Yamaha to open new plant in Pakistan

50-acre site will produce Euro-compliant motorcycles

YAMAHA are set to open a new motorcycle manufacturing plant in Pakistan.

The $150 million (£99m) plant will produce Euro-II & Euro-III compliant motorcycles over 125cc.

Yamaha first submitted plans for the 50-acre plant just outside of Karachi in 2009. Red tape has held up the plant's approval but new Finance Minister, Salim Mandviwala has approved the plans.

Yamaha's new factory is expected to create 45,000 jobs in the region and help establish ancillary industries. There are over 60 motorcycle manufacturing plants in Pakistan, almost all are unregulated and produce sub-125cc motorcycles based on 1970s technology and patents that have now expired.

Pakistan currently produces over 1.8m motorcycles a year, with export numbers negligible. That could now change.