The French manufacturing giant, Michelin, the second largest tyre manufacturer in the world, recently signed six supplementary agreements with the Board of Investment (BOI), worth US$ 20.94 Million, denoting a gesture of expressing confidence in expanding business in Sri Lanka amid economic challenges, and thereby, bolstering the partnership with the BOI.
The agreement signing in this regard took place at the BOI headquarters in the presence of Michelin Group, Chief Executive Officer Sri Lanka Mr. Koenraad Pringiers, BOI Chairman Dinesh Weerakkody and Director General Renuka M Weerakone.
The first expansion project worth US$ 26,000 is to undertake FRC (Friction Cord) compound cutting operation and tyre ancillary operation at the Ancillary Production Division 02 in Ja-Ela while the second project worth US$ 3.6 Mn is to obtain a warehouse facility to store raw materials at Asian Logistic Park (Pvt) Ltd.
Furthermore, the purpose of the third expansion project valued at US$ 7.25 Mn is to increase the production capacity in Kotugoda while the fourth project worth US$ 35,000 aims to construct a laboratory building as an expansion for conducting environment related monitoring and measurements. The fifth project valued at US$ 3.13 Mn is meant to obtain a warehousing facility at Export Green Field Warehouse Complex, in Kimbulapitiya and the sixth one worth US$ 6.9 Mn focuses on manufacturing Rubber Tracks at Kotugoda Tyre Division.
The globally renowned Michelin commenced operations in Sri Lanka in 2019 and since then, they have been involved in manufacturing and exporting of agricultural, industrial tyres, solid and pneumatic tyres. In addition, they engage in the import of used tyres for re- building for export, to manufacture and export of calendared tyre cords.
Michelin group is the second largest tyre manufacturer in the world and is best known for having invented the detachable tire. The group has 123 production sites in 26 countries, a commercial presence in 170 countries with 125,000 employees worldwide. In Asia, Michelin is very strong in countries like Thailand, China and India and Sri Lanka.