Indo-Lanka JV, CEAT Kelani to invest billions to expand tyre manufacturing capacity in the country
Sri Lanka’s CEAT Kelani Holdings has reportedly announced that it would invest Rs. 3 billion to expand tyre manufacturing capacity and on new product development for the domestic and export markets.
Chairman of CEAT Kelani Holdings, Chanaka de Silva has told a news conference that the Indo-Lanka joint venture will set up a new Truck Bus Radial tyre plant, double production of radials and motorcycle tyres, increase exports and expand the existing passenger car radial tyre.
“New machinery is already on the way from Europe,” de Silva has been quoted as saying at the news conference.
Production of Truck Bus Radial Tyres will start around June-July 2018.
CEAT Kelani is an example for one of the best working Indo-Lanka joint ventures. Apart from the expansion in the local tyre market, local businesses could as well as foreign businesses could look at forming partnerships in Sri Lankan business venture since the island nation is benefited with a free trade agreement (FTA) with the largest nation in the Indian Ocean region.
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