A notice to Pakistan stock exchange (PSX) on Wednesday has revealed that Sazgar Engineering works, has been allowed to install a plant for car manufacturing with the Chinese company. Sazgar is known for producing auto rickshaws.
Arshad Mahmood, secretary of Sazgar engineering works has mentioned in the report that ‘company has been awarded Category A, Greenfield investment by Ministry of Industries and Production of Pakistan’. ‘BAIC’ will be the brand name under which vehicles will be manufactured.
The share price of Sazgar has seen a rise of 4.79% and Closed at Rs.231.37. 511500 shares of the company changed hand on Wednesday at PSX.
The expansion plan for three-wheeler has been put to halt by Sazgar engineering work and it was announced earlier that company will set up a plant for Light commercial vehicles in a span of 18 months to reap the benefits of growing auto sector in Pakistan.
It was reported that the plant will be operational by 30 June 2019 and will have the production capacity of 24000 units per annum. The estimated cost of the project will be Rs.1.76 billion, this doesn’t include the value of land already owned by the company. The MOU for car manufacturing with the Chinese company was signed in May 2017 but the name of the company has yet not been disclosed.