Several motor companies show interest:
Leading SUV makers to invest in H’tota
Indunil HEWAGE
Two of the worlds leading Sports Utility Vehicles (SUV) manufactures
are planning to establish two SUV assembling plants in the Hambantota
district. The two companies from Korea and Europe have already sought
the Board of Investments approval to acquire lands near the Ruhunu
Magampura Port for this project.
Speaking to Daily News Business, National Insurance Trust Fund, (NITF)
Chairman Senaka D Abeygoonasekera said these companies are planning to
assemble SUV’s in Hambantota and then export the vehicles to the South
East Asian countries. The reason for the investors to select Ruhunu
Magampura Port at Hambantota is a ‘free port’.
“They are planning to infuse a substantial amount of money for these
two projects, creating a large number of employment opportunities for
the youth in Hambantota. Some of the raw material needed for their
operations such as rubber bushes, rubber based raw materials, tyres and
fabric that are used to manufacture SUVs are also to be obtained from
Sri Lanka,” Abeygoonasekera said.
“In addition, they have already requested to obtain the NITF
insurance coverage for their staff, equipment, buildings and other
materials.” he said.
NITF is in the process of evaluating their machinery and buildings
and, once the evaluation process is finalized, will be providing the
required insurance coverage for them. With these two investments in the
Hambantota District, NITF is optimistic that its premiums are going to
be over Rs 200 million. Meanwhile Volkswagen too has already forwarded a
proposal to assemble vans at the Ruhunu Magampura Port Investment Zone.
They are planning to assemble vans with 8, 10 and 12 seat capacity
mainly for the local market as vans are in demand.
These Volkswagen vans also would be exported. In addition, the Micro
Car Company too has tendered to be the other player in the motor
assembly facility at the Ruhunu Magampura Port. Associated Motorways too
has expressed concern to set up a Maruti car assembly plant in the area
mainly to service the local market.
Meanwhile the Cabinet had already given the nod for an Indian, a
Singaporean and a Sri Lankan company to commence operations in the
Magampura Port. They are in the fertilizer, (Heyleys Adventis) sugar (Shree
Renuka of India) and petro chemical (Peak Energy Ltd of Singapore)
categories. They have all been given attractive incentives. The
remaining 11 investors are expected to get the Cabinet approval for
their “request for proposals” next month.
Port Authority Chairman Dr Priyath Wickrama said that they had
allocated 100 hectares for these investors in the premises and they
would invest around US $ one billion at the Port. |