CEAT Kelani commissions modern radial plant

A new hi-tech production facility for radial tyres for passenger cars and Sports Utility Vehicles (SUVs) was opened last week at CEAT Kelani Holdings.

Economic Development Minister Basil Rajapaksa was the chief guest. Transport Minister Kumara Welgama and several other Ministers were also present.

Since 2009, the CEAT-Kelani joint venture has invested Rs. 2.5 billion to enhance capacity, modernise its factory and set up the new radial plant.

Seamlessly integrated within the CEAT Kelani manufacturing complex at Kelaniya, the new radial tyre production facility enables the company to augment its radial tyre building and curing capacity by 70 percent to 450,000 tyres a year, thereby substituting more than 60 percent of the country's imports in this category.

Besides contributing to a substantial saving in foreign exchange, the new plant would also cater to CEAT Kelani's exports of radial tyres from Sri Lanka.

CEAT Kelani, Chairman Chanaka de Silva said the post-terrorism economic resurgence of Sri Lanka has provided companies with a fresh incentive to grow and CEAT Kelani has supported this process tangibly, by investing in capacity expansion and enhancing the range and quality of products.

Managing Director and CEO, CEAT Kelani Holdings, N. C. Venugopal said that the new technology acquisitions will enable the company to produce a new grade of high-performance radials in all sizes for high end cars.

Of CEAT Kelani's total monthly production of 1,450 tons, about 500 tons or a third is exported to markets in South Asia, the Middle East, the African continent and many other countries.