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| Sunday, 29 May 2005 |
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Richard Pieris to re-manufacture radial tyres to cut down imports by Hiran H. Senewiratne Sri Lanka's pioneer tyre retrading company Richard Pieris Tyre Company Ltd (RPTCL) is exploring the possibility to expand the low cost radial tyre re-manufacturing concept in the country. The company got the patent right to re-manufacture radial tyres to cut down tyre imports to a large extent if the concept is popularised islandwide, its Managing Director Premalal Fernando said. "This will help to retain a large quantum of foreign exchange in the country," he said. Under the concept the company will utilise well used radial tyres or case in for re-manufacturing. Once it goes through the re-manufacturing process it would get a new look, which is half the price of a brand new tyre in the market, Fernando said. The company which invested Rs 80 million to set up the re-manufacturing plant in Nawinna last year is now struggling to get government approval to import used tyres for re-manufacturing. Initially the company wanted to import 60,000 tyres to promote the concept in the country and is awaiting the green light from the government, he said. He said that Sri Lanka imports more than 500,000 radial tyres annually costing approximately US $ 12 million. These tyres could be re-manufactured to brand new standards, without discarding them, he said. According to Fernando 65 per cent of the total number of vehicles in the country used radial tyres. These vehicles are involved in school, office and light delivery transportation. These tyres will be reused to suit the local road conditions, while giving customers the unlimited warranty with all attributes of a brand new tyre, he said. The company could import used tyres between US $ 3-4 dollars each while a brand new tyre will cost around US $ 15-20 to the country. The company called upon the government to lift all restrictions on importation of used tyres for the business to grow, he said. RPTCL will also arrange a sub-contract with a leading Chinese tyre manufacturer Shandong Changong Rubber Company to manufacture the tyres. The company invested over Rs 30 million in China on technological transfer to manufacture tyres suitable for Sri Lanka's roads and vehicle conditions, Fernando said. The company will introduce the tyre under the name ' Yata which will sell 100,000 tyres in all sizes in the first three years to the local market, he said. |
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