Hyundai Motor Company and textile giant in Pakistan, Nishat Mills have signed a Memorandum of Understanding (MoU) for the establishment of car assembly plant in Pakistan.
While speaking to Reuters, the Company Secretary of Nishat Mills Khalid Chauhan stated:
“Today we have signed a memorandum of understanding between the two companies. We will set up a project for the assembly and sales of both passenger and commercial vehicles”
Also Read: Following Kia and Renault, Now Volkswagen, Fiat and Nissan Intend to Enter Pakistan Market
It is significant to declare that the deal is at the initial stages and the project will go as planned only if it is approved by the government. Khalid Chauhan added:
“The project will be subject to statutory and regulatory approval”
The company announcement sent to Pakistan Stock Exchange (PSX) expressed that Hyundai, the South Korean car makers, is looking to partner with Mian Masha’s Nishat Mills Limited to setup vehicle assembly plant in Pakistan.
The deal between the two giants in their respective fields took place after Hyundai exhibited great interest to invest in Pakistan automobile industry. As official of Nishat Mills expressed that Hyundai intended to form a car assembly plant in Pakistan in a joint venture. Hyundai has been assembling and selling cars in Pakistan in the past through Dewan group. For a long time now, the automanufacturing giant had been looking for a local partner for re-entering the Pakistani market. As a result, they inked an agreement with Pakistani textile company Nishat Mills.
Quick Read: BMW to introduce cheaper car models in Pakistan
About Hyundai and Nishat Mills
Headquartered in Seoul, Hyundai is a South Korean multinational automotive manufacturer. The company was founded in 1967 and, along with its 32.8% owned subsidiary, Kia Motors, together comprise the Hyundai Motor Group. It is the world’s fifth largest automaker based on annual vehicle sales in 2012. In 2008, Hyundai Motor (without Kia) was ranked as the eighth largest automaker. Moreover, Hyundai sold 4.4 million vehicles worldwide in 2012 and with Kia, total sales were 7.12 million.
Also Read: Indian car exports is four times size of Pakistan’s total car production
Established in 1951, Nishat Mills Limited is the flagship company of Nishat Group. It is one of the most modern, largest vertically integrated textile companies in Pakistan. The company’s total export for the year 2016 was Rs35.931 billion. In addition, the production facilities include spinning, weaving, processing, stitching and power generation.
Do you think the partnership between Hyundai and Nishat Mills will further entice automobile manufacturers like Kia, Honda, Fiat and Nissan to invest in Pakistan?
Source: Reuters / image: hyundainews.com
Leave a Reply
This site uses Akismet to reduce spam. Learn how your comment data is processed.
