ISLAMABAD: Foton JW Auto Park (Pvt.) Ltd. is formally commencing production from its automobile assembly plant on Friday, November 30, 2018, meanwhile, Prime Minister Imran Khan is expected to attend the launch event, it was learnt on Wednesday.
Official sources in Industries and Production Ministry informed Pakistan Today that Foton JW Auto Park (Pvt.) Ltd. is the first Pakistani company which had a 50/50 Joint Venture (JV) with a Chinese company in the auto sector and it is going to officially launch production from its automobile assembly plant on Friday. They said as a first for the Pakistani auto sector, technology is being transferred from China for specialised parts like engine, transmission etc, said sources.
Changsha Foton Vehicle Technology Co., Ltd President Wang Tao and JW SEZ Group President Shah Faisal Afridi on behalf of Foton JW Auto Park (Pvt.) Ltd. will attend the event and they have already requested PM Khan to attend the launch event and the premier has accepted the invite, said an official of the ministry.
The sources also told that a JV was earlier signed in December 2016 between Changsha Foton Vehicle Technology Co., Ltd and JW SEZ Group. They said initially $150 million worth investment has been made at a ratio of 50/50 by both partners. They further added that the plant is located in Lahore over 50-acre land while the current plant capacity is 30,000 units. They also said product range (Phase-I) includes light and medium commercial cargo and dump trucks, minivans and SUVs. Meanwhile, the new plant is expected to provide over 500 direct employment, said sources.
Sharing details of future plans (Phase 2 & 3) of Foton JW Auto Park JV, the sources told that the JV had plans to invest $300 million within the auto sector and expand the plant to cover 100 acres of land, enhance the plant capacity to 100,000 units per year and increase product range by start assembling buses, heavy trucks and energy vehicles. After completion of phase 2 & 3, direct employment of 3,500 is estimated, meanwhile, the company had already received greenfield status for its plant and established an assembly plant in Lahore, said sources.
The JV was established apparently owing to the regressive growth of the economy through the China-Pakistan Economic Corridor (CPEC). A dialogue was earlier held between JW SEZ and Foton that had resulted in a Joint Venture, named Foton JW Auto Park, was formed. Foton JW Auto Park has envisioned becoming the leading commercial vehicle manufacturer in Pakistan within the next 5 years.
Reportedly, Beiqi Foton Motor Co., Ltd, Foton for short, is the largest commercial vehicle manufacturer, with the widest product line up in China.
