Ambassador Ploetner visits first German FDI in the East

Friday, 23 December 2011 01:52 - - {{hitsCtrl.values.hits}}

German Ambassador Jens Ploetner recently visited Eskimo Fashion Knitwear (Pvt) Ltd, the first German company to invest in Eastern Sri Lanka, after the three-decade-long civil conflict. Eskimo Fashions took up operations of its factory in Punnani, Eastern Sri Lanka in September this year.

Its new production plant, built with an initial investment of Rs. 120 million, is expected to create 500 to 550 employment opportunities in the Eastern Province within the next three years.

“I am happy to see that a German company has taken up the challenge to invest in the Eastern Province, which is slowly coming back to normalcy, after the conflict.” Ambassador Ploetner said, adding, “Creating economic job opportunities is the best way to help people in the East to rebuild their lives and their communities.”

The Ambassador’s visit to the factory followed last week’s productive round-table discussion between Economic Development Minister Basil Rakapaksa and a group of long standing German investors in Sri Lanka. The meeting aimed at resolving some of the bottlenecks experienced by investors.

Eskimo Fashion Knitwear (Pvt) Limited, a 100 percent German owned company started its operations in Sri Lanka in 1983. It was one of the earliest foreign investment projects launched in the island.

The company produces fashion accessories like knitted gloves, caps, scarves and headbands as well as hosiery products such as tights, leggings and socks.

The factory in Punnani is the third production site of Eskimo Fashions in Sri Lanka; with the other two located in Negombo, close to the Colombo international airport and in Pallekele, Kandy providing employment opportunities to about 2,500 people.

The company’s turnover increased by about 25 per cent to US$ 25 million in 2011.

According to Eskimo Fashion Knitwear (Lanka) Ltd. Managing Director Manik Santiapillai, the company currently plans to expand its operations in the Eastern province, as there is growing demand for its products, due to price hikes in China and an increased retail demand in Europe, creating scope for more exports from Sri Lanka.