China’s Haohua Tire to build US$300mn tyre plant in Hambantota port

China’s Haohua Tire to build US$300mn tyre plant in Hambantota port

Image Credits: www.Newswire.lk

China will build a 300 million US dollar tyre plant in Sri Lanka’s Hambantota port that will export nine million tyres in its first phase, the island’s investment promotion office said.
The investment is provided by Chinese firm Shandong Haohua Tire Ltd. which is one of the largest private tyre manufacturers in China with a production capacity of 20 million PCR tires and 5.5 million TBR tires annually.
The factory which will employ 2,000 workers will be in a 121 acre space in the Hambantota Port industrial zone.
The Hambantota International Port Group (HIPG) and Hambantota International Port Services (HIPS) which were set up under a PPP between China Merchant Port Holdings (CMPort) and the Sri Lanka Ports Authority (SLPA), currently manage the Hambantota International Port.
The factory will start operations in three years and in the first phase nine million tyres, enough to fill 45,000 containers will be exported, the BOI said.
The first-ever foreign direct investment to the Hambantota Port industrial zone was signed off yesterday, via video conferencing. BOI Chairman Susantha Ratnayake, Cao Mingzhang from the company and Xu Jiancun from Hambantota International Port Group had signed the agreement with the Prime Minister and Finance Minister Mahinda Rajapaksa as a witness.