ECONOMYNEXT – American engineering technology group Transdigm Group has invested $8.5 million in Sri Lanka in a joint venture with locally operating AmSafe BirdPort to provide engineering solutions for global aviation services, the Board of Investment (BOI) said.
The new investment saw the launch of a new factory SHIELD in the island nation’s Western investment zone of Wathupitiwala. With the new investment SHIELD has shifted to Sri Lanka from China, BOI officials said.
The foundation stone for the factory was laid on Thursday (31) in the investment zone.
“SHIELD’s decision to shift its facility in China to establish a manufacturing facility here in Sri Lanka is a testament to the growing interest of U.S. investment in Sri Lanka,” U.S. Ambassador Julie Chung said in her remarks after the launch of SHIELD in Sri Lanka. #
“Manufacturing moves like this one, driven by customer demand to diversify supply chains, represent a great opportunity for Sri Lanka. If the new government can strengthen the investment climate, implement anti corruption measures, and strengthen business-friendly governance and transparency, there is potential for even more manufacturers to make similar moves.”
“You’ve heard the phrase: “If you build it, they will come.” I strongly believe companies will come if the investment climate is strong. And that means more jobs, prosperity, more R&D for Sri Lanka.”
Transdigm is a $6.6 billion worth U.S. company with more than 16,000 employees worldwide. Transdigm Group, a leading provider of engineering solutions for global aviation, is the parent company of AmSafe BirdPort, which operates in Sri Lanka.
AmSafe BirdPort has been already providing engineering solutions for global airlines and aircraft manufacturers such as Boeing and Airbus and is making a significant contribution to the country’s economy, its General Manager Chandani Ekanayake said.
American companies operating in China are moving to other countries due to the Section 301 tariff policy imposed by the United States on China, the BOI said in a statement.
“Due to the investment friendly environment in Sri Lanka, they have decided to bring the SHIELD manufacturing plants from China to Sri Lanka.”
With the new move, SHIELD has planned to bring 100% of its Chinese manufacturing industries to Sri Lanka.
SHIELD provides a range of accessories focused on safety in a variety of applications such as child seats, utility vehicles, commercial trucks, RVs, motor coaches, school/transit buses and construction/agricultural equipment.
The $ 8.5 million investment is expected to create 500 direct employment opportunities for Sri Lankans, the BOI said. (Colombo/October 31/2024)
This post was originally published on here
