20 November 2020 04:41 am
Presentation of agreement by BOI Chairman Susantha Ratnayake to Shandong representative
Chairman of Shandong Haohua Wang Keqiang joining the agreement signing via video conferencing
Shandong Haohua Tire Co. Ltd, a leading Chinese tyre manufacturer, is slated to invest US$ 300 million to set up a tyre manufacturing plant in Sri Lanka to cater to the export market.
The Board of Investment of Sri Lanka (BOI) said an agreement was entered with the company to facilitate the project under the Strategic Development Act.
Exports are expected to commence within 03 years, a BOI statement said.
Shandong will manufacture semi steel radial tyres and all steel radial tyres needed for trucks, buses and passenger cars creating job opportunities for nearly 2,000 people.
Shandong’s factory will be located at a 121-acre land in the industrial park within the Hambantota International Port.
The Hambantota International Port Group (HIPG) has offered this land to Shandong as the first-ever foreign direct investment within the industrial park.
In the first phase of the project, the company is targeting an annual production of 9 million tyres to be shipped via
45,000 containers.
It’s expected that the Hambantota Port will become more productive with this establishment and thereby generate revenue while achieving the economic goal of the country.
The agreement was signed on behalf of the BOI by Susantha Ratnayake, Chairman, and Cao Mingzhang on behalf of Shandong and XuJiancun on behalf of HIPG.
The other dignitaries present at the agreement signing were Minister of Ports & shipping Rohitha Abeygunawardena, State Minister of Aviation and Export Zone Development D.V. Chanaka and State Minister of Company Estate Reforms, Tea and Rubber Estates Related Crops Cultivation and Factories Modernisation and Tea and Rubber Export Promotion, Kanaka Herath.
Prime Minister Mahinda Rajapaksa, Minister of Youth and Sports Namal Rajapaksa, Chinese Ambassador to Sri Lanka, Qi Zhenhong and Chairman of Shandong Haohua Wang Keqiang joined this occasion via online video conferencing.
Rubber sector is one of the five thrust sectors identified by BOI’s strategy to drive foreign direct investment to the country.
Presently, Sri Lanka gains US$ 1billion worth export earnings through the rubber industry, while the present government wants to increase this to US$ 2 billion by 2025.
Establishment of this project will fulfill 30 percent of the target once operations commence, the BOI said.