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Yamaha Japan may scrap plans for plant in Karachi

no_koadsheding_plz

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Yamaha Japan may scrap plans for plant in Karachi
TOKYO: Yamaha Motors Japan may cancel its 150 million dollars investment plan to set up motorcycles manufacturing unit in Pakistan due to bureaucratic hurdles, sources close to the matter told The News on Friday.

Even President Asif Ali Zardari failed to get implemented his own orders to facilitate Yamaha Motors in establishing its unit in Pakistan, sources said.

Yamaha’s plan to set up its manufacturing plant in Karachi, for local sales and exports, was delayed due to bureaucratic snags and opposition from Dawood Yamaha, the Pakistani franchise holder.

India has started talks with Yamaha to review its plan and initiate the same project in India, sources said.

Yamaha may consider Indian offer due to cold response from Pakistan, sources said.

Yamaha was waiting for a response from Pakistan for last three years, sources said. During this period Yamaha’s senior officials met with President Zardari at least twice, and President Zardari welcomed them to invest in Pakistan but the bureaucracy created hurdles for Japanese automobile giant to initiate the project in Pakistan.

Yamaha Motor President Hiroyuki Yanagi met with President Zardari during his visit to Japan in February. Yanagi requested Zardari to remove the hurdles to Yamaha Japan’s entry in Pakistan, sources reminded.

Minister of Industries Mir Hazar Khan Bijarani, Chairman Board of Investment Saleem Mandviwala, Secretary Industries, and other officials were present at the said meeting where President Zardari issued orders to all the concerned people to immediately help Yamaha start its project in Pakistan. But the situation remains unchanged even after four months, sources said.

Yanagi had told the Pakistani authorities that his company would spend $150 million for setting up a new plant at 50 acres plot in Bin Qasim near Karachi. He said Yamaha would bring advanced technology to Pakistan where initially 22,000 motorcycles of 125-150 cc, per year, would be manufactured in the factory with electronic fuel injection (EFI) engines and during the next ten years its production would reach to 750,000.

The company would also provide comprehensive training and technical education to its employees, dealers, and vendors.

Yanagi had told the Pakistani dignitaries that 45,000 people would get direct and indirect employment from the said project, sources recalled.
 

RazorMC

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The report mentions this company as one of the obstacles alongwith the bureaucracy. DYL must have seen some loss from Yamaha's direct entry into the Pakistan market.
It's bad for the country if we cannot get the benefits that Yamaha offers like training etc.
Motorcycles produced in Pakistan could also be exported since the cost of production is still pretty low.
 

Al-zakir

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please encourage and finance your own industry. Motor cycle is not a big deal. Local industry will die out competing against Japan.
 

salvage

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we already have too many local motorbike manufacturing plants...they should invest the same amount on wind turbines along the coast to produce electricity
 

salvage

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Sad news for pakistans economy we need forgien investments more than ever I can just pray

i dont think its sad...how will a motorcycle factory improve the living condition of an ordinary layman?Investment is good but in such fields which can improve the life of a common man
They should invest in power production.....maybe mitsubishi makes giant generators:agree:
 

U-571

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i dont think its sad...how will a motorcycle factory improve the living condition of an ordinary layman?Investment is good but in such fields which can improve the life of a common man
They should invest in power production.....maybe mitsubishi makes giant generators:agree:

it gets more EMPLOYMENT
 

Nothing

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i dont think its sad...how will a motorcycle factory improve the living condition of an ordinary layman?Investment is good but in such fields which can improve the life of a common man
They should invest in power production.....maybe mitsubishi makes giant generators:agree:


Why not ... did Yamaha planned to brought electricity from Japan ... or labor force from China or India or they were getting ready made factory in ship. They will generate everything in your country only

Kid your country needs foreign investment.. they will bring new technologies and fund ... and new ideas... they will create healthy competition ..
We had our fears of multinational companies back in 1990s .. but they proved wrong.. Multinational companies brought new technologies and money.. they helped us in developed small scale industries to fulfill demand of their plants ...
They trained our labor force to work with new machinery and new technology .. which eventually tapped by local companies ...

it is long process.. but definitely fruitful ...
I owned factory back in India ... and always missed some big multinational company in same field .. they do provide competition at initial stage .. but then labor trained by them and their sub contracts alway pays off ....
We can't get high tech machinery from Germany or Japan ... because we don't have money and expertise to train our work force for that.
even companies don't provide service for those machines as ..we small scale manufacturer don't provide big market for them in single year ...

But big company will do all those things which are out of scope for us...
and we will get fruit later..
In Gujarat all most all big companies owns their own power plants to fulfill their demands...

And knowing quality of Pakistani home made automobiles (No offence .. but I heard this from many may Pakistanis that their automobiles companies sucks big time.. for good car they have to Import one )... you guys need companies like Yamaha..
 

Frank Martin

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Its a bad news because these kind of investment will not only creates job opportunities but also help the local auto manufacturers to learn and mature.
 

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