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5 million US dollars. The agreement between BOI and sole agent of Volkswagen agent of the Island Senok Automobile was signed on Thursday.
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The facility will be located in a 30 acre land, Kuliyapitiya, in the North Central Province, and will be completed within a period of two years. “This will send a message to other investors to open up factories in Sri Lanka,” BOI chairman Upul Jayasuriya said.
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He said from the total investment a value 21.5 million US dollars would be foreign direct investment and the balance five million dollars would be from borrowed capital.
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The plant will assemble diesel powered passenger cars, sport utility vehicles (SUVs), multi utility vehicles (MUVs) and commercial vehicles.
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The company said, initially these vehicles would be marketed locally for a period of three years and thereafter the vehicles will be exported to overseas markets.
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The company plans to employ about 200 people initially to produce 500 vehicles annually. “We are planning to train at least 2,000 people though this and these people would be able to travel outside the country and work,” Noel Selvanayagam, president of Senok Automobile said.
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This is a joke. Even Maruti and Micro cars is doing a far better job than this. To assemble 500 vehicles annually, 200 employees is even the next joke, as to assemble 2 vehicles daily, each vehicle will be assembled by 40 employees. Want to know who create these jokes to the general public ?
You are a blind joker………………
They say “initially” which means they are increasing production when they start exporting
Even Senok are not sure about exporting. The current agreement is to sell locally. Hopefully they will export one day but the issue is Volkswagen already has a full scale operation in India.
This investment is viable with 30 employees. With knock down kits, Senok gets a tax concession There will get some better margins. However we seriously lacks skilled labor for automobile industry. Anyhow this is a good move. But better not joke like this. We expect far better personality from our prime minister, not a cheap politician.
Who is the blind joker now. I am looking WV paintbooth still
after trying for months and months ……………. what a tiny drop. .
The much hyped Vokswagen investment turns out to be a Senok investment probably with the intention of going around taxes. No promise on exports either.
Investments of any kind are more than welcomed but they should not be scam operations to beat the system. If Senok can’t add 30% local value additions they shouldn’t be given tax reliefs. But then again these agreements and what not will not be seen by the general public.
Even if there are no exports, the local sales will be more affordable to people. Those who trash this shud go just over to India and see how cheap the locally assembled Toyotas, Hyundais, Suzukis …. are. how cheap all the mobile phones, televisions air conditioners microwaves washing machines etc are. simply becoz they are made in India under known brands. as for Sri lanka not having autotechnicians, one of the most coveted qualifications for migration to Auzzy is the German tech certificate. The issue is most of our qualified technicians have already gone braod becoz there were no projects like this. Go check who runs the aircraft maintenance division at emirates and Etihad in UAE. Mostly Sri lankans. half the air technicians of Oman air force and the sultan’s fleet are from Sri lanka.
This is the problem with Sinhalese – underestimate the capabilities of our own … DUH