Transdigm Group, a prominent US-based engineering technology company specializing in aviation solutions, has invested $8.5 million in Sri Lanka to establish “SHIELD” — a new manufacturing facility within the Wathupitiwala Export Processing Zone (EPZ). In partnership with AmSafe BirdPort, a longtime player in Sri Lanka’s export market, the SHIELD factory is set to advance the nation’s global standing in the aviation supply chain while creating significant employment and economic opportunities.
Key Highlights:
- Boosting Global Aviation Supply: SHIELD’s new facility aims to position Sri Lanka as a key player in global aviation safety solutions, creating an export-focused revenue stream and bolstering local employment.
- Expansion of American FDI: US Ambassador Julie Chung welcomed SHIELD’s entry as a positive move, showcasing a growing trend of US firms opting for Sri Lanka as a production base over alternatives like China and India, amid tariff shifts and geopolitical rebalancing.
- Strategic Partnerships and Infrastructural Growth: Attendees at the foundation-laying ceremony included SHIELD Chairman Dennis Pursel, BOI Chairman Arjuna Herath, BOI Director-General Renuka M. Weerakoon, and AmSafe BirdPort’s General Manager Chandani Ekanayake. They emphasized the facility’s role in expanding Sri Lanka’s aviation sector and diversifying the country’s export portfolio.
Long-Term Economic Impact
SHIELD, a leader in safety accessories with applications across industries, will produce over 20 million units annually from the new Sri Lankan site. By transferring 100% of its production operations from China, SHIELD will add 500 jobs, offering valuable skill-building opportunities for local youth and contributing to efforts to curb Sri Lanka’s brain drain.
The partnership with AmSafe BirdPort, which has a proven record in Sri Lanka supplying major clients like Boeing and Airbus, was instrumental in SHIELD’s decision to invest locally. Since entering the Sri Lankan market in 2001, AmSafe BirdPort has seen fourfold growth and diversified into engineered textile solutions — a development BOI Chairman Herath cited as a milestone in the expansion of Sri Lanka’s export capacities.
Sri Lanka’s Competitive Edge in the Global Market
SHIELD’s entry reflects Sri Lanka’s appeal as an investment destination, supported by incentives and a strong track record of high-standard exports. Sri Lanka’s investment climate, coupled with tariffs under the US Section 301 on Chinese imports, has led American firms to seek new production hubs, favoring Sri Lanka’s eco-friendly policies and commitment to Industry 4.0 standards.
Commitment to Quality and Sustainability
With ISO9001 and IATF16949 certifications, SHIELD’s production model integrates automation and high-quality standards, ensuring products meet global benchmarks. As Sri Lanka continues to foster high-value industries, the Board of Investment remains committed to attracting foreign direct investments that align with sustainable growth and high-tech job creation, supporting Sri Lanka’s journey towards a resilient, export-oriented economy.
Shield Restraint Systems Transdigm Group
Last modified: November 2, 2024
