The UAE's Al-Futtaim has acquired land to build a manufacturing plant in Faisalabad, Pakistan, with Groupe Renault, marking the French auto giant's debut in the Asian country.

Set to manufacture and assemble Renault vehicles in Pakistan, the plant will be established by Al-Futtaim Renault Pakistan at Faisalabad's M-3 Industrial City, the country's largest special economic zone. 

Design and pre-engineering work for the plant is under way, and on-site work is due to commence shortly.

The construction scheme will be formally launched in Q4 2018. Upon its completion, the facility will have a total installed capacity of 50,000 units each year.

Al-Futtaim and Renault expect production to begin in 2020. Al-Futtaim Renault Pakistan will now focus on establishing a dealership network in Pakistan for the plant.

READ: Auto giant Renault to enter Pakistan with the UAE's Al-Futtaim

Colin Cordery, senior managing director of Al-Futtaim Automotive International, said his team was "fully committed to the Pakistani market and to this project".

He added: "Together with Groupe Renault, we are delighted to have completed the land acquisition, which is an important milestone in the project.

"We believe this to be the optimal location for the manufacturing and assembly plant, and look forward to working with Faisalabad Industrial Estate Development and Management Company (FIEDMC) to develop a world-class and modern factory here."


Fabrice Cambolive, senior vice president and chairman of Renault's Africa, Middle East, and India operation, said the manufacturer would work with FIEDMC, plus Pakistan's federal, provincial, and local governments on the project.