Business

Shield Restraint Systems Expands Sri Lanka Manufacturing Hub

Shield Restraint Systems Sri Lanka manufacturing facility marks a significant milestone in the country’s industrial growth, with a new USD 8.5 million investment underscoring rising foreign investor confidence and Sri Lanka’s expanding role in global safety equipment production.


Shield Restraint Systems strengthens Sri Lanka with advanced export manufacturing


Shield Restraint Systems Sri Lanka manufacturing facility was officially unveiled on December 18, 2025, at the Export Processing Zone in Wathupitiwala, Nittambuwa, reinforcing Sri Lanka’s position as a competitive destination for advanced manufacturing and export-led industrial growth. The state-of-the-art facility represents a strategic expansion by Shield Restraint Systems (Pvt) Ltd, a subsidiary of the United States–based TransDigm Group Inc., and highlights the country’s ability to attract high-value foreign direct investment despite global economic uncertainty.

The opening ceremony brought together senior executives from the United States, including Kevin McHenry, Executive Vice President of TransDigm Inc., and Dennis Pursel, President of Shield Restraint Systems. Their presence underscored the company’s long-term commitment to expanding its international manufacturing footprint and strengthening supply chains that serve global non-aviation safety markets.

Senior Sri Lankan officials also attended the event, including Board of Investment Chairman Arjuna Herath and Director General Renuka Weerakone, alongside other BOI representatives. Officials from the United States Department of Commerce and the U.S. Embassy in Sri Lanka were present as well, reflecting the deepening economic cooperation between the two nations and the role of bilateral engagement in facilitating investment flows.

Shield Restraint Systems specialises in ground-based restraint systems for non-aviation applications, supplying safety products used across diverse industries. Its parent company, TransDigm Group Inc., is a global aviation and defence manufacturing leader with revenues exceeding USD 8.6 billion. TransDigm has maintained a continuous presence in Sri Lanka for more than two decades through its subsidiary AmSafe Bridport (Pvt) Ltd, which operates within the same export processing zone. The successful performance of AmSafe Bridport laid the foundation for Shield’s latest investment decision.

The new Shield Restraint Systems Sri Lanka manufacturing facility will produce a broad portfolio of safety solutions, including restraint systems for child safety seats, commercial vehicles, construction and agricultural machinery, and amusement park rides. With existing manufacturing operations in Elkhart, Indiana, and Kunshan, China, the Sri Lanka facility marks Shield’s strategic expansion into South Asia, enhancing its ability to serve global customers efficiently.

The USD 8.5 million project comprises a modern 100,000 square-foot manufacturing complex designed to support scalable production. While operations will initially commence at approximately 10 percent capacity, the facility is projected to reach full-scale production in the coming years. Once fully operational, the plant is expected to create around 500 direct employment opportunities and generate annual revenues of approximately USD 50 million, delivering substantial economic benefits to Sri Lanka.

Beyond direct job creation, the project is expected to contribute meaningfully to government revenue through taxes, support ancillary industries, and strengthen Sri Lanka’s export manufacturing ecosystem. Industry analysts noted that investments of this scale signal confidence in the country’s macroeconomic stabilisation efforts and improving business environment.

Company representatives cited several factors that influenced the decision to expand manufacturing operations in Sri Lanka. The current geopolitical environment has encouraged manufacturers to diversify supply chains, while Sri Lanka’s established track record in precision manufacturing provided Shield with operational confidence. The long-standing success of AmSafe Bridport offered valuable insights into local capabilities, workforce quality, and regulatory processes.

Sri Lanka’s strategic location and logistics infrastructure also played a decisive role. Efficient shipping routes, access to major maritime corridors, and improving supply chain connectivity provide a competitive advantage for manufacturers serving international markets. Executives highlighted the resilience demonstrated by Sri Lankan manufacturing operations, which continued to meet quality and delivery standards even during periods of severe disruption.

Chandani Ekanayake, General Manager of AmSafe Sri Lanka, described the project as the outcome of years of engagement aimed at positioning Sri Lanka as a viable, profitable investment destination. She noted that while progress has been made, further improvements in administrative efficiency and transparency are essential to sustain investor confidence. According to Ekanayake, policy reforms focused on establishing a genuine one-stop service framework would significantly enhance Sri Lanka’s competitiveness.

She emphasised that collaboration between investors and authorities adopting pragmatic, solution-oriented approaches would be critical for unlocking the country’s full potential. Such cooperation, she said, would enable Sri Lanka to transition from an emerging manufacturing base into a globally competitive industrial hub.

Looking ahead, Shield Restraint Systems signalled that the newly opened facility represents only the first phase of its investment journey in Sri Lanka. The company is already evaluating future expansion opportunities that could exceed USD 17 million in additional investment value. These plans reflect a long-term commitment to sustainable growth, technology transfer, and community development.

As the Shield Restraint Systems Sri Lanka manufacturing facility begins operations, it stands as a strong indicator of renewed investor confidence and the country’s growing relevance in global manufacturing networks. The project not only strengthens Sri Lanka’s industrial base but also reinforces its ambition to emerge as a trusted partner for high-value international manufacturing investments.