Samsung Electronics to Manufacture Mobile Phones in Pakistan... Partners with Local Company

[Image source=Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Samsung Electronics is expected to start producing mobile phones locally by the end of the year in partnership with a Pakistani company.

According to industry sources on the 18th, Lucky Cement, Pakistan's largest cement manufacturer, announced to the Pakistan Stock Exchange on the 16th that its subsidiary Lucky Motor Corporation (LMC) signed a contract with Samsung Electronics Gulf to produce Samsung Electronics branded mobile devices in Pakistan. According to the announcement, Lucky Motor Corporation currently manufactures, assembles, markets, distributes, and sells automobiles and automotive parts and accessories under the Kia and Peugeot brands in Pakistan.

The factory where Samsung Electronics' mobile devices will be produced is planned to be located within Lucky Motor Corporation's existing automobile production plant in the Bin Qasim Industrial Zone, a large industrial complex in Karachi, a southern port city of Pakistan. The production facilities are expected to be fully prepared by the end of this year.

Lucky Motor Corporation has begun the approval process with authorities to carry out the business contracted with Samsung Electronics and has submitted related documents to the Pakistan Telecommunication Authority (PTA) to secure a license, Lucky Cement explained. Lucky Cement added that both parties will discuss additional information regarding the scale of investment related to production facilities and production volume over time.

According to local foreign media Arab News, Pakistan's annual mobile phone market size is estimated at 34 million units. In terms of value, it is analyzed to be around 2.5 billion dollars based on import data from the Pakistan Bureau of Statistics. Arab News reported, "Analysts estimate the investment scale could reach 100 million dollars," and one analyst also stated that the related annual sales could range from 300 million to 600 million dollars.

This content was produced with the assistance of AI translation services.