Khawaja Group of Industries has launched a Rs 1.6 billion project of state-of-the-art float glass project, the first ever project in the developing world and Pakistan.
In this connection a signing ceremony of a 10 million dollars credit facility was held here in a local hotel.
The facility was signed by Khawaja Mehboob Illahi, Chairman Khawaja Group on part of Khawaja Flat Glass Industries Private Limited (KFGL), while on part of the banking syndicate by Kalim ur Rehman, President and Chief Executive of the Askari Commercial Bank Limited (ACBL).
Besides ACBL, Askari Leasing, Al-Baraka Islamic Bank, The Bank of Khyber and First Women Bank are facilitating the group in the financing of the project.
Khawaja Group is providing 60 percent of the project cost while the banks, as loan will provide 40 percent.
KFGL is pioneer of the glass industry in Pakistan and once again it has proved itself by pioneering the float glass project in the country.
Khawaja Mehboob Illahi, Chairman Khawaja Group, while speaking on the occasion said that the float glass project, being set up with 30 million dollar investment, would be the first such project in the developing world having a production capacity of 190 tonnes of glass per day.
He said that the entire machinery and equipment of the project were being purchased from the renowned suppliers based in USA, UK, Germany, France and Japan.
"Our product would be in conforming to the highest American Society for Testing and Materials (ASTM) quality standards", he added.
At present, he said there is huge demand of float glass in Pakistan and huge foreign exchange is being spent on the import of this glass being used on commercial plazas. He said that already way ahead in terms of its progress and at the end of this year it would start production.
Mehboob Illahi said that the float glass to be produced in KFGL would be cost effective and easy to purchase and would prove helpful in enhancing the use of glass in the country.
The project, he said is primarily aimed to substitute the imported float glass and to save millions of dollars of national foreign exchange.
Besides saving foreign exchange and helping to remain the national money within Pakistan, it will have positive impacts on the economy of Pakistan, he added.
He said that the establishment of this industry would also boost many other industries in Pakistan, which would be a good omen for strengthening the Pakistan economy.
Talking on the initiation of the project, he said that Khawaja Group has always remained innovator and the leader in the glass sector.
"Few years back we sensed the need for the production of high quality float glass within the country. Our estimate proven correct, wherein there is presently a great requirement of float glass in Pakistan", he said.
Talking on the future of this industry he said "We always have an unrelenting belief in Pakistan and its prosperous future and we hold the same for our new project".
The chairman reaffirmed the commitment of KFGL towards the development of latest technologies of glass manufacturing and producing high value added float glass.
While speaking on the occasion Kalim ur Rehman, President ACBL expressed satisfaction over provision of the financing facility to KFGL for this mega project, which would be a positive impact on the country's economy.
He said that investment of Rs 1.6 billion is an ample proof of the investor friendly atmosphere in Pakistan and it will provide a good attraction for the foreign as well as domestic investors to invest their money in Pakistan.
Praising the commitment of Khawaja Group with nation, he said that this is for the first time that the owner is providing 60 percent of the total project cost and banks providing only 40 percent.
He said that the banks syndicate is providing Rs 580 million to this group for a period of six years.
Kalim said that this would remain alive in memories forever and guide the investors and industrialists to explore new vistas of investment in the country in order to add in the economic stability of the country besides eradication of poverty and unemployment.
It may be recalled that float glass manufacturing in Pakistan is protected by a patent issued by a controller of patents and designs.
KFGL is only industry in Pakistan acquiring a valid manufacturing license from the patent holder to produce float glass in Pakistan.
Two of the glass factories Nowshera Glass and Ghani Glass had also announced the manufacturing of the float glass in Pakistan, while the KFGL goes in litigation against these two industries to protect their patent. The matter is pending in a court of law.
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