Dipped Products moving Weliweriya factory to Biyagama zone
View(s):Dipped Products Plc, struggling to reopen its controversial factory at Weliweriya since its temporary closure in July, is investing in a new facility at the Biyagama zone.
In an announcement to the Colombo Stock Exchange (CSE) this week, the company said a decision has been made to invest in a new manufacturing facility at the Biyagama BOI Zone, where commercial operations are expected to commence from mid April 2014. “The new venture will obtain all the requisite approvals and initiate required formalities for this purpose in accordance with the applicable laws,” the company said.
The Hayleys subsidiary said that it was compelled to close down its glove manufacturing operations carried out by its subsidiary Venigros located at Weliweriya from end July 2013 due to protests from villagers.
“In spite of all efforts made by the management to resume operations, inter alia, continued opposition by a certain segment of villagers has prevented the company from doing so for the last five months,” the statement said.
The crisis stemmed from allegations from villagers that water in the area had been contaminated by effluents from the factory, a charge strongly denied by the company.