Al-Futtaim to restructure AMW operation in response to impact of crisis in SL

Monday, 14 November 2022 01:47 - - {{hitsCtrl.values.hits}}

Company looks to ensure future sustainability by restructuring business across the country

AMW, a wholly owned company of UAE-headquartered Al-Futtaim Group, has announced that it has begun the process of identifying locations to close across Sri Lanka.

The company provides some of the world’s most-recognized automotive brands, services, and mobility solutions to customers.

In a statement the company said the restructuring of AMW is in direct response to Sri Lanka’s current economic situation and the challenges that high inflation, vehicle import bans and high interest rates place on the automotive sector.

Over the coming weeks, the company will select which locations to close, with the closures taking place over the next few months.

It will maintain its owned facilities and businesses across the country including its brand partnerships with Nissan, Suzuki, Yamaha, Renault and New Holland.

AMW Group Managing Director Peter Mackenzie said: “As a family business, people are our most important asset, and we have a responsibility to focus on decisions that protect our people and partners for the long term.”

“While these decisions are always difficult, we are confident that these are the changes we need to make to ensure business longevity. This is a strategic decision for us to consolidate our business and focus on our strengths,” he said.

“We are committed to ensuring AMW remains operational, continuing to work with its principals and maintain the highest level of customer service. We recognise and appreciate the service our employees across AMW have provided and their willingness to evolve as we enter this challenging period,” Mackenzie added.

AMW employees have been informed of the resizing by management and AMW has committed to offering the highest level of support to all employees during these challenging times. In recognition of their valued contribution, the company will be offering assistance for re-employment, well-being and financial support.

A pioneer in the country’s tyre re-treading industry, AMW was set up in 1949. AMW’s core business sectors are Tyre Re-treading, Automotive sales and after-sales services, lubricants, batteries and tyres and financial services (Leasing, Hire Purchase) which are carried out by the following companies - Associated Motorways Ltd., Associated Autoways Ltd. – Tyre re-treading; Associated Property Development Ltd., AMW Capital Leasing and Finance PLC., Associated Motor (Lanka) Ltd.

In July 2008, Associated Motorways Ltd. came under the management expertise of Al-Futtaim Engineering (AFE), a wholly owned subsidiary of Al-Futtaim group, thereby aligning itself with the Group Automotive Division’s development strategy and the global strategy. A large conglomerate in the UAE and a multinational group, the Al-Futtaim group is an integrated commercial, industrial and services organization with diversified interests in automotive, electronics, insurance, services, real estate, retail and overseas.