The managing director was of the view that the project would bring significant foreign direct investment to Pakistan and would also create many direct and indirect jobs. PHOTO: REUTERS
The group announced on Tuesday that it would set up the manufacturing facility in the industrial city of Faisalabad, which has the largest special economic zone in the country.
"Al-Futtaim is fully committed to the Pakistani market and to this project," said Al-Futtaim Automotive International Senior Managing Director Colin Cordery. "We, together with Renault, are delighted to have completed the land acquisition, which is an important milestone in the project," he 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 and Management Company (FIEDMC) to develop a world-class and modern factory."
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The managing director was of the view that the project would bring significant foreign direct investment to Pakistan and would also create many direct and indirect jobs.
"The land acquisition in Faisalabad is an important step in our project with Al-Futtaim Automotive to bring Renault vehicles to the Pakistani customer," said Fabrice Cambolive, SVP, Chairman of Africa, Middle East and India Region of Renault.
The design and pre-engineering work on the project is under way and on-site activities will commence shortly. Formal launch of construction will be in fourth quarter of 2018.
Once construction work is completed, the state-of-the-art assembly plant will have an installed capacity of over 50,000 units per annum. Al-Futtaim and Renault expect the factory to commence production in 2020.
The next key milestone for the Al-Futtaim Renault Pakistan project will be the establishment of a dealership network across the country, which reflects both Al-Futtaim and Renault brand values.
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"Renault is renowned for the safety and quality of its cars and we want to develop exactly the same technology and know-how in Pakistan," said Al-Futtaim Renault Pakistan project CEO Yasser Alvi.
"We will bring cutting-edge and leading European technology to the Pakistani consumer through a modern distribution and dealership network with focus on engaging customers through unique and memorable experiences and great service."
Al-Futtaim and Renault signed an agreement in November last year for assembling Renault vehicles in Pakistan as both companies termed it a lucrative market for automobile manufacturers, considering the country was posting a hefty 10% year-on-year growth.
Faisalabad industrial city is fast becoming a hub for domestic as well as world-renowned manufacturing companies.
Among other developments in the auto sector, Hyundai-Nishat is currently in the process of setting up an assembly line, which is expected to roll out vehicles by late 2019.
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