China's Yata brand to build tyres for Richard Pieris company specifications
 

by Hiran H. Senewiratne

One of Sri Lanka's pioneer procured and rebuild tyre manufacturers, Richard Pieris Tyre Company Ltd (RPTCL) has signed a contract manufacturer agreement with a leading Chinese tyre company to manufacture tyres to local company specifications.

Under this contract agreement, the Chinese Company Shang Gong Shandong Ltd will supply tyres to RPTCL under the brand name of "YATA", its Managing Director Premalal Fernando said. RPTCL has invested Rs 30 million for the setting up of tyre manufacturing moulds for the Chinese company.

The company expects to import 40,000 to 50,000 tyres for this year and distribute them through their dealer network.

The company is expected to import 60,000 to 80,000 tyres for next year and 100,000 tyres in the third year from the Chinese company, he said.

He said that Chinese company would manufacture all tyres for all Sri Lankan technical specifications given by RPTCL. Shang Gong Shandong Company will manufacture all tyres in accordance to our design configurations.

The company will import commercial vehicle tyres, which has a big demand in the country now, Fernando said. Meanwhile, the company has also set up a tyre procured/rebuild factory in Polonnaruwa with an initial investment of Rs 80 million to penetrate into the North Central, East and Northern markets in the country, he said. At present the company has capacity to rebuild 8000 tyres per month. Right now single line is in operational providing employment opportunities for 54. It rebuilds more than 4000 tyres for a month, he said.

The company will go for the second rebuilding line early next year and it has planned to invest Rs 40 million. At present the company enjoys a 60 percent market share in the country which is a best way to curtail tyre imports into the country and retain foreign exchange, he said.

The company has a joint venture with the world's pioneer procured tyre producer Bandag Incorporation of USA.

The Polonnaruwa factory is the most high tech factory out of their five factories adopting US technology.