Laugfs to Enter Solid Tyre Market

The island state of Sri Lanka, long one of the world’s major rubber producers, also holds the distinction of being the world’s largest producer and exporter of solid tyres. This sizable industry is one that Laugfs Corporation Rubber, a subsidiary of Sri Lanka’s Laugfs Holdings, intends to enjoy a share of, and the company thus is investing in a new facility for the production of solid tyres.

A 2.43 hectare site for the new operation has been owned by the company for two years, reports CEO Ananda Hadunge. The installation of equipment is expected to begin in early November, with the facility ready for commercial production in the first part of 2008. Hadunge adds that the facility will initially produce 12 tonnes of tyres per day, with this capacity increasing to 25 tonnes within six months.

Export markets have been viewed as a priority from the onset, and the CEO apparently has his eye on the USA, Canada and Western Europe as key target markets for the new plant’s products. According to Hadunge, Laugfs Holdings is reportedly also planning to invest in a solid tyre production facility in Australia that will produce tyres for industrial and construction vehicles. The CEO did not elaborate further regarding this project, however.