Sri Lanka’s Industrial Asphalts enters deal with Singapore firm to tap bitumen prospects in South Asia
Industrial Asphalts (Ceylon) PLC has reportedly signed a Memorandum of Understanding (MOU) with Hiin Holdings Ltd. of Singapore (Hiin) to explore opportunities in the bitumen space in the South Asian region.
According to media reports, Hiin is East Asia’s leading asphalt and fuel supplier and logistics provider and its capabilities are enforced through a fully integrated supply chain that synergises strong business networks with a comprehensive suite of logistical capabilities that includes their fleet of asphalt and fuel tankers, in-land oil terminals, and other in-land distribution capabilities.
Meanwhile, Industrial Asphalts (Ceylon) PLC (IAC) has reportedly stated that the MOU would bring IAC and HIIN under one umbrella to study and understand the current and future business opportunities in the bitumen space encompassing Sri Lanka and the South Asian region.
“This enables the creation of the required platform to explore the possibility of establishing a joint venture Company,” IAC has stated.
In the FY21 annual Report, IAC Executive Director G. Ramanan has been quoted in the media saying, “The Company will continue to explore opportunities to take strategic positions in ventures where the projected returns reflect the company’s aspirations.”
OSL take:
Sri Lanka’s private sector has shown a steady growth even amidst the challenges posed by the global Covid 19 pandemic indicating the strength and resilience of the country’s economy. Many key economic sectors in Sri Lanka have recorded positive movements despite pandemic challenges. The country is also becoming an emerging business hub in the South Asian region supported by the country’s geographical positioning in the Indian Ocean, strong trade ties with foreign countries and the business conducive environment in the country. Foreign businesses/investors while exploring business/investment opportunities in Sri Lanka, could also look at the business potential in forming joint ventures and partnerships with local businesses.
| Article Code : | VBS/AT/20211018/Z_3 |