2 November 2017 12:01 am
The CIC group subsidiary, Chemanex PLC, said on Tuesday it was ceasing its export business, as such operations have been deemed to be unviable.
Accordingly, the Chemanex director board has recommended winding up the operations of its flagship exports company, Cal Exports Lanka (Pvt.) Ltd and Chemanex Exports (Pvt.) Ltd.
The board has also decided to cease the operations in the retail paints business in a managed manner since “it does not have the required scale to move forward as an independent business operation”, Chemanex said in a stock exchange filing.
“Chemanex PLC will at present focus on its chemical trading business in Sri Lanka,” it added.
Meanwhile, the Chemanex board plans to implement a voluntary retirement scheme (VRS) for its staff, given the limited staffing requirement following the proposed rationalization of operations.
Chemanex intends to obtain support services from its parent for the chemical trading business, which the company believes will further reduce the cost of operations..
In addition, Chemanex said its board of directors is in the process of reviewing and formulating a plan on the company’s existing resources and assets.