The very big giant in motorcycle industry Japanese Honda Motor Co plans to form a joint venture company in Bangladesh to assemble motorcycles. According to the voice of a senior official of the industries ministry, the production cost of motorcycle in bangladesh increased so that the japanese Honda Motro Co have planned to form a joint venture company in bangladsh.
ABM Khorshed Alam (an additional secretary of the industries ministry) said that , Within five years of operation here, the company would go for full-scale motorbike manufacturing. Honda would form the JV plant with the state-owned Bangladesh Steel and Engineering Corporation (BSEC) soon, he said.
"On Wednesday, after vetting from the law ministry, I sent the summary of the deal for forming the joint venture company to the Prime Minister's Office for approval," said Alam.
The initial Tk 70-crore joint venture company will soon start operation at a rented abandoned garment factory at Maona in Gazipur. The company will increase investment after two years of operation.
The joint venture company is trying to purchase a suitable piece of land for setting up the permanent plant.
Of the total investment, BSEC will own 30 percent stake, while Honda will own 70 percent in the project, he informed.
He said the company was coming to Bangladesh as the demand for motorcycle in bangladesh was increasing.
