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New factory in H’tota to manufacture 9 million tyres annually

The new tyre manufacturing factory to be built in a land spanning over 121 acres in Hambantota would produce 9 million tires annually during the first phase of the project, the Prime Minister’s office said.

Issuing a statement, it said the project is expected to commence within three years.

Shandong Haohuwa, a global tyre manufacturing company based in China, signed an agreement with Prime Minister Mahinda Rajapaksa yesterday to build the new tyre manufacturing factory at the Hambantota with the investment of USD 300 million.

According to the agreement, the proposed project will bring a number of economic benefits to Sri Lanka.

The project, which is a direct investment of Rs. 300 million, will directly employ 2,000 Sri Lankans.

Shandong Company has generated an opportunity to send about 300 Sri Lankans to China for job training related to this project. Accordingly, a technical exchange of information between the countries’ work forces would also take place.