| GEO Business | | Pak-China to cooperate in setting up automotive industry | Updated at: 1237 PST, Tuesday, March 31, 2009
CHENGDU: An automotive assembly plant would beset up in Punjab with the help of a Chinese company at a cost of US $ 30 million.
Agreement to this effect was signed at Chinese major city, Mianyang, between Commerce and Sourcing House (CASH) a Pakistani company registered in Hong Kong and Shenzhen and Mianyang Huarui Automotive Co. Ltd.
The signing ceremony was attended by Masood Akhtar, who is the Consul General of Pakistan in Chengdu and Liu Dong, who is the Mayor of Mianyan. Chengdu is the sister city of Lahore. Mianyang Huarui Automotive Co., Ltd is a part of Brilliance Jinbei Automotive Group.
The plant will be established in an area of 51 acres. The proposed company will have the capacity to build 50,000 vehicles per annum. Both parties will hold 50 percent share of the proposed company. Based upon preliminary data gathered here, the assembled vehicles will consist of 1.5 to two ton single and dual cab trucks, Jeeps, single/dual cab pick-ups and mini-vans.
However, the final product mix and volumes will be decided in May this year after the joint visit by both companies to Pakistan for a detailed market survey.
Commerce and Sourcing House in collaboration with Board of investments in Islamabad also plans to bring a group of 20 Chinese investors to Pakistan in May 2009.
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