KARACHI: Amid uncertain economic conditions, an automobile company has announced that it will start rolling out electric vehicles (EVs) in August, while a glass float manufacturing project continues to face delays.
In a stock filing on Thursday, Lucky Core Industries (LCI) and Tariq Glass Industries Ltd (TGL) jointly said that Lucky TG Private Ltd (LTG) was established as a joint venture company with the primary objective of developing an advanced float glass manufacturing facility with a production capacity of up to 1,000 tonnes per day.
The greenfield facility was intended to be set up in two phases, each with a production capacity of 500 tonnes a day. The first phase was expected to become commercially operational during FY25.
However, due to the prevailing economic conditions, the project has not progressed as planned, leading to delays that necessitated a reassessment of the project timelines.
Lucky’s glass project faces delays
As considerable funds are lying dormant in LTG in the form of paid-up capital injected by TGL and LCI, the board of directors of LTG has approved the buyback of its shares in accordance with Section 88 of the Companies Act 2007, read with the relevant provisions of the Companies Regulations 2024, subject to the requisite approvals.
The buyback will be proportionate to TGL’s current shareholding (i.e., 49pc) and TGL would continue to maintain its 49pc shareholding in LTG after the completion of the buyback transactions.
Both companies said that the joint venture partners remain committed to completing the project as soon as the economic environment improves.
On Thursday, Dewan Farooque Motors Ltd (DFML) informed the Pakistan Stock Exchange (PSX) that it has entered into a toll manufacturing agreement with ECO-Green Motors Ltd (EGML) for the manufacture of EGML’s Honri-VE (200km and 300km range), thereby becoming the leading manufacturer of electric vehicles in Pakistan. Production is expected to commence in August.
On Wednesday, DFML said it had resumed the commercial production of a “special purpose KIA commercial vehicle” with the product name Kia Shehzore.
Published in Dawn, May 31st, 2024
