January 23, 2020 (MLN): Ghandhara Nissan Limited has apprised the Pakistan Stock Exchange about the progress of the Datsun Car project and the capacity enhancement of the existing operations of the company.
According to the report issued to the PSX, Ghandhara and Nissan Motor Co. Limited have spent a lot of time and resources to ensure optimum level of localization in an efficient and effective manner.
However, as part of NML’s recent business strategy and particularly the management policy change with respect to Datsun segment, it is critical to note that Indonesia, which is the mother plant for Datsun CKD kits, may not be a sustainable KD source.
‘Though, the company still awaits NML's assurance / confirmation on the continued and smooth supply of Datsun parts, yet it is a high time to put on-hold the ongoing project activities before getting a dear roadmap from NML’ the report said.
Keeping the above situation in view, till NML takes a final decision on this project, GNL will have to wait for a final verdict on the viability of the project. On the other hand, cognizant of the incentives of the Brownfield status, the company is also exploring other avenues in parallel with focusing on capacity building of existing operations.
