Earlier in March, Al-Futtaim inked a direct investment agreement worth $150 million to construct an automobile manufacturing plant in M3 Industrial Area Faisalabad, instead of Karachi. Reason being the Government of Punjab offering cheaper land to establish its plant in the province.
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Now the company has acquired the plot in Faisalabad for its ambitious project to assemble Renault vehicles in Pakistan. The M-3 Industrial City Faisalabad is rated as the largest special economic zone in Pakistan.
Colin Cordery, Senior Managing Director of Al-Futtaim Automotive International said:
“We believe this to be the optimal location for the manufacturing and assembly plant, and look forward to working with Faisalabad Industrial Estate Development & Management Company (FIEDMC) to develop a world-class factory. This project will bring significant foreign direct investment to Pakistan, and also create many direct and indirect jobs.”
The design and pre-engineering work of the project is underway, and on-site activities will commence shortly. The formal launch of construction will be in fourth quarter of 2018. Once the work is completed, the plant will have a total installed capacity of over 50,000 units per annum. Al-Futtaim and Renault expect the factory will commence production in 2020.
The next major step for Al-Futtaim Renault Pakistan project will be the setting up of a dealership network in Pakistan. According to Yasser Alvi, CEO of the Al-Futtaim Renault Pakistan:
“Renault is renowned for the safety and quality of its cars, and we want to develop exactly the same technology and know-how in Pakistan. We will bring leading European technology to the Pakistani consumer through a modern distribution and dealership network.”
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