ECONOMYNEXT – Rigid Tyre Corporation (Pvt) Ltd, a unit of Sri Lanka’s Ceylon Steel Group, started construction of a $75 million (Rs11.25 billion) factory that will cater to the domestic and export markets.
The foundation for the factory was laid by Prime Minister Ranil Wickremesinghe on January 05.
The factory is built on 100 acres of land in Horana, which has been taken over from private owners.
Prime Minister Wickremesinghe recalled that when he was industries minister he set up a 300-acre industrial zone in Biyagama. Eventually, around 100 factories came up in the area.
Rigid will produce tyres with technical assistance from Marangoni of Italy.
Sri Lanka has a heavily protected tyre market with motorists paying excessive prices for tyres, where India’s CEAT is the only domestic manufacturer.
The firm hopes to sell up to 75 percent of its output abroad.
The factory would generate 1,000-3,000 jobs. (Colombo/Jan06/2016)