Transdigm Group has made an $8.5 million investment to establish a manufacturing hub for aviation safety in Sri Lanka
2 weeks ago
Transdigm Group has made an $8.5 million investment to establish a manufacturing hub for aviation safety in Sri Lanka
Transdigm Group, a prominent U.S. engineering technology firm specializing in aviation solutions, has announced an $8.5 million investment in Sri Lanka through a partnership with AmSafe BirdPort to launch a new manufacturing facility named SHIELD in the Wathupitiwala Export Processing Zone (EPZ).
This collaboration is set to enhance Sri Lanka’s role in the global aviation supply chain, generating new export revenue and bolstering the economy and job market.
The foundation stone for the SHIELD facility was ceremonially laid yesterday, with notable attendees including SHIELD Chairman Dennis Pursel, Board of Investment (BOI) Chairman Arjuna Herath, BOI Director-General Renuka M. Weerakoon, AmSafe BirdPort General Manager Chandani Ekanayake, and U.S. Ambassador to Sri Lanka Julie Chung.
The investment aims to expand Sri Lanka’s presence in the aviation industry, focusing on safety and engineering solutions for international markets. Transdigm, valued at $6.6 billion and employing over 16,000 people globally, oversees AmSafe BirdPort, which has been a key player in Sri Lanka’s export sector since 2001, providing engineering solutions for major aviation manufacturers like Boeing and Airbus.
Ekanayake emphasized the significant impact of AmSafe BirdPort on both the Sri Lankan economy and global aviation safety, highlighting the company's provision of essential components to leading aircraft manufacturers. The company has seen a fourfold increase in investment in Sri Lanka from 2012 to 2023, diversifying into engineered textile solutions. This growth was acknowledged by BOI Chairman Herath as a notable achievement in expanding export capabilities and accessing new markets.
Ambassador Chung expressed enthusiasm for the establishment of SHIELD, viewing it as a positive shift in American foreign direct investment towards Sri Lanka. “This marks a promising beginning, indicating a growing interest among U.S. companies to invest in Sri Lanka’s economy,” she stated. The U.S. remains Sri Lanka’s largest export market, with potential for further growth in bilateral trade fueled by continued American investment.
SHIELD considered various locations for relocating production from China, including India, Mexico, and Malaysia, before choosing Sri Lanka, largely due to the incentives offered and AmSafe BirdPort's successful track record. As American firms seek alternative production sites in response to U.S. tariffs on China under Section 301, Sri Lanka's investment-friendly environment has emerged as a compelling option.
The new facility is expected to transition 100% of its manufacturing operations from China to Sri Lanka, contributing to increased industrial activity and job creation in the country. The $8.5 million investment is anticipated to create 500 new jobs, providing local youth with opportunities to acquire skills in high-tech manufacturing and helping to address the issue of brain drain.
Chairman Pursel highlighted SHIELD’s production model, which prioritizes automation and quality. “SHIELD is a global leader in safety accessories for various applications, producing over 20 million units annually,” he noted, emphasizing the company’s adherence to stringent ISO9001 and IATF16949 quality standards.
Under the guidance of Chairman Herath, the BOI is dedicated to attracting investments aligned with Industry 4.0 principles, focusing on eco-friendly practices and high-value job creation. “Our objective is not just to attract foreign direct investment but to cultivate sustainable, high-tech industries that offer well-compensated positions for skilled Sri Lankans,” he affirmed.
Source: DailyFT