19 March 2010

German Toymaker Fehm GMBH Starts a Plant in Sri Lanka

18th March 2010, www.lankabusinessonline.com

Sri Lanka's investment promotion agency said German toymaker Fehm GMBH has started a manufacturing plant in the island's north-western Puttalam district.

A subsidiary, Toymakers Pvt Ltd, will manufacture educational toys aimed at children up to the age of five years for the export market, the Board of Investment said in a statement.

The factory at Unawaliwatta, in Madurankuliya, Puttalam, comes under the BOI’s 300 Enterprises Programme, that gives additional incentives to investors who start projects in rural, under-developed areas.

BOI approval usually gives investors tax breaks and duty-free imports of machinery and raw material.

"In the location of their factory, Toymakers, opted for one of the most 'difficult areas' where infrastructure is rudimentary and conditions less conducive for investment," the BOI statement said.

"Hence the 350 jobs that will ultimately be created by the company will be very significant for the people of Mandurankuliya."

The BOI said the global market for toys is valued at about 150 billion US dollars.

"The exponential growth in real disposable incomes of the populations of India, China and other Asian states has led to an increase in demand for toys in those countries."

The BOI said about 20 percent of the production of Mattel is sold in India. Mattel, which makes the famous Barbie doll, has annual sales of six billion dollars.

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