GRI launches second phase of US$ 100 million project on new manufacturing facility in Sri Lanka
Global Rubber Industries (GRI) has reportedly commenced 2021 on a very positive note by laying the foundation stone for the second phase of a US$ 100 million project with a new manufacturing facility in Badalgama, Sri Lanka. The move is aimed at expanding its specialty tyre production capabilities to meet the growing global demand for its products.
This new factory is the next phase of GRI’s rapid expansion currently underway, including the new mixing facility and will total the overall investment to US$ 100 million, the Daily FT has reported.
In January 2018, GRI had inaugurated a world-class specialty tyre manufacturing facility with an investment of more than US$ 40 million and the new factory is an expansion of this facility and is expected to be completed by December.
GRI Managing Director Prabhash Subasinghe has noted that the new manufacturing facility is part of the company’s long-term vision and growth drive.
“GRI’s expansion and increase in our production capacity, in such a short time frame, is a result of the overwhelming demand for our GRI branded products in recent years. It has been rewarding to see how our products have been so well received in an extremely competitive market and lauded for its superlative quality, service and innovation – we are well-positioned to carve a niche for Sri Lankan specialty tyres in the world market,” Subasinghe has been quoted as saying in the local media.
GRI has been a formidable force in enhancing exports of Sri Lanka since 2002 and the company has been consistently adding new products to the country’s export range of specialty tyres while supporting the Sri Lanka Government’s efforts and vision to drive our country’s export industry to the next level over the years.
“The new manufacturing facility will be equipped with state-of-the-art machinery and is set to quadruple GRI’s current production capacity bringing it to 750,000 tyres per year and a total capacity of 100 tons per day. The new factory will focus on agriculture tyres with a large share dedicated for advanced radial agriculture tyres.
“GRI is the only manufacturer in Sri Lanka with radial agriculture manufacturing capability. We will also be increasing employment by 100% and build the GRI team to 500 factory employees through this expansion; covering production, engineering, quality assurance, advanced technology, research and development,” GRI Chief Executive Officer Dr. Mahesha Ranasoma, has said.
“The new facility will add 11,600 sq. mt. of production area that will take the main tyre plant to 22,400 sq. mt. (240,000 sq. ft.) which is equivalent to the size of three football fields. A key feature in the new production plant is that it will equip GRI with the capability to manufacture larger sized agricultural tyres.
“Our maximum tyre size now is 50 inches. We will soon be able to manufacture tyres up to 60 inches in size in the new production plant to meet growing market demand and cater to our customer requirements,” GRI Executive Director Ananda Caldera has reportedly said. “Further, the company will add 22 tyre building machines and 36 presses to its current capacity.”
The new facility is to expand GRI’s solar panel initiative spanning the entire roof and generate 2.5 MW of solar power. The factory will continue to use biomass boilers instead of furnace oil boilers while production at the facility will continue with an environmentally friendly ‘dry’ process, with no emission of gases or liquid disposal and ensuring low material wastage.
OSL take:
Companies operating in the country are continuing with their business expansion programmes as planned due to the growth potential shown by Sri Lanka’s economy. Sri Lanka’s economy has shown resilience through the years when faced with external and internal challenges. Foreign businesses/investors therefore continue to express confidence in Sri Lanka’s economy. Also, Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country have made it a business hub in the South Asian region. Foreign businesses/investors could therefore explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210120/Z_4 |