Ceylon Oxygen Ltd, a member of The Linde Group, said last week it was investing Rs 1.3 billion (EUR 9.3 million) for the installation of a new 65 tons per day (tpd) merchant air separation unit (ASU) in Sapugaskanda.
Scheduled to come on stream in September 2012, the new ASU will be built adjacent to the company’s existing ASU. The existing ASU will be maintained to ensure reliability of supply, the company said. Ceylon Oxygen’s Chief Executive Niran Pieris said, “The new plant will be a milestone as it will produce argon and indeed it will make Sri Lanka fully self-sufficient in argon. We are delighted that we will soon be able to offer argon to the local market and potentially for export.” Ceylon Oxygen is celebrating its 75th anniversary in Sri Lanka this year.
“While our existing 24 tpd ASU is capable of meeting the country’s total oxygen requirements at present, we anticipate an expansion in demand in line with continued economic growth,” Mr Pieris said, adding that the new ASU will significantly increase production capacity and enhance the product and service offerings to existing and potential new customers in the hospital, ship-building and ship-repair, steel, glass, food and chemicals sectors.