Sri Lanka’s GRI completes $ 100 million Phase II of the tyre factory expansion
Global Rubber Industries (GRI) of Sri Lanka has reportedly completed Phase II of the Company’s $ 100 million production capacity upgradation investment for its specialty tyre facility in the country.
GRI CEO Dr. Mahesha Ranasoma has been quoted as saying, “As a result of this expansion, we are now able to double our current volumes and provide our customers the opportunity to grow their businesses. We are also happy to be serving Sri Lanka by creating employment opportunities through this expansion while generating much needed foreign earnings and export revenues for the country.”
The expansion is aimed at enhancing GRI’s current production capacity to 750,000 tyres per year resulting in a total capacity generation of 100 tonnes per day, which forms phase III of the expansion project, which is currently underway.
Once the total expansion programme is completed, the entire project is to include a 220,000 sq. ft. expansion.
According to reports, under Phase II, the facility’s production capacity will be increased by almost 100% from its present capacity, to provide an output of 60 tonnes per day. It is expected to support the increase in demand experienced for the company’s agriculture tyre category that was launched in 2018 across key markets primarily in the US, Europe, and Australia.
The significant ramp-up of production capacities has also been supplemented through a rigorous focus on sustainability-led production initiatives as well.
The million dollar expansion project undertaken by a local tyre manufacturer is indicative of the strength and growth of Sri Lanka’s private sector. It is also indicative of the growing business potential in the country. Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as concessions have helped the country position itself as an emerging business destination in the South Asian region. Despite facing the global pandemic challenges and the resultant economic crisis, Sri Lanka’s economy is once again showing its resilience by getting back on the path to recovery. Several key economic sectors in the country have shown a growth and recorded profits, especially in the manufacturing and exports sectors, even during challenging times. All these are indicative of the growing business potential in the country. Foreign businesses/investors could therefore confidently explore the expanding opportunities in Sri Lanka while also looking at the possibility of forming partnerships or joint ventures with local businesses.
|Article Code :||VBS/AT/25072022/X_9|