Volkswagen opens ground for factory today
The breaking ground at the highly publicized assembly plant and very backward Volkswagen will open in Kuliyapitiya today under the patronage Ranil Wickremesinghe Prime Minister.
The local partner of Volkswagen AG is SENOK Automobiles and the total investment will be US $ 26.5 million. Of these $ 21.5 million will be invested in fixed assets within 24 months, said the Board of Investment.
The company will first assemble vehicles in the 1000cc to 2000cc category and these vehicles are diesel and include passenger cars, sport utility vehicles (SUVs), multi-utility vehicles (VUMs) or commercial vehicles.
The automotive assembly agreement was signed by BoI chairman Upul Jayasuriya and chairman of SENOK Automombiles, Noel Selvanayagam, in April to 2015.
The uniqueness of the project as well as providing investor confidence in Sri Lanka and FDI will also bring the German country's advanced automotive technology and create employment opportunities for young people in the region. "
Volkswagen, the second largest automaker in the world, has been struggling since 2008 to set up a business to build cars in Sri Lanka for export, but has failed for several reasons.
Premier Wickremesinghe also earlier said that as part of the ambitious plan of the new administration to create a social market economy, is willing to discuss projects that high-paying jobs for workers and raise the levels of income-producing households .
Volkswagen emerged from the ashes of the Second World War was one of the companies that contributed to the so-called German economic miracle of the country's social market economy. The turnover of the company was 197 million euros in 2013 and is best known for the emblematic models like Beetle, Golf and Passat.
Volkswagen also announced that it will start producing cars in Kenya and Rwanda and start hail service in Kigali, while the German carmaker is developing transport payment business models for use in markets where Rival Uber has not gained ground.