Japan’s Fujitec likely to hold back Lankan investments over Lotus Tower

Breach of trust along with an attempt to revoke an agreement already been entered into for awarding a contract to provide high speed elevators and escalators to the Colombo Lotus Tower, has led a Japanese engineering company to rethink its future investment strategy in the island, Mirror Business learns.  

According to Fujitec Lanka (Pvt) Limited Director, C.P Guhashanka, his Japanese parent company, Fujitec Corporation, one of world’s leading elevator manufacturers, is now re-thinking whether to invest in their future projects lined up for Sri Lanka. 

“By the latter part of 2015, they (Fujitec Japan) were to invest Rs.1 billion in a Sri Lankan plant, that would manufacture parts and components of elevators 
and escalators. 

But with the current negative and unexpected developments surrounding Lotus Tower, they are now considering whether to invest in Sri Lanka or not,”  Guhashanka said. 

Colombo Lotus Tower, a project owned by the government of Sri Lanka through the Telecommunication Regulatory Commission (TRC), is now embroiled in a legal battle over an alleged breach of trust over the latter. 

Despite granting the contract to provide high speed elevators and escalators to the project by the Project Consultancy Unit (PCU) consisting of top level professors from the University of Moratuwa in February 2015, Fujitec Lanka (Pvt) Limited alleged that a high ranking official appointed to the TRC by the new regime, has written to them in April 2015, informing about the  company’s suspension from its services. 

According to media reports, this top official is trying to revoke the contract to offer the contract to another company, who’s offer was previously rejected as they did not comply to the technical specification and quoted a price much higher.

Fujitec has taken the matter to courts, and as a result both the District Court and High Court of Civil Appeal have issued enjoining orders to both the principal contractor, China National Electronics Import and Export Corporation and TRC till June 18, 2015.   Fujitec Lanka (Pvt) Limited is a joint venture company formed in June 2014 with Micro Holdings, owners of the Micro Cars Limited. Since the formation, they have invested over Rs.214 million to-date. 

According to Guhashanka, Fujitec Lanka (Pvt) Limited has already been pre-qualified to provide its services to major high-rise projects in Sri Lanka such as Altair Residential building and Astoria residential project.