An Italian firm has sought BOI approval to set up a radial and industrial Tyre manufacturing and retreading plant in Horana area as a joint project with the Ceylon Steel Corporation.

The 100 acres of land which will be acquired through the UDA is to be allocated to Ceylon Steel Corporation on a 99-year lease for the project.

The 75 million US dollars (Rs10.87bn) worth factory is expected to produce 3 million Tyres annually and scheduled to export 75 percent of the output.

The project is expected to provide 3,700 direct and indirect employment opportunities and estimated gross turnover is 100 million Euros annually.

Cabinet approval has also been given to recover the value of the land including infrastructure cost with other services to be rendered by the government from the investor.