Zardari's Japan visit successful, Yamaha to establish motorcycle plant this year: Mandviwalla

ISLAMABAD: The Yamaha Motors Company Japan would establish motorcycle plant in Karachi this year with investment of  $150 million to cater to the increasing demand of motorcycle in the  country, Chairman Board of Investment, Saleem H. Mandviwalla said.

"Although the project was in pipeline for the last one-and-a-half year, the deal to this affect was finalized during President Asif Ali Zardari's recent visit to Japan," Mandviwalla told APP while commenting on the visit.

The Board of Investment (BoI) Chairman said that during the President's visit,  both the countries agreed to further boost their trade and investment relations.

He said the government of Pakistan would fulfill all the requirements for establishing the Yehama plant which, he said would have capacity of producing 500,000 motorcycles annually.

Mandviwalla said that the 1960's technology was still in vogue  while developing motorcycles in the country adding the Yamaha plant would introduce latest technology and produce state-of-the-art motorcycles.

He said the groundbreaking of the plant would be held within next  two months adding that the plant would start production by the end of 2012 or early 2013.

He said that a Japanese company would build Karachi Circular Railway and elevated expressway from Port Qasim to Karachi while Mitsubishi Company also wanted to pour in further investments in the country adding that this company was already having five project in Pakistan.

Besides, he said, that several other companies including Toyota  have shown interest to invest in Pakistan, adding that successful meetings were also held with Japan International Cooperation Agency (JICA).

Mandviwalla said that the President during his meeting urged on the Japanese Prime Minister to provide Pakistan-specific investment credit to those Japanese companies which are interested to invest in the country.

The BoI Chairman was of the view that Pakistan and Japan were enjoying good relations however stressed the need for high level engagements to boost these relations.

He said that Pakistani mangoes, for the first time, would find space in the Japanese market where he said one mango would cost about Rs.3000.

He said that Pakistan would also take steps for attracting South Korean investments in the country and disclosed that President Zardari is scheduled to visit South Korea this year in this regard.