Sri Lanka will become a regional base to recycle aircraft through a new investment by Aitken Spence Ltd that is set to commence operations at Hambantota as a joint venture with a Hong Kong-based partner within the next few months.
Aitken Spence is to sign the joint venture with Zone 600, the Hong Kong- based company involved in the recycling of aircraft with initial plans underway to dismantle and re-export retired aircraft sent for recycling. With no other prominent competitor in the region this will become a hub for the recycling of aircraft and Sri Lanka has specifically been selected since it is economically viable and the large land area available in Hambantota. In the region this will be the first of such ventures with most other facilities located in Europe, Australia, Japan, China, the US and the Netherlands.
It is learnt that the recycling of aircraft will not be carried out in Sri Lanka as this is not possible at the moment in the country. The engines will be re-exported and the landing gears and other electronic parts will be sent to the owners. Currently the company is in talks with other parties to use the fuselage and other parts of the aircraft to be converted to hotels and restaurants. However, these will take some time before this part of the operations get underway. The pilot project of about one to one-and-a-half months will only involve dismantling of the aircraft and hundred per cent re-export of the dismantled aircraft.
Subsequently, the company will involve in other plans currently under discussion like the melting of the metal parts of the aircraft for other purposes. However, this needs to be carried out with other parties, sources said. Moreover, the location of the facility would help to re-export since it is in proximity to the Hambantota Port as well. During the initial phase foreign expertise will be brought down to run the operations but Sri Lankan skilled technicians and engineers will also be employed in the running of the operations. At least three companies have agreed to send their aircraft to this facility for recycling that would be dismantled and re-exported. A company run by a Sri Lankan and based in Australia will come down to Sri Lanka to become the outsourced partner that will engage in dismantling of aircraft. This company is already involved in similar operations with airlines like Cathay Pacific. All approvals required for the initial running of the operations of the aircraft recycling facility have been obtained, according to officials, from the Central Environmental Authority (CEA) and the Atomic Energy Agency.
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