Dubai-based conglomerate Al-Futtaim has announced the acquisition of an industrial plot of land to set up a new automotive plant to build Renault vehicles in Pakistan.
The facility will be set up at M-3 Industrial City in Faisalabad, which is Pakistan’s largest special economic zone, the company said in a statement.
“Al-Futtaim is fully committed to the Pakistani market and to this project,” said Colin Cordery, senior managing director of Al-Futtaim Automotive International.
“We, together with Groupe Renault, are delighted to have completed the land acquisition, which is an important milestone in the project."
The design and pre-engineering work of the project is well underway, and on-site activities will commence shortly.
Construction is set to start in the fourth quarter of 2018 and once completed, the assembly plant will have a total installed capacity of over 50,000 units per annum.
Al-Futtaim and Renault said they expect that the factory will commence production in 2020.
Cordery added: "We believe this to be the optimal location for the manufacturing and assembly plant, and look forward to working with Faisalabad Industrial Estate Development & Management Company (FIEDMC) to develop a world-class and modern factory here. This project will bring significant Foreign Direct Investment to Pakistan, and also create many direct and indirect jobs.”
Fabrice Cambolive, SVP, chairman of Africa, Middle-East India Region of Renault, said: “The land acquisition in Faisalabad is an important step in our project with Al-Futtaim Automotive to bring the Renault vehicles to the Pakistani customer.”
He added that the next key milestone for the Al-Futtaim Renault Pakistan project will be the establishment of a dealership network across the country.
Yasser Alvi, CEO of the Al-Futtaim Renault Pakistan project, 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's global automotive operations extend to 11 markets across the Middle East, Africa and South Asia, and Pakistan.
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