New plant planned to Hambantota:
Fortune 500 car manufacturer enters Sri Lanka
Geely, the Fortune 500 Chinese automotive multinational that now owns
100% of Sweden’s Volvo and part produces the famed London’s black taxi
cabs, is entering Sri Lanka.
“We warmly welcome Geely to Sri Lanka. Geely’s entry in collaboration
with our ‘Sri Lankan pride’ Micro Cars will significantly enhance our
automotive industry’s profile but more importantly, shows that Sri Lanka
has won the confidence of the giant global automotive manufacturing
industry” said Rishad Bathiudeen, Minister of Industry and Commerce
Rishad Bathiudeen (Minister of Industry and Commerce extreme
right) inspects a model of a Geely Car gifted to him by Martin
Xiang, visiting Director of Geely, Shanghai (second from left)
as Rabin Wang (Geely Project Specialist-far left) and Dr.
Lawrence Perera (Chairman - Micro Cars Ltd, third from right)
Minister Bathiudeen announced this in the aftermath of the courtesy
call (followed by in-depth discussions) made on him by the special
investment team of Shanghai’s Geely International Corporation led by
Martin Xiang, Director of Geely, at the Ministry of Industry and
Commerce in Colombo.
The $ 23.3 billion (revenues, 2011), Geely entered the Fortune Global
500 list at 475 last July and is considered as one of China’s fastest
growing car makers, holding part ownership of famed black taxis of
London and owning 100% of Sweden’s Volvo. Geely also owns the Australian
automatic transmission supplier Drivetrain Systems International.
“We are the third largest Chinese car brand in China and seventh
ranking in overall Chinese automotive market. Apart from China, we also
have production bases in Russia, Ukraine and Egypt” revealed Martin
Xiang, Director of Geely.
“We have realized that Sri Lanka has become a key market but more
importantly, a manufacturing hub in the South Asia for car makers,
especially due to its strategic placement. We are now working towards a
Joint Venture initiative with Sri Lanka’s Micro Cars Ltd.
We want to use Sri Lanka as our production hub and to export to South
Asia and the Far East from here. We want to assemble here first and
later we want to start total manufacturing processes.
Initially we are considering an assembly line with $ 20 million in
shared investment with Micro Cars and 500 new employment in automotive
manufacturing. Our new plant is being planned in Hambantota.
We are trying to start work on making the factory from mid 2013 and
complete Phase I by end of 2014 so that we can roll-out the first car in
We also believe that we can convert and equip Sri Lankan workers with
true automotive manufacturing skills” Xiang said.
A highly pleased Dr. Lawrence Perera (Chairman, Micro Cars Ltd) said:
“Micro Cars has come a long way in Sri Lanka and now it is also a global
name which is why China’s number three Geely is joining hands with Micro
Cars as a JV to start in Hambanthota to export to South Asia and the Far
East. Phase I overall cost is approximately around $ 28 million of which
Micro Cars will be investing a minimum of $ 10 million.”