IBN, Motrex sign an initial pact

KATHMANDU: The Office of the Investment Board of Nepal (OIBN) and Motrex Co. Ltd., a South Korean company, signed an initial agreement to invest in a four-wheeler vehicle assembling plant in Nepal. After a series of negotiations, CEO of IBN Mr. Maha Prasad Adhikari and CEO of Motrex. Co. Ltd. Mr. Lee Hyung-Hwan placed their initials in the Project Investment Agreement (PIA) on December 11, 2019 which is subject to approval from their respective boards.
The 35th meeting of IBN, approved the investment of USD 10.54 million by Motrex. Co. Ltd. to establish a world-class manufacturing and assembling facility to produce passenger and commercial vehicles in Nepal. The company proposes to manufacture 5,820 units in its first year of operation and eventually increase production capacity to 50,000 units per year. The establishment of the manufacturing and assembly plant is expected to positively impact and support the development of the manufacturing industry in Nepal.
The project envisions creating domestic market demand and positively contribute towards narrowing the trade imbalance of the country. The company is expected to contribute towards the growth in the manufacturing sector and generate employment opportunity in Nepal. The proposed location for the manufacturing and assembly plant is in Sector “A” of Motipur Industrial Area site in Rupandehi, Butwal of Province 5. ♦