Sri Lanka based Lanka Harness maker to buy Japan parent
ECONOMYNEXT – Lanka Harness, a Sri Lanka based precision technology company that makes airbag sensors and seat belts, plans to buy out its parent Ito Springs of Japan.
Managing Director Rohan Pallewatte told Colombo-base Echelon business magazine, the deal will be completed this year increasing its clout in US and Europe markets.
Ito Sprints is a supplier to top Japanese firms including Toyota, Nissan and Honda.
Lanka Harness was set up in 2002, with an 8 million dollar investment by Ito Springs with 350 people making 350,000 sensors. It now makes two million, supplying firms outside Japan including Aston Martin, BMW, Fiat-Chrysler, Ford, Saab, Volkswagen and Volvo.
"I built the non-Japanese business on my own," Pallewatte was quoted as saying. "When I acquire the parent company, I can be more aggressive.
"I will have the added advantage of negotiating from Japan, home to several giants in the industry, and heading a company that has been a tier-one supplier for decades. Imagine what I could achieve."
The deal will tightly integrate the firm with the supply chain of of Japanese automakers who rely on so-called tier-one suppliers for on-time delivery. (Colombo/Feb22/2017)