Saturday, 16 July 2011

Castrol to shut Chennai plant from July 31



Castrol India Ltd, a unit of BP Plc, said it is closing its plant in Tamil Nadu. In a BSE announcement, the company cited a steep increase in its manufacturing cost per litre over the past several months. The plant would be closed from July 31 and the manufacturing activities would be phased out. 

The manufacturing plant is located at Tondiarpet in Chennai , Tamil Nadu. 

"The Tondiarpet plant is one the company's oldest plants in the country and was faced with a situation of high landed cost of base oil leading to a steep increase in its manufacturing cost per litre over the past several months. This had adversely affected the production activities in the plant," Castrol said in the announcement. 

The company has also offered a voluntary retirement scheme to its employees working in the said plant. Employees have opted to separate by availing of the benefits under the scheme. The announcement came after market close on Friday. 

Shares of Castrol India closed up 3.02% at Rs 574.30 on the BSE.

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