Okaya invests US$ 30m

First company to make film capacitors here:

Ruwanthi ABEYAKOON

Okaya Electric Industries, the first company to manufacture film capacitors for noise suppression and spark quenchers in Sri Lanka will invest US $ 30 million in a high technology manufacturing plant.

Chairman, Okaya Electric Industries, Ritsuo Maruyama Picture by Saliya Rupasinghe

“The strong endorsement for investment environment of Sri Lanka, the favourable conditions existing for the electronics industry and the manufacturing capability of Sri Lankan skilled workers made the company invest in the country,” Chairman, Okaya Electric Industries, Ritsuo Maruyama told a press conference yesterday.

“The company will start exports in September this year and will manufacture other products in October 2009. The high literacy rate and skilled labour motivated the company to commence operations In Sri Lanka.

Okaya commenced overseas production 30 years ago in China. The limited capacity in the China plant and the increasing demand for the products made us venture into Sri Lanka,” Maruyama added.

He said the initial investment will be in the manufacturing plant at the Katunayake Export Processing Zone providing employment for 1700 workers. “These workers are skilled and the company has already sent an initial batch for training in Japan.

The main production base will be exported to Europe and West Asia including India and Russia,” Maruyama said.

He said 40 million pieces of noise suppression and spark quenchers, which is a protective device for electrical systems and coil filters will be projected per month.

Chairman Board of Investment (BoI) Dhammika Perera said the initial investment is likely to lead to further investment in Sri Lanka in the near future to manufacture other products in the company’s range. “By 2011, Rs three billion will be invested in Sri Lanka employing 1700 locals. Okaya’s entry will strengthen the economic co-operation between Japan and Sri Lanka. Japanese investors entering Lankan market shows the faith they have in the Government and the country. Foreign Direct Investments for the last six months mounted upto US$ 425 million and it will reach US$ 850 million by the end of the year,” Perera said.

Okaya Electric Industries Company, a listed company from Japan is the global leader in manufacture of electronic components for noise suppression and surge suppression.

The parent company established in 1939 whose annual average turnover is Yen 15 billion (US$ 150 million) has manufacturing plants in Japan, China, Hongkong and Singapore and marketing offices in USA, Shanghai and Taipei.

The company will join the list of leading Japanese electronics companies who have already invested in Sri Lanka and operating successfully including FDK Japan (FDK Lanka) and Toslec (TOS Lanka) since 1990s.