Japanese Group to build US$ 7.5 million Packaging Plant in Sri Lanka
The Board of Investment reported that Japan’s Sugano Packing Materials Co., Ltd., is setting up a Sri Lankan plant to manufacture flexible packaging to be used in part by tea exporters. The packaging generated at the Ja-Ela plant north of Colombo would be predominantly flat bottomed bags, said a declaration.
Asia-Pacific has become the world’s leading e-commerce retail packaging market. This opens up fresh opportunities for the packaging industry in Sri Lanka — especially our packaging sectors that seek to enter global markets.
Sugano, who is going to import a big pouching machine to make the bags, is going to spend US$ 7.5 million in the plant, the investment promotion agency said. Sugano currently handles the entire sequence of production of multiple film packaging from planning, designing, printing, laminating, slitting, and bag making to the sales management of products from the packaging industry.
Employing over 195 Japanese people with a capital of 58 million yen, the business provides products in the Kansai area for over 1,200 companies. These products include food, pet food, electricity, equipment, fiber, daily necessities, fishing tackles, automotive products, and industry related to general retail.
According to Morgan Philips, the packaging industry in the Asia-Pacific region “continues to enjoy powerful development throughout Central & East Asia, South East Asia & Oceania, with volumes anticipated to increase by 5% over 2014-2018.” The worldwide retail e-commerce packaging industry is also increasing at a much quicker rate, at 5.9 percent, according to Reuters.
OSL Take:
The agreement signed by the Japan-based Company to invest in Sri Lanka is indicative of the continuous business/investment potential in the country’s manufacturing industry. Foreign businesses/investors could confidently explore business/investment opportunities in Sri Lanka’s tourism industry. Investing at present would enable these companies receive the benefits of the relief packages as well as other incentives offered to the tourism industry by the government of Sri Lanka.
| Article Code : | VBS/AT/02102019/Z_T3 |