Pak-China footwear venture wins approval

Local firm will invest Rs1b in production of non-leather footwear over five years

KARACHI:

Approval has been granted for a joint venture agreement between Pakistan and China in the footwear manufacturing industry. The joint investment deal has been finalised between Pakistani company Service Global Footwear and Chinese company Golden Star Footwear Group.

Details of the joint venture have been formally communicated by the listed Pakistani company, Service Global Footwear, to the management of the Pakistan Stock Exchange through a letter.

According to the letter, Service Global will make a long-term investment of Rs1 billion in the production of non-leather footwear. This investment will be made in phases over a period of five years. Under the joint venture, Service Global will hold a 51% stake, while the Chinese company will have a 49% share.

Under the terms of the deal, the Pakistani footwear company will lease its land and building located in Muridke for the joint venture project, while the Chinese partner company will acquire the said land and building on lease for a period of one year.

According to the letter, Service Global Footwear's building area in Muridke is 79,760 square feet, while the land area is 136,816 square feet. Through this joint venture, the transfer of China's advanced technology to Pakistan's footwear industry has been facilitated.