Thursday 16 June 2016

Marangoni to set up Sri Lanka tire plant for export

ECONOMYNEXT – Marangoni, an Italy-based tyre manufacturer, is to set up a radial and industrial tire manufacturing plant in Sri Lanka with a total estimated investment of $75 million, government spokesman Media Minister Gayantha Karunatilleke said.

Sri Lanka’s Cabinet of Ministers has approved a proposal by Malik Samarawickrama, Minister of Development Strategies and International Trade, to allocate about 100 acres in Gonapola, Horana, 5km from the southern expressway, he told a news conference.

The tyre factory will have a capacity of 3 million tyres per annum, with 75 percent of production to be exported and the rest sold in the local market, according to the proposal.

The Board of Investment is to grant concessions subject to the plant exporting a minimum of 80 percent of production.

They concessions are Customs duty exemption on capital goods and raw material imports and exchange control exemptions.

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