imported from Germany by the end of the year for its graphite lubricant manufacturing project.
Bogala Graphite returned to profit in the March 2010 quarter after losses last year as sales recovered and it reduced costs by shedding staff.
The company is one of the world's few vein graphite producers and used to export around 6,000 - 6,500 tonnes of value-added graphite each year before the global recession.
The manufacture of lubricant products, which are priced higher, should also help boost profits, company officials have said.
The product is now being produced in Germany from raw material exported by Bogala Graphite.
The plan is to move the manufacture of the lubricants to Sri Lanka.
source - www.lbo.lk
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