Sazgar plans new auto plant

KARACHI: Sazgar Engineering Works Limited on Wednesday announced its board has approved an investment of Rs1.76 billion to develop a four-wheeler assembly plant with a capacity of 24,000 units per annum.

“The company hopes to complete the project by June 2019 as it is already in the process of getting approvals from the concerned regulatory authorities for setting up the plant,” Sazgar said in a notice issued to Pakistan Stock Exchange (PSX).

“The approved cost does not include the value of land, which is already owned by the company.”

The company said it intends to set up a brand new car plant under the Greenfield Investment Category that has already been announced in the five-year Automotive Development Policy (ADP) 2016-21.

“Considering the potential growth and future prospects of the automobile sector in Pakistan… the board has decided to hold the expansion of auto rickshaws production facilities,” Sazgar said in the bourse filing.

It added that production of auto rickshaws would continue at the existing production facilities of the company and the growing market demand of the auto rickshaws would be met by increasing the production hours at these facilities.

In September 2016, Sazgar had announced an investment of Rs330 million to expand its auto rickshaw production capacity from 20,000 units to 30,000 units per year. The company posted a net profit of Rs108 million in fiscal year 2016, up 46 percent from Rs74 million in the previous year.

Sazgar is a premier manufacturer of CNG 4-stroke auto rickshaws (three-wheelers) and automotive wheel rims. With manufacturing facilities based in Pakistan and a Global Dealer Network, Sazgar is leading the market in Pakistan and also exporting to international markets.