RECORDER REPORT

LAHORE: Atlas Honda Limited (AHL) has successfully completed its expansion project for increasing production from the present 750,000 units per annum to 1,350,000 units per year.

AHL spokesman Razi-ur-Rehman while briefing a group of journalists at Sheikhupura plant on Saturday has said that an investment of US 100 million dollars would be made directly by Atlas Honda, whereas its associated companies and parts suppliers would invest $60 million over the next five years to expand their own facilities and to develop capacities needed for new models to be introduced. A new line has started test production and regular production will start from October 20, he added.

The company will continue to invest in the next five years in new model development and the machinery, fittings and fixtures which are needed for an array of new models and variants that the company is planning to launch, he said.

“We announced our investment sometime back for the expansion of our motorcycle operations in Pakistan. And today we have accomplished it,” he added.

“A five-year expansion plan has already been implemented to double the installed capacity of our Sheikhupura factory, near Lahore, from the existing 0.6 million to over 1.2 million units per annum,” he added.

The company’s mother plant is based in Karachi spreading over five acres. Atlas Group signed technical agreement with Honda in 1963 and subsequently the plant started commercial production. In 1964, production began with seven motorcycles per day. Now the plant production has reached 550 units a day, he added.

Besides manufacturing Honda motorcycles, he added, the company produces various value-added auto parts for in-house consumption as well as catering the demand of after-sale market.

“The larger of the two plants is situated in Sheikhupura city, Punjab. This plant has the country’s largest in-house manufacturing facility,” he added.

Rehman said the plant was built in 1981 and spreads over an area of 27 acres with the establishment of modern and synchronized 500K plant in 2006.

“After the expansion, the plant is equipped for producing 3,000 units per day. The plant manufactures all six models - CD 70, CD Dream 70cc, Pridor 100cc, CG 125, CG Dream 125cc and CG 125 Deluxe,” he added.

AHL, he added, is a joint venture between Atlas Group and Honda Motor Co Ltd, Japan.

“Established in 1963, AHL is engaged in progressive manufacturing and marketing of Honda motorcycles and parts in Pakistan. The company has an annual capacity of 900,000 units at two plants, located at Sheikhupura and Karachi,” he said.

AHL’s portfolio also includes newly-launched imported CBR series in 150cc and 500cc.