Starco setting up solid tyre plant in Sri Lanka

Danish firm Starco’s strategy for the years 2010 to 2014 is to grow its aftermarket business from 40 to 50 per cent of the total and to double turnover by 100 million to 200 million euros by 2014. As part of its global strategy, the company has announced the establishment of a tyre manufacturing plant in Sri Lanka. The new plant, which represents an initial capital investment of around two million euros, will specialise in the manufacture of solid rubber tyres. These will be marketed worldwide under the Starco brand name.

The plant in Sri Lanka will create 120 jobs in the local community. Starco has appointed Susantha Perera, a Sri Lankan executive with extensive experience in the tyre manufacturing industry, managing director of the new operation. In establishing the factory and its production methodology, Starco will draw upon its total group management and technology resources, not least those of UK-based plastic wheel and tyre manufacturing company Starco DML; this British operation will use its production knowledge to support the plant’s establishment in regards to equipment, planning and setting up production. Starco DML will also support the setting up of the new Sri Lankan facility with its knowledge of how to incorporate ‘lean thinking’ into production and will train local staff in this approach.

Starco views the Sri Lankan operation as a supplement to existing group manufacturing operations worldwide – handling new product lines and extending the company’s manufacturing capacity to deliver both wheels and tyres under the Starco brand name. The new facility will reportedly not duplicate the activities of existing manufacturing operations in Croatia, Switzerland, China and the UK and will not result in the relocation of products, jobs or machinery from other Starco facilities. Operations in the Sri Lanka plant are expected to commence from the first quarter of 2012.