Transdigm Group relocates Chinese operations to Sri Lanka with US$ 8.5mn investment

Sri Lanka’s engineering and manufacturing sector is set to witness a significant boost with the Transdigm Group, a leading American aerospace company announcing the complete relocation of its Chinese operations to Sri Lanka.

The group has committed to transferring its ‘Shield’ manufacturing plants from China to Sri Lanka, starting with a fresh investment of US$ 8.5 million in partnership with the Board of Investment (BOI) to establish a new manufacturing plant in the country.

The foundation stone for the new Shield factory was ceremoniously laid this week in the Wathupitiwala Export Processing Zone (EPZ) and the new facility is expected to create 500 direct employment opportunities in Sri Lanka.

Senior officials at Transdigm stated that they had initially evaluated several countries for relocating their Chinese operations but ultimately chose Sri Lanka, citing strong support from their local subsidiary, AmSafe Bridport.

“We also considered India, Mexico, and Malaysia but decided on Sri Lanka after strong encouragement from AmSafe Bridport and their track record of success. At this time, we are moving forward with relocating 100 percent of our Chinese manufacturing to Sri Lanka” the officials stated in a BOI media release.

Transdigm, valued at US$ 6.6 billion with over 16,000 employees globally, is the parent company of AmSafe Bridport, a longstanding contributor to Sri Lanka’s export sector. Since 2001, AmSafe Bridport has operated in Sri Lanka’s export zones providing engineering solutions for global aviation manufacturers such as Boeing and Airbus. 

Over the years, the company has diversified into engineered textile solutions, experiencing fourfold growth between 2012 and 2023.

“Due to remarkable growth in Sri Lanka and new tax policies in China, Transdigm Group has decided to relocate the ‘Shield’ manufacturing plants from China to Sri Lanka” the BOI confirmed.

Shield is recognised for its advanced restraint systems used across various sectors including child safety seats, utility vehicles, commercial trucks and construction equipment. 

The brand uses state-of-the-art technology to produce over 20 million units annually, adhering to world-class quality standards in line with ISO9001 and IATF16949.