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SRI LANKA
3K Holdings to Expand Plant, Double Tread Capacity
With the civil war ending in the North, major Sri Lankan retreader and tread makers are looking at expanding their operations by having a presence in the Northern Province. One of the major retreaders and tread makers 3K Holdings PVT LTD is also planning to enter the Northern market by appointing franchisees. Homagama based 3K is the only company having a franchisee network in the country.
“We are looking for a franchisee in Kilinochchi, which is a central point to Jaffna and the Northern areas. We have been talking to several companies but nothing has been confirmed as yet. Our search for a suitable franchisee is on, and we hope to have one there soon,” said L S Samararatne, Joint Managing Director, 3K Holdings Pvt Ltd. 3K is also considering shifting its tread making plant to a new location in Horana by next year to double the production. “We are awaiting government approval and once approved, we will construct the building by end of this year and start production by early next year,” he added.
The company is also considering entering the tread rubber export market. With the new plant doubling the production of tread rubber, the company wants to explore the international market. “Once we build more capacity, we will focus on exports,” he said. Currently, 3K has a tread making plant at Padukka in Western Province, which started in 2006, and is about 12 km from the retreading plant, producing about 60 tonnes each month. It plans to produce 150 tonnes at the new plant. Currently, there is slowdown in the market due to the de- monetisation in India. “We have demand but it has gone down during last two months,” he complained.
3K has widespread presence in the country other than in Northern Province. The company started in 2005, and has five retread plants including two company owned shops and
three franchisees. The company owned plants in Homogama and Munaragala retread 3,000 and 750 tyres per month respectively, whilst the franchisees are Southern 3K (Weligama), SGR (Kurunegala) and Savetha Tyre Services
(K andy).
The company hopes for a market revival with the government’s announcement of
L S Samararatne, Joint Managing Director, 3K Holdings Pvt Ltd.