Pakistani and Chinese military-run firms today signed a joint venture agreement for setting up a truck assembly plant that is likely to start production within a year.
The National Logistics Cell and Heavy Industries Taxila (HIT) of Pakistan finalised the deal with China North Industries Corporation Limited (NORINCO). The plant will be set up at the HIT complex in Taxila, located a short distance from Islamabad.
Officials said the plant, expected to start production within a year, will initially assemble 300 Euro-compliant trucks and prime movers. Production can be scaled up in line with market demands.
The trucks will be assembled by the joint private limited company PAKNOR and sold under the brand name Power Star. Product quality will be ensured by NORINCO, which will also train personnel to assemble the trucks.
China will transfer technology and the project is expected to bring in foreign investment and build the capacity of Pakistani technicians, a military statement said.
The joint venture agreement was signed by Quarter Master General Lt Gen Sajjad Ghani, who also heads the National Logistics Cell, HIT Chairman Lt Gen Syed Wajid Hussain and NORINCO Senior Vice President Wang Lee.
Chinese Ambassador Sun Weidong, National Logistics Cell Director General Maj Gen Asghar Nawaz and senior officials attended the signing ceremony.
NORINCO has been producing defence equipment with HIT for a long time. The new plant will provide HIT an opportunity to diversify its products and the National Logistics Cell will be a major buyer of the trucks to modernise its fleet.