Japanese plan $550m investment in car parts, interior goods

[GoldenAsif]

Japanese plan $550m investment in car parts, interior goods
Hitachi Car executives due in Dhaka early Feb
Jasim Uddin Khan

Japanese entrepreneurs are eying about US$550 million investment in car parts and car interior goods industry in Bangladesh, according to official sources.

The plan of installation of such a factory here by a Japanese leading car and engine parts company like Hitachi Car Engineering Co was laid bare last week at a meeting in Tokyo between the company's Senior Engineer Masayuki Unezaki and Commercial Councillor at the Bangladesh Embassy Abul Mansur Md Faizullah.


This factory would cost US$300 million, the meeting sources said.

A group of executives of the company is learnt to have decided to visit Bangladesh by early February to place a formal proposal to the government for setting up a branch factory here.


During the meeting with the Bangladesh Embassy official, Masayuki Unezaki said being a large used car importing country, Bangladesh has a good potential for Japanese car parts manufacturing industry.

"Bangladeshi consumers need regular engine and parts backup for Japanese reconditioned cars, which is now fulfilled by costly imports from Japan. If the company can install its branch office at Bangladesh, the cost of such imports would be reduced by around 40 percent," Masayuki added.


According to the sources, Bangladesh imports as many as 3,000 cars every year on an average, 80 percent of which are reconditioned ones.


In another development, the manufacturer of world famous Toyota brand car, Toyota Motor Corporation, now mulls setting up of a jute-based car interior textile industry in Bangladesh at a cost of $250 million.


The company has already conducted a study to assess the feasibility of the industry and found it suitable.


Senior Executive of the Toyota Motor Corporation Hajime Sakaquchi informed the commercial wing of the Bangladesh Embassy that they would conduct a further study before getting the project finalised.


The company senior official also hinted at an immediate visit of a top representative to Bangladesh in this connection.


Besides, car parts manufacturing company Japanese Automotive Parts Group has expressed desire to extend its support to the initiative to set up car interior textile goods industry by using jute.


A director of the group said the scenario of car interior textile and other goods is changing fast worldwide as consumers are now preferring environment-friendly natural fibre to artificial one in interior decoration.

http://www.thedailystar.net/2006/12/26/d61226050152.htm