Transdigm Group invests $ 8.5 m to launch aviation safety manufacturing hub in Sri Lanka

Transdigm Group, a major US engineering technology company specialising in aviation solutions, has invested $ 8.5 million in Sri Lanka, partnering with AmSafe BirdPort to establish a new facility, SHIELD, in the Wathupitiwala Export Processing Zone (EPZ). 

This strategic partnership is expected to boost Sri Lanka’s position in the global aviation supply chain, creating new export revenue streams, whilst strengthening the economic and employment landscape.

The foundation stone for the new SHIELD factory was laid yesterday in a ceremony attended by SHIELD Chairman Dennis Pursel, Board of Investment (BOI) Chairman Arjuna Herath, BOI Director-General Renuka M. Weerakoon, AmSafe BirdPort General Manager Chandani Ekanayake, and US Ambassador to Sri Lanka Julie Chung.

The investment aims to enhance Sri Lanka’s footprint in the aviation sector, with a focus on safety and engineering solutions for global markets.

Transdigm, valued at $ 6.6 billion with over 16,000 employees globally, is the parent company of AmSafe BirdPort, a longstanding contributor to Sri Lanka’s export sector. Since 2001, AmSafe BirdPort has been operating in Sri Lanka’s export zones, providing engineering solutions for renowned aviation manufacturers like Boeing and Airbus.

Ekanayake highlighted that AmSafe BirdPort’s contributions are not only significant to Sri Lanka’s economy but also to global aviation safety, supplying essential components to the world’s leading aircraft manufacturers. 

The company has achieved four-fold growth in investment in Sri Lanka between 2012 and 2023, diversifying into engineered textile solutions, which BOI Chairman Herath noted as a notable accomplishment in both expanding export portfolios and penetrating new markets.

US Ambassador Julie Chung expressed optimism about SHIELD’s establishment in Sri Lanka, seeing it as a positive shift in American foreign direct investment from China to Sri Lanka. 

“This is a fruitful start, showing a greater inclination of US companies to invest in Sri Lanka’s economy,” she said. 

The Ambassador also pointed out that the US remains Sri Lanka’s largest export market and sees further growth in bilateral trade through continued American investment.

SHIELD, in considering options for relocating production from China, had evaluated locations in India, Mexico, and Malaysia before ultimately choosing Sri Lanka. 

It was noted that the incentives provided, and the track record of success demonstrated by AmSafe BirdPort were critical in the company’s decision to invest in Sri Lanka. 

Due to US tariffs on China under Section 301, many American firms are seeking alternative production sites, and Sri Lanka’s investment-friendly environment has made it a compelling choice.

With SHIELD’s new facility expected to relocate 100% of its manufacturing operations from China, the Sri Lankan economy stands to benefit from increased industrial activity and job creation. 

The $ 8.5 million investment will generate 500 new jobs in Sri Lanka, offering local youth the opportunity to build skills in high-tech manufacturing, ultimately helping to reverse the country’s brain drain.

SHIELD Chairman Pursel shared that the company’s production model emphasises both automation and quality. “SHIELD, a global leader in safety accessories for applications spanning child seats, commercial vehicles, construction, and agricultural equipment, manufactures over 20 million units annually,” he added. 

With rigorous ISO9001 and IATF16949 certifications, the company operates at best-in-class quality standards.

The BOI, under Chairman Herath’s leadership, is focused on attracting investments aligned with Industry 4.0 standards, emphasising eco-friendly practices and high-value job creation. 

“Our goal is to not only draw foreign direct investments but also establish industries that are sustainable, high-tech, and provide well-compensated positions for skilled Sri Lankans,” Herath stated.