BOI inks US$ 300 mn agreement with Chinese Tyre manufacturer | Daily News

BOI inks US$ 300 mn agreement with Chinese Tyre manufacturer

BOI inks US$ 300 mn agreement with Chinese Tyre manufacturer

The Board of Investment of Sri Lanka signed an agreement with a leading Chinese Tyre manufacturer in the world, Shandong Haohua Tire Co. Ltd to set up a project to manufacture tyres for the export market.

Shandong will be established in 121 acres of land in the Industrial Park within the Hambantota International Port. The Hambantota International Port Group (HIPG) has offered this land extent to the to this Chinese giant company as their first -ever foreign direct investment within the Industrial park. In the first phase, the company is targeting an annual production of 9 million tyres to be shipped to 45,000 containers.

This significant investment will boost the rubber based manufacturing industry of the country, while creating new path ways to the export markets.

This high profile project has been qualified under the provisions of the “Strategic Development Act” with an envisaged foreign direct investment of US$ 300 million. Exports are expected to commence within three years. Presently Sri Lanka gains US$ 01 billion worth of export earnings through the Rubber industry.

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.

The inflows of the skills and the technology to the local youth through this investment will be another unique advantage for the country. Small and medium scale rubber plantation industry employees will be benefited through this new development.

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.

Shandong’s presence in Sri Lanka being a world leader in manufacturing tyres to the world shows, the growing attractiveness of Sri Lanka as a destination for investment.

The agreement was signed on behalf of the BOI by Susantha Ratnayake, Chairman and on behalf of the Company Cao Mingzhang and Xu Jiancun from Hambantota International Port Group. The other dignitaries present were Rohitha Abeygunawardena (Minister of Ports and Shipping), D. V. Chanaka (State Minister of Aviation and Export Zone Development), and Kanaka Herath (State Minister of Company Estate Reforms, Tea and Rubber Estates Related Crops Cultivation and Factories Modernization and Tea and Rubber Export Promotion).

The Prime Minister Mahinda Rajapaksa, Minister of Youth and Sports Namal Rajapaksa, Chinese Ambassador to Sri Lanka, Qi Zhenhong and the Chairman from shandong Haohua- from China, Wang Keqiang joined this occasion via online video Conferencing.