Sazgar Engineering Works has been granted Category “A” Greenfield status by the Ministry of Industries & Production of Pakistan.
According to the details, the company in a notice sent to Pakistan Stock Exchange (PSX) has asserted that the authorities have approved and allowed them to build its assembly plant in the country by awarding the Greenfield status. Sazgar will be joining hands with a Chinese automotive brand to manufacture new vehicles.
The notice sent to PSX mentions that the new vehicles will be assembled and sold under “BAIC” brand name. Furthermore, while speaking to the media, the secretary of the company Mr. Arshad Mahmood said that they want to grab local market share in car segment as the demand in the said segment is rising and there is a gap in supply.
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One important thing to mention here is that the share price of the company has increased by 4.79 percent.
Sazgar last year signed a Memorandum of Understanding (MoU) with the Chinese automotive brand to build an assembly plant in the country. Furthermore, at the beginning of this year, the company decided to halt the expansion of its auto rickshaw production to start building the assembly plant in the country. Additionally, it was also decided that time that a total of 24,000 units of vehicles will be shipped on a yearly basis and the plant would be completed by June 2019. The Board of Directors of Sazgar Engineering Works had already approved the estimated cost of the project which is PKR 1.76 billion.
Sazgar is known for making auto rickshaws whose popularity has even reached to Japan as well. It is indeed great news for the local automobile industry as the entry of new automaker will surely diversify the market.
Other than Sazgar, Hyundai-Nishat and Regal automobile company have also been awarded with the Greenfield status under the 2016-21 auto policy.
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