The board of directors at Lucky Cement has indicated that they plan to invest Rs 12 billion in an automobile company, Kia Motors Corporation, after investing in power sector.
Lucky Cement will help in setting up operations of Kia Motors in Pakistan through its investments. Once these investments are done, the company will be kickstarting its manufacture and/or assembly of car units locally. Kia was ranked as the most reliable car manufacturer in 2016 and is one of the top 20 most valuable car brands.
According to information disclosed to shareholders, the board of director of the leading cement producer decided to invest by way of equity in the proposed associated project.
The project is to be set up and established in Pakistan, which shall undertake the manufacturing, assembling, marketing, distribution, import and export of all types of Kia motor vehicles.
The cement producer will make an investment of Rs. 12 billion through 1.2 billion shares worth Rs 10 per share each in the automobile company.
In Pakistan, Kia Motors Corporation provided its franchise to Dewan Farooque Motors to manufacture or assembly its different models at its plants based in Karachi.
Three months back, Dewan Farooque Motors issued a statement to resume its production by October this year. The company was negotiating with KIA Motors for resuming local production of KIA range of vehicles in Pakistan.
According to plans, Dewan Farooque planned to launch passenger cars, light commercial vehicles and SUVs in collaboration with KIA Motors Korea in the years to come.
The investment of Lucky Cement in Dewan Farooque Motors or an assembly unit for Kia brands will help boost local automobile industry in Pakistan. It will also expedite the transfer of technology in Pakistan from a new country, South Korea and improve competition in the automobile industry, resulting hi-tech and affordable cars are likely to be available in future.
Earlier in 2016, Lucky Cement announced to invest Rs 200 million to establish a third plant in northern part of the country, cashing in on fast paced economic activity that will be part and parcel of China Pakistan Economic Corridor (CPEC).
The company is working to diversify its business through setting up 660 MW coal-based power plants ‘Lucky Electric Power Company Limited’ (LEPCL) in Karachi as it is the hub of industrial activities.