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| Sunday, 10 November 2002 |
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Zipper manufacturer anticipates improved turnover by SUREKHA GALAGODA YKK Lanka, a zipper manufacturer, produces six million pieces a month at its production plant at the Seethawaka Industrial Park. The company is the local representative of the global giant YKK Group, which is headquartered in Japan and has over 115 companies in 60 countries. Managing Director of the company Keigo Hiramatsu said: "The entire production is exported directly or indirectly. Quality is a norm while capacity is our strength. We have made substantial progress despite the ups and downs in the economy". The company was established in Sri Lanka with an initial investment of US$ 15 million although it was present here for over 20 years through a liaison office. According to estimates, the company is expecting a turnover of US$ 7.5 million for this year while US$ 11 million is budgeted for 2005. He said that all requirements for the garment industry used to be imported earlier. During 1997-98 it became necessary to supply zippers to the Sri Lankan garment industry with a minimum lead time. "The remarkable increase in demand was also a factor that made us study the potential of setting up a manufacturing plant to cater to the garment industry and other industries which needed zippers. "Flexible service, short lead time, services that an overseas company cannot supply and quality are advantages a company gets by purchasing zippers from YKK Lanka," he said. In 1998 the company did a feasibility study to set up a plant in Sri Lanka. Board of Investment approval was obtained in 1999. Construction of the factory began in February and was completed in October 2000. The company started commercial production in January 2001. YKK Lanka's manufacturing plant at Seethawaka employs 130 people. The company is ISO certified and has the OKO TEX certificate for quality. It is also the first zipper factory in Asia to be accredited by Marks and Spencer. "We are looking forward to obtaining ISO 14000 and environment friendliness is our theme," Hiramatsu said. "We have the facility and the capacity to manufacture a variety of zippers. At the moment we concentrate on the standard items and will move into other areas at the right time," he said. The future plans of the company will depend on the government and its stability. Expressing his views on the peace process, Hiramatsu said that establishment of peace will indirectly benefit YKK Lanka as peace will result in increased investor confidence for the country. Hiramatsu said the quota-free era after 2005 when the Multi Fibre Agreement is abolished will see an initial drop in demand. "But we are confident that it will pick up because of the high technical capabilities of the industry". The group employs 34,869 in Japan as well as overseas and recorded a turnover of US$ 4.68 billion. It manufactures fastening items, architectural products and machinery among other products. |
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