- Chinese giant Shandong Haohua to invest $ 300 m initially for a radial car and truck/bus tyre manufacturing plant for export
The first-ever foreign direct investment to the Hambantota Port industrial zone will be signed off today involving a Chinese investment worth $ 300 million initially to manufacture radial car and truck/bus tyres for export.
The Chinese company is Shandong Haohua Tire Ltd. which is one of the largest private tyre manufacturers in China with a production capacity of 20 million PCR tires and 5.5 million TBR tires annually.
Its decision to set up manufacturing facility is given high quality natural rubber availability in Sri Lanka as well as the strategic location to ship efficiently to the South Asia, Middle East and Africa. Early this year, the Company had announced to invest $ 450 million in Sri Lanka.
Given the COVID situation, the relevant Board of Investment agreements will be signed online via video conferencing with Prime Minister and Finance Minister Mahinda Rajapaksa as a witness.
The Hambantota International Port is managed by Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS), two new companies set up under a PPP between China Merchant Port Holdings (CMPort) and the Sri Lanka Ports Authority (SLPA).
Whilst the Hambantota International port has approximately 3.5 square km of vast land area, dedicated for port-related industries, an additional 50 square km of land just outside the port perimeter is the industrial zone, with ongoing investments by the Government, in utility infrastructure and highway connectivity to the area.