Sri lanka (Commonwealth) _ Michelin, a leading global tire manufacturer, has suggested that the Sri Lankan government create a special rubber manufacturing zone in order to increase domestic production of rubber-related goods.
Sri Lanka has a lot of potential to increase its rubber manufacturing industry as one of the top producers of natural rubber in the world, and Michelin emphasizes that the government should implement more aggressive measures to promote this expansion.
Mangala Wijesinghe, the recently appointed chairman of the Export Development Board (EDB), met with a high-level Michelin team on November 1 to discuss the suggestions.
In addition to adopting steps to broaden market access through free trade agreements, Michelin representatives emphasized that the government must enact aggressive policies to boost rubber production in Sri Lanka in order to stimulate value-added rubber products. After the high-level meeting with the delegation, the EDB stated that they also emphasized the need to create a specific rubber zone in order to manufacture various rubber goods on the island.
With an annual revenue of about $1 billion, Sri Lanka’s rubber manufacturing industry plays a significant role in the country’s economy, mostly through the export of natural rubber and goods derived from it. In September 2024, the industry ranked as the third-largest revenue provider with US$ 79.5 million in export revenue.
However, the most recent data showed a 4.1 percent loss in revenue when compared to the prior months, mostly due to a decline in the export of retreaded and pneumatic rubber tires and tubes.
On November 1, a high-profile delegation from the multinational tire manufacturer Michelin met with Mangala Wijesinghe, the recently appointed chairman of the EDB, to discuss ways to advance Sri Lanka’s rubber manufacturing industry and strengthen the positive working relationship the two organizations have had for many years.
Eric Le Corre, Corporate Vice President, Public Affairs at Michelin Headquarters in France, Koenraad Pringiers, Consultant, Public Affairs, and Nilanthi Weliwe, Head of Legal Affairs at Michelin’s local facility, represented the delegation.
The Michelin Group, the world’s second-largest tire producer, is most famous for creating the detachable tire. The company employs 125,000 people worldwide and operates 123 production facilities across 26 countries. It also maintains a commercial presence in 170 countries. In Asia, Michelin is well-known in nations like China, India, Sri Lanka, and Thailand.
The French multinational became the biggest French investor and one of the top exporters in Sri Lanka after entering the country in 2018 and starting operations in 2019 through the purchase of Camso-Loadstar. The company, which employs up to 6,000 people across the island, has been producing and selling industrial and agricultural solid tires and tracks.
For a long time, the EDB has had a close working relationship with the globally recognized firm. For five years between 2018 and 2023, the leading export promotion agency helped Michelin’s Sri Lankan company by allowing its technical staff to attend industrial workshops on tire compounding, tire technology, innovations, and research and development.
Additionally, the EDB helped the company run its factory throughout the nation’s COVID-19 pandemic. The Michelin representatives emphasized that in order to boost value-added rubber goods and gain market access through free trade agreements, the government must enact proactive policies to boost rubber production in Sri Lanka.
In order to produce various rubber goods throughout the nation, they also emphasized the need to create a specific rubber zone. With the incoming government’s expected investor-friendly policies, the EDB Chief promised that Michelin would receive all the assistance they needed to boost their exports.
Based in Clermont-Ferrand, France, Michelin is a French tire manufacturer. After Bridgestone, it is the world’s second-largest tire maker. Founded in 1889, Michelin aims to promote societal advancement and facilitate the movement of people and products. Michelin owns the tire brands BFGoodrich, Kleber, Tigar, Riken, Kormoran, and Uniroyal (in North America).
In order to satisfy the demands and goals of its customers and shareholders, Michelin is dedicated to carrying out all business operations responsibly, including providing effective solutions. This also entails operating economically while maintaining environmental stewardship.
The Michelin-producing giant, which possesses 117 plants spread across 26 countries, has thus far produced 176 million tires. Tires for Space Shuttles, aeroplanes, cars, trucks, motorbikes, and bicycles are produced by Michelin.
