Senok Automobile to set up assembly plant

The Board of Investment of Sri Lanka (BOI) will soon hand over a land in Kuliyapitiya to Senok Automobile (Pvt) Ltd to set up a Volkswagen assembly plant. The company will assemble cars manufactured by Volkswagen AG, the renowned German company.

BOI officials worked closely with the Ministry of Lands to secure this land for the assembly plant, a BOI spokesperson said.

"It will be taken over by the BOI and handed over to M/s Senok Automobile (Pvt) Ltd," he said.

The agreement was signed by Chairman, BOI, Upul Jayasuriya and President, M/s Senok Automobile (Pvt) Ltd., Noel Selvanayagam.

The company will assemble vehicles in the 1000 cc to 2000 cc category. These vehicles will be diesel-powered and include passenger cars, Sport Utility Vehicles (SUV), Multi Utility Vehicles (MUV) or commercial vehicles.

Initially, these vehicles would be marketed locally for three years and thereafter, the vehicles will be exported.

There is also a potential to export vehicles which would be petrol, electric or hybrid built without the concessions that will be given to assemble diesel vehicles. The value of the project is US$ 26.5 million of which $ 21.5 million will be invested in fixed assets within 24 months.

The BOI is keen to attract other leading automobile manufacturers into the country as the industry creates opportunities for local component manufacturers.

Volkswagen is a leading German automobile manufacturer in Wolfsburg, Germany. The company, founded in 1937, produces cars, trucks and buses. Its revenue was Euro 197 billion in 2013. It is best known for iconic models such as Beetle, Golf and Passat.