ISLAMABAD – As part of a partnership, the Biafo Industries Limited, a localemulsion explosive manufacturer, will make a $2.62 million equityinvestment in an associated undertaking of the Company AuxinBiafo Chemicals(Private) Limited.
AuxinBiafo is a joint venture agreement between the Biafo IndustriesLimited and Beijing Auxin Chemical Technology Limited, a subsidiary ofChina North Industries Corporation (Norinco), a fortune 500 Top Company andone of the largest manufacturers of explosives in the world.
The company (Biafo) has taken the decision in order to reap the benefits ofthe China-Pakistan Economic Corridor (CPEC).
Company Secretary at Biafo Industries, Khawaja Shariq Tanveer, in a stockfiling, said the main object of the associated undertaking, AuxinBiafo, isto manufacture and market emulsion explosives using state of the arttechnology with capability to supply ground station design, construction &operation as well as on-site mixed explosive to customers along withblasting services to the customers.
Approval of the members of the Company is being sought for making equityinvestment of up to $2.062 million in the associated undertaking AuxinBiafosubject to regulatory permission(s) where total project cost is expected tobe about $12 million, added Tanveer.
In 2015, the Biafo Industries Limited had signed a Memorandum ofUnderstanding (MoU) with Beijing Auxin Chemical Technology Limited, toestablish a joint-venture company in Pakistan for manufacturing of emulsionexplosives.
According to the MoU signed between the Biafo Industries and Beijing AuxinLimited, the latter would have 51% shares while the former would have 49%share in the company, which would cater to the CPEC related constructionwork.