KARACHI: Al-Futtaim Renault Pakistan, an automotive joint-venture of French and Dubai-based firms, has acquired an industrial land in Faisalabad to set up a factory for manufacturing and assembling of vehicles in the country.
“We, together with Groupe Renault, are delighted to have completed the land acquisition, which is an important milestone in the project,” a Renault’s statement quoted Colin Cordery, senior managing director of Al-Futtaim Automotive International as saying on Tuesday.
Previously, the joint-venture unveiled a plan to acquire 54 acres of land in Faisalabad after facing long delays in land acquisition in Bin Qasim Industrial Park to set up an estimated $140 million of auto plant.
The industrial plot is located at M-3 industrial city in Faisalabad, which houses the country’s largest special economic zone. “We believe this to be the optimal location for the manufacturing and assembly plant, and look forward to working with Faisalabad Industrial Estate Development and Management Company to develop a world-class and modern factory here,” Cordery said. “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 well underway, and on-site activities will commence shortly. The formal launch of the facility construction will be in Q4 2018.
Once construction work is completed, the assembly plant will have a total installed capacity of over 50,000 units per annum. The factory is expected to commence production in 2020.
Japan-based car assemblers Suzuki, Honda and Toyota dominate the auto sector, but the market dynamics are changing after the introduction of new auto policy that is encouraging new entrants. Foreign and local ventures are setting up new plants to meet the growing demand of cars in the 300,000 auto market.
Fabrice Cambolive, senior vice president of Africa, Middle-East India Region of Renault said the land acquisition in Faisalabad is an important step to bring Renault vehicles to the Pakistani customers.
“We look forward to the continuation of the constructive cooperation with Faisalabad Industrial Estate Development and Management Company and the federal, provincial and local governments in Pakistan to achieve our goal to establish Renault brand in Pakistan,” Cambolive said. Al-Futtaim Renault Pakistan project will also establish a dealership network across the country, which reflects both Al-Futtaim and Renault brand values.
Yasser Alvi, chief executive officer of the Al-Futtaim Renault Pakistan project said 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 cutting-edge and leading European technology to the Pakistani consumers through a modern distribution and dealership network with a focus on engaging customers through unique and memorable experiences and great service,” Alvi said. “We want to add value to the brand and provide Pakistani consumers with a dynamic and vibrant product offering, tailored to local needs.”
Al-Futtaim global automotive operations extend to 11 markets across the Middle East, Africa and South Asia, and Pakistan represents one of the most dynamic opportunities in these regions, in particular due to the new Automotive Development Policy, said the Renault’s statement.