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| Sunday, 9 May 2004 |
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Bata Atha complex operational by mid-2004 : Expediting construction of leather project The United People's Freedom Alliance Government will expedite construction work of the Bata Atha leather complex at Hambantota to complete the project as soon as possible to cater to the huge export market. According to Additional Secretary, Ministry of Industry, Tourism and Investment promotion Roy Jayasinghe, Minister Anura Bandaranaike was very keen to revive the project as it would provide employment and also earn foreign exchange. The Rs 64 million UNIDO and NORAD funded project, which was to be commisioned in June 2003, came to a standstill in January the same year when environmentalists protested against the project moving ahead. The leather sector in the country has not developed compared to other Asian countries because of environmental restrictions placed on the industry. The majority of leather tanneries are small units located in and around Colombo and it is not economical for individuals to have their own affluent treatment plants. Therefore this project was launched to relocate all tanneries at one industrial complex. The initial site of the project was Kalpitiya before it was moved to Balangoda, Beruwela and finally to Hambantota. The complex equipped with a modern affluent treatment plant would accommodate 17 leather industries, which would not only tan leather but also manufacture leather products for the export market. While our country was trying to decide on a site, the entire Asian region had started developing the leather industry. They have expanded and modernised their plants and machinery and have already started exporting to markets such as the European Union which has a big demand. According to Ceylon Leather Products Ltd Chairman, Nimal Samarakkody, the project would be operational by the second half of this year and would be a model for the entire region. At present four to five industries had already started construction of their factories while there would be arould 10 factories in the initial stage of manufacturing leather. During the second stage of the project forward integration industries such as manufacturing of shoes and leather goods would shift their production facilities and start operations at the complex. This would create many employment opportunities, he added. An Irish gentleman had already agreed to purchase the by products to manufacture " dog chews" to be exported to Germany, according to sources. The leather industry is based on local raw material and is labour intensive, therefore it suits our economy as well as the policies of the new Government. Once established the complex will be managed by a company comprising officials from the Sri Lanka Association of Tanners (Pvt) Ltd, SLAT, Factory owners, Ministry of Industries, The Board of Investment and the Export Development Board. |
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