KARACHI: The country has started reaping benefits of the China-Pakistan Economic Corridor (CPEC), as one of the largest manufacturers of explosives in the world, Beijing Auxin Chemical Technology Limited, is set to establish a company for manufacturing of emulsion explosives in Pakistan.
The Biafo Industries Limited, a local emulsion explosive manufacturer, announced through stock filing that it has signed a Memorandum of Understanding (MoU) with Beijing Auxin Chemical Technology Limited, a subsidiary of China North Industries Corporation (Norinco), to establish a joint-venture company in Pakistan for manufacturing of emulsion explosives.
According to the MoU signed between the Biafo Industries and Beijing Auxin Limited, the latter would have 51% shares while the former would have 49% share in the company, which would cater to the CPEC related construction work.
The joint-venture company would be established in order to meet the future demand of explosives and blasting accessories in the light of CPEC, large-scale mining and hydroelectric projects, said an official of Biafo Industries.
The Biafo Industries already import emulsion explosives from the Beijing Auxin Chemical Limited and now it has taken the initiative to bring the world’s top company to set up a joint venture in Pakistan.
Beijing Auxin Chemical Technology Limited is one of leading company in China, supplying a wide range of pumps, casting steels, explosives and common chemicals. It runs the civilian explosive business of the corporation, primarily engaging in civil blasting equipment and chemical products research and development, import and export as well as civilian blasting services.
Its main products include explosive materials and chemical products. Industrial explosives, detonating cord, detonator and electric detonators are exported to Africa, Latin America, North America and Asia. It’s operating performance and technical capabilities are among the best in the country.
The Biafo Industries is currently engaged in manufacturing its product, Tovex Water Gel Explosive, at the Hattar Industrial Estate, Khyber Pakhtunkhwa.
It is to be noted that CPEC is the project of highways, railways and pipelines for the transportation of oil, gas and to continue many other trades. This corridor would prove itself as the economic gateway for China to the Middle East and Africa. Kashgar, China would be the starting point of the highway and its destination would be Gwadar, Pakistan. The route of this highway would pass through all the provinces of Pakistan, including AJK and Gilgit Baltistan. The total length of the highway is estimated to be 3,000km while $45 billion is the initial estimated cost of this mega-project. This project is expected to be completed by 2030.
Published September 17, 2015 on http://www.dailytimes.com.pk/