Marangoni confirms technology transfer to Lankan tyre plant

Marangoni of Italy will transfer technology to the tyre factory being set up in Horana by Sri Lankan investor Nandana Lokuvithana, a spokesman for Rigid Tyre Corporation, the local company, said.

He said that Marangoni will not invest any money into the factory and that neither the Italian company nor Rigid Tyre had claimed so. 

Rather, Marangoni will sell its technology to Rigid Tyre on a licensing agreement. “This is a fully Sri Lankan investment,” said Sameera Tilakawardana, citing a figure of Rs 11.2 billion. He said the company will also acquire technology from Marangoni.

“The management (of Rigid) says we have received 100 acres and the foundation has been laid,” he continued. “Hopefully, we will complete the building process within one-and-a-half years.”

In June 2016, Marangoni issued a statement saying they will only be involved in the US$ 75 million dollar investment “indirectly”. They referred to a “hypothetical transfer of technology to a Sri Lanka-based investor”, Ceylon Steel Corporation. The company is owned by controversial businessman Lokuvithana.

In a subsequent statement published in September, Marangoni confirmed that it has signed a partnership agreement with Ceylon Steel Corporation to produce tyres using advanced technologies. It said it would sell equipment and know-how to the company and the new partnership agreement could lead to the development of further collaboration plans.