Millat Tractors Limited on Thursday announced that the company had decided to explore the option of joining the upcoming joint venture between Hyundai Motor Company and Nishat Mills Limited for the production of passenger cars and light trucks.
The Board of Directors of Millat Tractors Ltd met in a meeting held today to jointly “explore the possibility of becoming a part of the joint venture consortium involved in the setting up a green filed project for assembly and sales of Hyundai Motor Company passenger and 1 ton range light commercial vehicles in Pakistan.” The information was conveyed in a notice sent to the Pakistan Stock Exchange (PSX) today.
In the first week of February, Nishat Mills announced that it would enter into a joint venture with Korean automobile giant Hyundai Motor to set up a greenfield project – completely new infrastructure – for the assembly of vehicles. Nishat Mills, which is part of the Nishat Group, is one of the largest integrated textile mills in Pakistan.
In the notice, Millat Tractors also declared a net profit of Rs1.76 billion in the first six months (Jul-Dec) of financial year 2016-17, significantly up by 242% compared with Rs515 million in the same period of previous year.
The history of Millat Tractors goes back to 1964, but its assembly plant was set up in 1967 for the production of tractors imported in semi-knocked down (SKD) condition. From the production of just 8,000 units per annum with only two main product varieties in 1992, today the company is able to produce 45,000 units with eight different main models.
After the announcement of the Auto policy 2016-21, so far a number of foreign automobile companies including Renault, Ssangyong (Dewan) and KIA have unveiled plans to set up their plants in Pakistan.