Motorcycle chain maker Daido Kogyo in Pakistan shifting to all local production

21, Jun. 2019

TOKYO, NNA - Daido Kogyo Co. will start making motorcycle chains in Pakistan in two years, taking its partnership with local manufacturer Atlas Autos (Private) Ltd. to the final phase and supplying more Japanese firms in the country.

Daido said Wednesday that a joint venture will be established at an industrial park in Karachi, in July. Daido and its Thai unit, Daido Sittipol Co., will each own 20 percent of the new firm, capitalized at 1.2 billion Pakistan rupees ($7.6 million), and Atlas will own the rest.

The move is based on a partnership signed with Atlas in November 2017, which called for an investment of $20 million and establishment of a joint plant in Pakistan.

Atlas, with technical assistance from Daido, currently makes chain drives and timing chains for Honda motorcycles.

The venture will start integrated production of motorcycle chains, including procurement, in May 2021, supplying Japanese motorbike makers in Pakistan.

The annual production target is 7 million meters of chains, equivalent to 5.0 million units, in 2024 with annual sales of 1.3 billion yen ($12 million) the same year. The new company will employ 180 workers in 2024.

A Daido spokesman in Tokyo, who declined to be named, told NNA on Thursday that the joint venture aims to expand sales not only to Honda Motor Co. but also to Suzuki Motor Co. and Yamaha Motor Co.

Pakistani conglomerate Atlas Group is a joint owner of Atlas Honda, a leading motorcycle manufacturer in Pakistan.