Malaysia’s DNC Asiatic Holdings Sdn Bhd, which has invested about10million Malaysian Ringgit in Sri Lanka to develop the market for its Malaysian-made Demak motorcycles, has plans to set up manufacturing facilities in the island, Malaysian-based English tabloid The Star reported last week.
Quoting the executive director Hu Ying, the report noted that the company would consider setting up a manufacturing plant in Sri Lanka once the Demak brand is firmly established with sizeable market share and annual sales of at least between 25,000-30,000 units sold in the island.
Wholly-owned subsidiary, Demak Manufacturing Lanka (Pvt) Ltd has acquired a 10-acre land, located about 20km from the international airport in Colombo, for the proposed plant project.
“Hu said the company’s Sri Lanka operations currently assembled Demak bikes from knocked-down components manufactured by DNC Asiatic’s main factory in Selangor. The company also owns a manufacturing plant in Kuching, and the two plants have a total production capacity of 120,000 units per annum,” the report noted.