Sri Lanka investment only “indirectly” involves Marangoni

Wednesday 13th July 2016 | 0 Comments

 

Last month, a number of publications in Sri Lanka shared news that the Marangoni Group would invest US$75 million to boost its production capacity for industrial tyres within the country. The Italian firm has commented on these reports and clarified that the investment in question only involves Marangoni indirectly.

“The news in fact does not refer to the industrial tyre segment, but rather to a hypothetical transfer of technology to a Sri Lanka-based investor – Ceylon Steel Corporation – discussed as part of a possible joint venture in the passenger car tyre sector,” writes Marangoni in a statement. Marangoni ceased producing passenger car tyres in Europe in 2014, and has since entered negotiations to sell its production plants to the Ceylon Steel Corporation.

Marangoni opened its own industrial tyre manufacturing facilities in Sri Lanka in 2008 in order to supplement the no longer sufficient production capacity at its Rovereto site in Italy. The start of production in Sri Lanka has also allowed the company to exploit the possibility to enter and supply its products to new international markets.

“The Sri Lanka plant was designed and built using the most advanced technology. This means that Marangoni not only has one of the most modern industrial tyre production facilities in the country, but also the possibility to rapidly adapt production capacity to demand, in a sector that is growing strongly,” shares the Italian manufacturer. The production portfolio in Sri Lanka includes the Eltor Evo, a solid forklift tyre range currently benefitting from production expansion measures. “This is a top-of-the-range product in the industrial tyre segment and stands out in particular for its low rolling resistance, low heat production and very high hourly performance,” comments Marangoni.

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Category: Company News, International News