KARACHI: French automaker Renault has now decided to establish its carmanufacturing plant in Faisalabad after facing long delays in landacquisition in Karachi’s Bin Qasim Industrial Park.

Chief of Groupe Renault said that the company will get 54 acres of land inFaisalabad in a few days where a car assembling plant with a plannedinvestment of US $140 million will be established.

He added that the land is cheaper here with all the facilities readilyavailable for the industrialists.

Bin Qasim Industrial Park is located on Main National Highway underNational Industrial Parks Development & Management Company (NIP). The NIPwas established as a special initiative of the Ministry of Production.

Groupe Renault and Al-Futtaim last November announced that they had signeddefinitive agreements for the exclusive assembly and distribution ofRenault vehicles in Pakistan.

According to the deal, Groupe Renault would bring its latest products andtechnological know-how, whilst Al-Futtaim, through its new subsidiarycalled Al-Futtaim Automotive Pakistan (Private) Limited, will establish anew manufacturing and assembly plant, and exclusively distribute Renaultcars through its extensive knowledge of the market.

As per the initial agreement, the parties expected that the plant will bebuilt starting the first quarter of 2018 in Karachi as per Groupe Renaultstandards and car sales are planned to start in 2019 ramping up in 2020.