Dec 19, Colombo: After months of closure due to the dispute over ground water pollution Sri Lanka's troubled glove manufacturer Dipped Products has decided to relocate its factory to a manufacturing zone.
The company said in a stock market disclosure Thursday said that the Board of Directors has made a decision to invest in a new manufacturing facility at the Biyagama Board of Investment (BOI) Zone.
The company's troubles began when it was compelled to close down its glove manufacturing operations carried out by its subsidiary Venigros located at Weliweriya from end of July 2013 following the allegations and protests by the residents that the effluents from the factory had contaminated the ground water.
"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 5 months," Dipped Products said in the statement to the Colombo Stock Exchange.
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.
Dipped Products expected to commence operations at the new facility from mid April 2014.