The Board of Investment of Sri Lanka (BOI) signed an Agreement with a leading Chinese Tyre manufacturer in the world, Shandong Haohua Tire Co. Ltd to set up a project to manufacture tires for the export market.
The Board of Investment of Sri Lanka has recently signed an agreement with Shandong Haohua Tire Co. Ltd to set up a project to manufacture truck/bus tires and passenger car tires and tires for the export market.
The plant is to be established over 121 acres of land in the Industrial Park within the Hambantota International Port. The Hambantota International Port Group (HIPG) has offered this land to Shandong Haohua 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 tires to be shipped in 45,000 containers, with exports seen starting within three years. Shandong Haohua will manufacture semi steel radial tires and all steel radial tires for trucks, buses and passenger cars. The project will create nearly 2,000 jobs.
It is hoped that the investment will strengthen Sri Lanka’s rubber-based manufacturing industry and boost exports. The project has been qualified under the provisions of the “Strategic Development Act” with an envisaged foreign direct investment of $ 300 million. Sri Lanka currently gains $ 1 billion worth of export earnings through the rubber industry.
The agreement was signed by Mr. Susantha Ratnayake, Chairman, BOI and on behalf of Shandong Haohua, Mr. Cao Mingzhang, as well as Mr. Xu Jiancun from Hambantota International Port Group. The other dignitaries present were Mr. Rohitha Abeygunawardena (Minister of Ports and Shipping); Mr. 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).
Dignitaries attending the occasion virtually, via online video conferencing, included Sri Lanka’s Prime Minister, Mr. Mahinda Rajapaksa; Minister of Youth and Sports, Mr. Namal Rajapaksa; Chinese Ambassador to Sri Lanka, Qi Zhenhong and the Chairman of Shandong Haohua, Mr. Wang Keqiang.