By Our Special Correspondent
LAHORE: Faisalabad Industrial Estate Development and Management Company (FIEDMC) Chairman Kashif Ashfaq Friday said Li and Fung, one of the biggest Chinese buying company expressed its willingness and evinced keen interest for business collaboration and investment in multiple sectors of Pak including FIEDMC to strengthen and promote bilateral relations on sound footings.
FIEDMC Chairman Mian Kashif Ashfaq disclosed this after week long successful tour to Shanghai in China-Pakistan Vendor Summit while talking to media here today. Mian Kashif said a high profile Pakistani delegation included Ahmad Nawaz Sukhera Federal Secretary, Ministry of Commerce, Board of Investment, TDAP, FIEDMC and leading industrialists held very successful meetings with Li and Fung Chief Operating Officer Wilson Zhu and both the sides agreed to explore investment opportune ties to strengthen further mutual relations.
Mian Kashif Ashfaq said in rapidly changing world scenario especially in wake of US-China trade conflict, the Chinese government has directed its companies to set up industries in Pakistan or start Joint Ventures (JVs) to exploit world market and this is very good omen for the economy of the country. He said the good thing is that the government is taking steps to ensure that a business-friendly environment is provided to foreign investors and to improve the ease of doing business in Pakistan.
Atlas Group & DID Group Japan
to establish JVA in Pakistan
Atlas Autos (Private) Limited and DAIDO Kogyo Co. Limited (DID-Japan), assembling motorcycle chains in Pakistan under a Technical Collaboration Agreement (2017) have decided to establish a Joint Venture Company in the country for the integrated -production of motorcycle chains. According to an announcement both the groups have agreed to deepen the relationship by establishing a Joint Venture Company that provides consistent quality, cost and delivery services to motorcycle manufactures and the after-market local suppliers by starting an integrated production of motorcycle chains in Pakistan.
The venture shall commence from July this year with a capital of Rs 1.2 billion (8 million dollar/940 million JPY) with capital contribution ratio of Atlas Autos (Private) Ltd being 60 percent, Daido Kogyo Co., Ltd. 20 percent and Daido Sittipol Co., Ltd. 20 percent. It was said to mark a significant milestone in the collaboration between two Companies as it strengthens an already excellent co-operation between the two partners.
As per details of the joint venture the company proposed to be named as Atlas DID (Private) Ltd will be located at the Atlas Industrial Park, Landhi – Karachi with sales and manufacture of motorcycle chains business scope. It will start mass production from October 2019; integrated production by May 2021 with a human resource comprising 180 employees. The production capacity of venture was said to be 2 million chains (2019); 3.5 million chains (2021) and 5 million chains (2024).
Both Atlas Group and DID were mentioned to be renowned names in the manufacturing and marketing of auto products with Atlas Group being best known for manufacturing and marketing of motorcycles and cars in collaboration with Honda Motor Company, Japan. It also manufactures various hi-tech components in-house in technical collaboration with leading Japanese components manufacturers including DID. DID was cited to be a leading supplier of advanced automotive technology, systems and components for the world’s major auto-manufacturers and has operations in numerous countries around the world.