A memorandum of understanding (MoU) has been signed between two local companies who will work together in manufacturing Chinese heavy transport vehicles in Pakistan.
China-Pakistan Economic Corridor (CPEC) is a gateway towards bringing the Chinese automotive technology in the country. A ceremony was held where the two companies named Rawal Industries Equipment and Malik Group of Companies signed the agreement. The CEO of Rawal Industries Equipment Farrukh Kamal and the Chairman and CEO of Malik Group of Industries Malik Khuda Baksh were present at this occasion. The Joint Venture (JV) would help to bring the latest technology in the country thus creating a good number of job opportunities for the skilled and unskilled workers.
According to Farrukh Kamal, the company was established four years ago keeping in view the developing trade relations between the two countries on the back of the CPEC project. He revealed that the assembly plant for the heavy transport vehicles is currently being constructed at Daudkhel, Mianwali. The location of the plant has great significance as it is situated on the route of the CPEC. He further told that the assembly plant is expected to start the production by the end of 2019 which has the potential of creating nearly 5000 job opportunities initially. While briefing about the product lineup of the new venture, he said that the company is focused on producing luxury buses which hold a massive demand in Pakistan. With the promotion of tourism and increasing competition in the transport sector, buses are in high demand which would be fruitful for the company. Moreover, the company also aims to produce trucks, excavators, prime movers, tankers, earth moving machinery, etc.
The head of Malik Group of Companies also addressed the audience and expressed his views which are similar to his counterpart. He told that the core reason for his company entering the agreement is the rising demand for buses in the country. The urban areas of Sindh and the requirement of specialized buses for the proposed Bus Rapid Transit System (BRTS) in the provincial capital remains the primary source of attraction for the company. The local production of buses has become inevitable and this particular joint venture would help to a great extent. He also revealed his ongoing talks with the Sindh Transport Department in introducing the Chinese-based public transportation service in the large cities of Sindh. According to him, their assembly plant holds the capacity to produce almost 600 Sunlong buses, 5000 Shacman trucks, and nearly 10,000 Semi-trailers and tankers annually. The cost of this particular project is about the US $7-10 million.
It’s indeed a positive development in the automobile industry of Pakistan. For more related updates, stay with PakWheels.