Shandong Haohua Tire Co. Ltd, a leading Chinese tyre manufacturer, is slated to invest US $ 300 million to set up a tyre manufacturing plant in Hambantota to cater to the export market,

The Board of Investment of Sri Lanka (BOI) said an agreement was entered with the company to facilitate the project under the Strategic Development Act.

Exports are expected to commence within 03 years, a BOI statement said.

Shandong will manufacture semi steel radial tyres and all steel radial tyres needed for trucks, buses and passenger cars creating job opportunities for nearly 2, 000 people.

Shandong’s factory will be located at a 121-acre land in the industrial park within the Hambantota International Port.

The Hambantota International Port Group (HIPG) has offered this land extent to Shandong as the first-ever foreign direct investment (FDI) within the industrial park.

In the first phase of the project, the company is targeting an annual production of 9 million tyres to be shipped via 45,000 containers.