US tech firm invests $ 8.5 million in Sri Lanka relocating from China
Newswire: American engineering technology group Transdigm Group has invested $8.5 million in Sri Lanka partnering with AmSafe BirdPort to establish a new facility in the Wathupitiwala Export Processing Zone (EPZ).
According to the Board of Investment of Sri Lanka (BOI), the new investment saw the launch of a new factory ‘SHIELD’ to provide engineering solutions for global aviation services.
The BOI announced that with the new investment ‘SHIELD’ has shifted to Sri Lanka from China.
The foundation stone for the new SHIELD factory was laid yesterday (31 October) in a ceremony attended by SHIELD Chairman Dennis Pursel, Board of Investment (BOI) Chairman Arjuna Herath, BOI Director-General Renuka M. Weerakoon, AmSafe BirdPort General Manager Chandani Ekanayake, and US Ambassador to Sri Lanka Julie Chung.
“Following a merger of AmSafe Commercial Products and Beam’s Seatbelts in 2013, SHIELD has become a global leader in occupant safety systems. From child car seats to commercial vehicle seat belts, SHIELD’s products are trusted worldwide for their quality and reliability. SHIELD’s decision to shift its facility in China to establish a manufacturing facility here in Sri Lanka is a testament to the growing interest of U.S. investment in Sri Lanka. The United States is already the largest export market for Sri Lanka, and it’s wonderful to see greater U.S. investment directly here, as well. We want to see even greater bilateral trade and investment expand both ways in the years to come,” US Ambassador Julie Chung said.
The US Ambassador further said manufacturing moves like this one, driven by customer demand to diversify supply chains, represent a great opportunity for Sri Lanka.
“If the new government can strengthen the investment climate, implement anti-corruption measures, and strengthen business-friendly governance and transparency, there is potential for even more manufacturers to make similar moves,” she added.
AmSafe BirdPort General Manager Chandani Ekanayake said the company has been already providing engineering solutions for global airlines and aircraft manufacturers such as Boeing and Airbus and is making a significant contribution to the country’s economy.
Transdigm is a $ 6.6 billion worth U.S. company with more than 16,000 employees worldwide. Transdigm Group, a leading provider of engineering solutions for global aviation, is the parent company of AmSafe BirdPort, which operates in Sri Lanka.
SHIELD provides a range of accessories focused on safety in a variety of applications such as child seats, utility vehicles, commercial trucks, RVs, motor coaches, school/transit buses and construction/agricultural equipment.
The BOI states the $ 8.5 million investment is expected to create 500 direct employment opportunities for Sri Lankans.
OSL take:
Apart from Sri Lanka’s geographical positioning in the Indian Ocean and the many trade agreements as well as trade concessions enjoyed by the country with many other countries, the country’s target of becoming a hub in the South Asian region along with the commitment to develop a digital economy, have opened a host of business/investment opportunities in the local ICT and digital infrastructure development industries. The Sri Lankan government has expressed the desire to transform the country into a digital economy and has stated that necessary actions to support the move would be introduced to encourage foreign direct investments (FDIs) to the country in the areas of ICT and digital infrastructure development. The growing business potential in Sri Lanka and the ICT and digital infrastructure development sectors are not lost on foreign businesses/investors who therefore are looking at setting up bases in the country. The growth and profits recorded by local businesses in the ICT and digital infrastructure development sectors are indicative of the expanding opportunities and lucrative nature of businesses in these sectors. Foreign businesses/investors could therefore confidently explore the opportunities in the ICT and digital infrastructure development sectors while also looking at forming collaborations with local businesses with the aim of further expansion of operations.
| Article Code : | VBS/AT/20241018/Z_6 |