The automotive parts and accessories manufacturers are trying to meet the expected huge demand for parts after the advent of new entrants in the auto sector. However, they are not much interested in developing parts for aircraft, citing the requirement of a huge capital investment as the reason.
Despite an offer from Pakistan Aerospace Complex (PAC), the automotive parts/accessories manufacturers are reportedly unable to expand their capacity to manufacture aircraft’s’ parts in the country.
“Though the offer seems to be very lucrative and an opportunity for expanding our business, but actually, no firm or group would be able to make such a huge investment for manufacturing parts for a limited number of aircraft,” said an office bearer of Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) on terms of anonymity.
“The number of existing and underdeveloped aircraft is limited and even to meet the required types of equipment of the limited machinery, a huge investment is required. Every part needs a separate plant/unit. The idea of manufacturing parts of the aircraft by private firms sounds good, but as of now, this is not possible for us,” he said adding ‘we are already striving for meeting the expected jump in demand for auto parts following the planned arrival of new assembling/manufacturing firms in the country.”
In reply to a query, he said, the offer by PAC was discussed in various meetings of PAAPAM, but the manufacturers could not move forward to materialise the offer due to investment constraints.
It may be recalled here that the association, following the offer received in November 2016, had reportedly formed a group of companies, after consultation with defence officials to look into the issue. The group of local firms was analysing the capabilities, opportunities and challenges of the new task for local parts manufacturers. The committee was also in consultation with the concerned defence authority. PAAPAM officials had also held meetings with senior officials of Heavy Industries Taxila (HIT) and discussed how to play their role in aircraft manufacturing and maintenance.
PAAPAM members had received the offer during the defence exhibition, IDEAS 2016 held in Karachi last year where Chairman Pakistan Aerospace Complex, Air Marshal Arshad Malik, had hosted a lunch for the Pakistani engineering sector in which a large number of PAAPAM members were invited. The event was organised to commemorate the launch of Pakistan Aerospace Council as a platform for networking between Pakistani high-tech sector and its clients in Pakistan as well as the global marketplace.
Air Marshal Arshad Malik had given an overview of the excellent order book and workload of PAC Kamra and its ability to localise aircraft assemblies required in military and trainer planes produced at PAC Kamra. He said Kamra valued specialist companies from the automotive sector who could take a step further into aerospace component manufacturing.
The manufacturers were informed that there are over 2,000 aeronautics, defence and space-related companies in Europe, employing 750,000 people with a turnover of 190 billion Euros. These companies import large quantities of parts and Pakistani high-tech sector companies mentored through the CBI Export Coaching Programme are already making respectable exports to Europe.
