Unilever signs US $ 33m agreement with BOI

Unilever Sri Lanka invests in a state-of-the-art manufacturing plant Signs USD 33 million agreement with BOI to relocate its production facilities Colombo, 21st October 2009:

Unilever Sri Lanka today signed an agreement to relocate its main manufacturing facility to Horana - a US dollar 33 million (Rs. 4 billion) investment project approved by the Board of Investment of Sri Lanka.

The manufacturing facilities at Grandpass and in some other sites including its National Distribution Centre at Lindel will move to the new location.

The new manufacturing facility will be a state-of-the-art `green' production facility, catering to local demand and may also serve as a regional sourcing hub for Unilever.

As at today, Unilever Sri Lanka has 70 years of manufacturing history in this country and produces 95% of all the products it markets in Sri Lanka.

This significant investment reflects Unilever's commitment to its presence in Sri Lanka. At a time when global organisations are consolidating production in countries that offer greater economies of scale and lower production costs, credit goes out to the local management for retaining manufacturing operations in Sri Lanka.

This will ensure that Unilever will continue to provide Sri Lankan consumers with their favourite brands while adding substantially to the nation's economy.

`By building this new production facility, we will contribute towards Sri Lanka's industrial and economic success. We will be able to remain competitive in the face of rising costs and this new location provides scope for expansion as our business grows," stated Amal Cabraal, Chairman of Unilever Sri Lanka. `The decision to choose the BoI Zone in Horana as the site for our new facility was made after rigorous assessment, in keeping with the Government's 300 Enterprise scheme designed to spread development across the country', he added.

Despite the tough economic environment and many challenges, Unilever Sri Lanka has delivered outstanding results on all fronts of the business.

The company has achieved seven consecutive years of double-digit growth and maintained its overall market dominance.