Sri Lanka opens South East Asia’s largest tyre manufacturing factory
Sri Lanka’s President Gotabaya Rajapaksa opened Southeast Asia’s largest tyre manufacturing facility – Forentino Tyre (Pvt) Limited – in Wagawatte Export Processing Zone on Thursday (14).
According to Company Chairman Nandana Lokuwithana, the project is estimated at US$ 250 million and will help bolster the economy by revitalizing exports while creating thousands of employment opportunities.
The construction of the second phase of the facility is currently ongoing and is slated to be commissioned in March this year, the Daily News has reported.
According to Lokuwithana, the facility destined to roll in a new page in the industrial sector of the county is aimed at capitalizing the European market.
“I am excited about the project as I am confident it will serve to bolster the economy by way of boosting export revenues as well as generate many new occupational opportunities,” he has said.
Lokuwithana when asked whether the company is going for a partnership has said they are not going for a partnership right now. “We may go for a partnership. They are still under negotiations,” he has observed.
Lokuwithana who is also chairman of Ceylon Steel Corporation has been quoted as saying that the company succeeded in developing an extent of 160 acres and it is planning to purchase raw material locally for radial production.
“We also intend to source our entire requirement for rubber locally thereby empowering the rubber farmers,” he has said, adding that the country’s rubber production is only 12,000 tonnes per annum and the government is also geared to increase the quantity.
“But we may have to look at our competitors too when the manufacturing of solid tyres is concerned. We will have to follow our competitors in Sri Lanka and other bigger players in the industry,” he has said.
“The construction of the second phase of the facility is going on and is slated to be commissioned in March this year,” Lokuwithana has added.
OSL take:
The opening of South East Asia’s largest tyre manufacturing company in Sri Lanka is a clear indication of the growing business/economic potential in the country. Sri Lanka is fast becoming a business hub in the South Asian region due to its geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country. Sri Lanka’s economy has shown great resilience to external and internal challenges through the years and is already showing signs of a quick rebound following the impact of the global Covid 19 pandemic. Foreign businesses/investors could explore business/investment opportunities in Sri Lanka.
| Article Code : | VBS/AT/20210115/Z_4 |