KARACHI: Loads Limited, an auto parts maker, announced on Thursday that its wholly owned subsidiary has signed an agreement with an Australian firm to purchase an alloy wheels manufacturing plant.
The procurement of the plant will be completed within six months and the said project will be installed in Bin Qasim Industrial Park, Karachi, according to a company notice sent to the Pakistan Stock Exchange (PSX).
The notice also said that alloy wheels are not currently produced in Pakistan and are being imported by car assemblers for their high-end vehicles. Loads, one of the leading auto parts makers in Pakistan, got listed at the PSX in September 2016 and eventually raised Rs1.7 billion, an amount the company is now using for expansion of its production capacity.
The company makes radiators, exhaust systems, mufflers and sheet metal components among other parts, and its clients include more than a dozen national and multinational companies engaged in the production of motorcycles, cars and heavy vehicles. Big names like Renault, Kia, Hyundai and Volkswagen have recently announced their intention to assemble vehicles in Pakistan.
This could be a potential bonanza for companies like Loads as car sales are already growing and new players are likely to count on well-established players in the auto parts-making industry.
Published in The Express Tribune, December 15th, 2017.