"This old plot was no longer in our use, so the management decided to sell it because there was no reason to keep it," PSMC spokesperson.
The Pak Suzuki Motor Company (PSMC) has reportedly sold its old motorcycle assembly plant to Reckitt Benckiser Pakistan. Pak Suzuki, in its recently-published annual report for the year ended December 2012, says the company has entered into an agreement with Reckitt Benckiser Pakistan for the sale of its old motorcycle plant. The deal covers the sale of the land, building and waste water treatment plant, for a total consideration of Rs280 million.
The plant had been operational since 1986 in the SITE industrial area – one of the oldest and most congested industrial zones of Karachi.
But PSMC says that since it has shifted to a new plant at Bin Qasim, an industrial cluster outside Karachi city, there is no use for keeping the old land. “This old plot was no longer in our use, so the management decided to sell it because there was no need or reason to keep it,” a PSMC spokesperson replied to The Express Tribune through an email.
The company’s new plant in Bin Qasim has been operational since July 2011, and is located in the same vicinity of its four-wheeler assembly plant. While replying to a question, the company spokesperson said the company’s operations, logistics, administration and management is now much easier and smoother, as both plants are located in the same area. The company spokesperson declined to provide further details about the deal.
The annual production capacity of the motorcycle plant was 44,000 units but it produced only 21,312 units in fiscal 2012, slightly above 50% of total installed capacity. Motorcycle sales in 2012 have been highest for the company in the last four years. Sales have been increasing gradually since 2009 – when the company produced just 14,530 units.
Pak Suzuki is a major player in Pakistan’s four-wheeler market, with over 60% market share in the segment. However, its share in the motorcycle segment is slightly less than 2%.
Published in The Express Tribune, April 6th, 2013.
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@dhaka.. love u dhaka .. ur funny.. keep it up with your funny assumptions.. be my guest whenevr you visit Pakistan
Dhaka meant the general sentiment. Cobra commander the names you are taking are global leaders with humungous budgets and brand power. they have been in business for 200 yrs so there is no comparison with the general pakistani industry.
Some sectos are suffering and some are booming
Suzuki not sazuki and " I can go on and on". Need to proof read stuff before shooting it off.
@Dhaka: Pak Sazuki setup a new plant near Port Qasim in 2011. How come you are implying that the industry in Pakistan is near collapse? Yamaha motor corporations is setting up a 150 million plant in Karachi to produce motor bikes. Unilever delisted itself from KSE so that they can embark on a 300 million dollar expansion in the sindh region. I can go and go but I will leave it to you to do some research before making baseless assumptions.
Every industry in pakistan is in the state of total collapse neither can find any improvement of situation in near future.