Eu-Retec to invest $2.5m to expand factory

by Surekha GALAGODA

Eu-Retec (Pvt) Ltd, a leading manufacturer of Industrial solid tyres and re-moulded solid tyres will invest $ 2.5 m to expand the factory to cater to the increasing demand.

Director Eu-Retec Kalhara Hapuarachchi accepts the award

The company was a gold award winner in the Industrial sector extra large category at the NCE export awards organised by the National Chamber of Exporters (NCE) as well as a merit award winner at the CNCI "Achiever of Industrial Excellence" organised by the Ceylon National Chamber of Industries .

The General Manager of the company, Mahinda Seneviratne said that the expansion will help the company to increase capacity by 35 percent. Already we are in the process of sourcing machinery while EU-Retec expects the new products to be in the market by May next year. The project is scheduled to start this month.

The company is also planning to get 5000-7000 hectares of land on a long term lease to plant rubber in Moneragala. In the event the company gets the land they are ready to invest euro 12 m. Everything except for the land is ready and in the event the company doesn't get the land the project will shift to Cambodia or Vietnam.

The company employs around 300 while plans are afoot to increase it by about 10-15 percent with the planned expansion program.

The company was set up by two Germans in 1999 at Ja-ela. In 2001, the present owner of the company Anurath Abeyaratne bought the controlling interests of the company from the Germans and in the same year the company was relocated at Kalutara in a six acre property which previously housed the Sisil factory .

The company entered into a joint venture with Watts Industrial Tyres PLC of UK and in 2008 Abeyratne bought their shares.

In 2009, Continental Tyres of Germany, the fourth largest tyre manufacturer in the world entered into a strategic alliance with Eu-Retec to manufacture continental branded tyres as well as Eu-Retec brands such as Novum and Quantum and in 2009 Continental became the joint venture partner of Eu-Retec. This is the first time the tyres are manufactured in an outside plant not owned by Continental. The tyres manufactured by Eu-Retec are used for forklift trucks and other material handling equipment such as load carrying trucks at Seaports and Airports while non marking solid tyres are used in the pharmaceutical, food and agricultural industry and other clean room applications, said the General Manager.

The staff with the NCE awards

Eu-Retec is planning to increase production to Australasia, Asia and the Americas while we export to over 50 countries at present. He said that the entire manufacturing process is done in-house by qualified and experienced staff.

The factory has a research and development centre headed by a person who has a Doctorate in rubber technology, said Abeyaratne. The company also has a tyre testing facility as well as a mould designing centre.

Educated at Sri Sumangala Vidyalaya Panadura, Abeyaratne the Managing Director of Eu-Retec has ventured into many other businesses including packaging, manufacturing of cartons, polybags and hangers, heavy equipment as well as hydropower.

Speaking of future plans he said "My main aim is to concentrate on the renewable energy sector."