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Sri Lanka tyre plant in Hambantota port by China’s Haohua

ECONOMYNEXT – China will build a 300 million US dollar tyre plant in Sri Lanka’s Hambantota port that will export nine million tyres in its first phase, the island’s investment promotion office said.

Shandong Haohua Tire Co. Ltd will be given tax benefits under a Strategic Development Act, the Board of Investment of Sri Lanka said.

The factory which will employ 2,000 workers will be in a 121 acre space in the Hambantota Port industrial zone.

The land is provided to Shandong Haohua Tire Co. Ltd by Hambantota International Port Group (HIPG), a unit of China’s CM Ports, which runs the port and its adjacent industrial zone.

The factory will start operations in three years and in the first phase nine million tyres, enough to fill 45,000 containers will be exported, the BOI said.

It will provide business to the port.

BOI Chairman Susantha Ratnayake, Cao Mingzhang from the company and Xu Jiancun from Hambantota International Port Group had signed the agreement.

Prime Minister Mahinda Rajapaksa, Minister of Youth and Sports Namal Rajapaksa, his sone, Chinese Ambassador to Sri Lanka, Qi Zhenhong and Shandong HaohuaWang Keqiang joined the signing ceremony online. (Colombo/Nov19/2020)

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  1. Exports from Sri Lanka is good. Hope Country of Origin of the tyre will be that of Sri Lanka. 90% of the 2000 work force should be Sri Lankans. Max 10% Chinese work force should not get more than 3 years Sri Lanka Extended Resident Visa and no marriage to locals to get Love and Work Visa for ever. 40% annual net profit should be deposit in Sri Lankan Good by Banks to eligible for a tax holiday. EPF, ETF, PAYE and NBT should be applied. Production Input and Output should be audited monthly by Sri Lankan Govt officers who get additional Performance Incentive US$250 per month and that too should change the teams every quarter or half yearly…

    1. I think 90% empoloyees will be from China. Sril Lankan Get the minimul benifit. Port is operated chineese. Factory belongs to chineese. They might import their rubber as well. Then the remain for us is only the environmental polution.

  2. If we think who gets more benefits and try to grumble, we may not win national investment drive . The investors seek more benefit , that is the truth . But other stakeholders also get benefits , and one to be innovative to accrue more benefits. Weeping for others benefits has no meaning . A strong government will ensure fair play between all stake holders.

  3. Projects like this, preference should be given to already established companies doing on a small scale to expand and employ locals, with the help of government interest free loans.

  4. This is a deal between two Chinese company’s. Expected benefit is only freight after 3 years. Why so much of hype? Hopefully the rubber is at least sourced locally and not imported.

  5. This is exactly what is needed for Sri Lanka and it’s people. More industries . Work for people and build up a nation of industry. Don’t worry about Chinese as long as they help to build Sri Lanka it is a two way process. The present government is moving on the right direction with the correct leadership. Make sure that, no corruption is taking place. That is up to the Leader our president.

  6. Who is going to work there Sri lankans or chinese, if it is chinese , then Sri lankans will not benefit from the Tyre Factory

    1. Its going to be 🇱🇰 people … but our people our lazy people … many 🇱🇰 dose not know that even now in many factories many foreign workers work…. because our people creat many problems ….

    2. Sri lankan people …..but if they are lazy as our golden government service people , they will be kick out and chinese or indian will work..

  7. What’s going to happen to.Loadstar ( Jinena group.) Plant in Medigama who were manufactures tyres & exports

    1. This is for export it seems. On the other hand the present players will have to get their act together and compete.

    2. They both will compete and people will get much better quality tires at much better price than today.

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