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