Proposed tyre manufacturing plant in Sri Lanka expected to produce 20,000 container units
The Sunday Morning: The US$ 300 million tyre manufacturing plant by Shandong Haohua Tire Co. Ltd., which will be built in two phases, has an annual production commitment of 20,000 container units. It has completed levelling work and will commence construction between the second and third quarters of this year.
Apart from the tyre manufacturing plant, the projects that are currently in construction include the US$ 58 million state-of-the-art yacht building facility by SeaHorse Yachts (Pvt.) Ltd., which will complete land levelling this April, and begin construction by mid-2022.
The US$ 15 million plug-and-play park-in-park facility by Shenzhen Xinji Group is currently at its foundation level. Once completed, it will attract light industry manufacturers and traders who would set up in Sri Lanka with a view to discover new markets in South Asia.
Hambantota International Port Group (HIPG) Chief Executive Officer (CEO) and Hambantota International Port (HIP) Speed Architect Johnson Liu said: “We have declared 2022 the ‘year of construction’ as our focus during these 12 months would be mainly on the construction of phase one of the port’s industrial park and allied sectors. It is not that construction for new projects will not continue in years to come, but we believe special emphasis is needed right now in structuring the foundations of this multi-purpose port. HIP, unlike any other port in Sri Lanka, includes an industrial park, which we will strongly push our marketing and brand positioning, to attract further investment to our park and other areas of the Hambantota District. It is our intention to position not only HIP, but also the South of Sri Lanka, as a place for light, multi-purpose, and heavy industry investments. The added advantage for investors would be the Hambantota Port, which we are positioning to be the gateway port to the hinterland.”
The three projects are expected to complete construction of their plants within their given project implementation period and HIP Speed is working as a primary factor in ensuring that the deadlines are met. The port operator, together with state organisations, is providing all support necessary to accelerate the manufacturing projects and realise their investments, so that they can contribute to the country’s export economy at the earliest opportunity.
The HIP has declared 2022 as a “year of construction”, with several ongoing projects reaching different stages of building their respective plants in the port’s industrial park. HIP is fully concentrated on getting the projects off the ground so that the first phase of the park would be up and running by the end of this year.
The port’s high speed productivity concept “HIP Speed” is playing a key role in accelerating all aspects of the three main projects that are currently under construction. The luxury yacht-building plant, the plug-and-play park-in-park facility, and the tyre manufacturing plant that broke ground at a record speed with the port’s support, brings a total value of US$ 373 million in foreign direct investment (FDI) to the country.
According to HIPG, there is an urgent need to speed up construction of these plants, as it would not only make already signed up projects a reality on the ground, but will also help in building momentum for further investment in the industrial park. The Port Investment Services Division said that this would act as a catalyst for attracting new FDI (foreign direct investment) into the country. Apart from the ongoing projects, the port has signed 40 sublease agreements both for the Hambantota Maritime Centre and the industrial park. HIP Speed, which has in its processes the ability to help investors understand the local terrain and expedite setting up operations, will provide support in obtaining approvals and cutting through red tape. The industrial park works in tandem with other operations in the port, including the establishment of a container yard, that would be vital for industries in terms of raw material imports and the export of finished domestic goods.
The HIP is promoting its industrial park to diverse industries from across the globe with a view to create an international investor community. Currently, investors from Sri Lanka, the UK, Japan, China, Singapore, and the Maldives have projects in the pipeline. The port is also paving the way for projects in different sectors such as warehousing and logistics, home appliances, energy, and value-added services.
OSL take:
Sri Lanka’s manufacturing and exports sectors have shown a steady growth despite facing the pandemic challenges. The country’s ongoing development programme and the target of becoming a business hub in the South Asian region have expanded the business/investment opportunities in Sri Lanka. The country’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions enjoyed by the country have also helped expand opportunities in Sri Lanka’s manufacturing and export sectors. As the country work towards becoming a regional hub for business/investments Sri Lanka poses a host of attractive opportunities for investments.
| Article Code : | VBS/AT/11032022/Z_2 |