CEAT Kelani Holdings (Pvt) Ltd. which produces almost half of Sri Lanka’s tyre requirements invested Rs. 600 million to establish a new factory for producing radial tyres.

This new factory is adjoining the existing CEAT Kelani manufacturing complex in Kelaniya. The company says that this would enable it to develop its tyres with the CEAT brand name for the local as well as export markets.

With production in this factory beginning from April 2014, the capacity of CEAT Kelani Holdings to produce CEAT radial tyres would increase by 70 percent, from 23,000 tyres per month to 39,000 per month.

CEAT which is the leader in Sri Lanka’s radial and commercial tyre market, produces nearly 50 percent of Sri Lanka’s tyre requirements from the second quarter of 2013-14. From the nearly 1450 metric tons of tyres produced by CEAT Kelani Holdings, some 500 metric tons are exported to markets in many countries including South Asia, the Middle East, Africa etc.