Yamaha Japan may scrap plans for plant in Karachi
TOKYO: Yamaha Motors Japan may cancel its 150 million dollars investment plan to set up motorcycles manufacturing unit in Pakistan due to bureaucratic hurdles, sources close to the matter told The News on Friday.
Even President Asif Ali Zardari failed to get implemented his own orders to facilitate Yamaha Motors in establishing its unit in Pakistan, sources said.
Yamaha’s plan to set up its manufacturing plant in Karachi, for local sales and exports, was delayed due to bureaucratic snags and opposition from Dawood Yamaha, the Pakistani franchise holder.
India has started talks with Yamaha to review its plan and initiate the same project in India, sources said.
Yamaha may consider Indian offer due to cold response from Pakistan, sources said.
Yamaha was waiting for a response from Pakistan for last three years, sources said. During this period Yamaha’s senior officials met with President Zardari at least twice, and President Zardari welcomed them to invest in Pakistan but the bureaucracy created hurdles for Japanese automobile giant to initiate the project in Pakistan.
Yamaha Motor President Hiroyuki Yanagi met with President Zardari during his visit to Japan in February. Yanagi requested Zardari to remove the hurdles to Yamaha Japan’s entry in Pakistan, sources reminded.
Minister of Industries Mir Hazar Khan Bijarani, Chairman Board of Investment Saleem Mandviwala, Secretary Industries, and other officials were present at the said meeting where President Zardari issued orders to all the concerned people to immediately help Yamaha start its project in Pakistan. But the situation remains unchanged even after four months, sources said.
Yanagi had told the Pakistani authorities that his company would spend $150 million for setting up a new plant at 50 acres plot in Bin Qasim near Karachi. He said Yamaha would bring advanced technology to Pakistan where initially 22,000 motorcycles of 125-150 cc, per year, would be manufactured in the factory with electronic fuel injection (EFI) engines and during the next ten years its production would reach to 750,000.
The company would also provide comprehensive training and technical education to its employees, dealers, and vendors.
Yanagi had told the Pakistani dignitaries that 45,000 people would get direct and indirect employment from the said project
, sources recalled.