MOBILE WORLD Magazine
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Motorcycle Parts

October 18, 2005
 

Role of Pakistan Machine Tool Factory in Indigenization of Auto Parts

 

By Engr. Wasi Uddin, General Manager, (Business Development Division) Pakistan Machine Tool Factory

The project of Pakistan Machine Tool Factory (PMTF) was approved by the National Economic Council (NEC) in June 1964 at a total cost of Rs 116.2 million. The factory was established in 1968 in technical collaboration with Oerlikon Buhrle of Switzerland and started its regular production in 1970. The objective of establishment of PMTF was to build-up the basic technology of Machine Tools. In order to achieve economic viability it was planned to set up facilities for manufacture of defence products, die cast components, and automotive gears as well. The products initially selected for manufacturing were Milling Machines model K4 & K6, Turret Lathe model T3C, Gear Boxes and Axles of Truck. Hence, since its inception, PMTF is having the dual role, i.e. assembler as well as vendor. It has effectively played these roles and kept on diversifying its products in line with market demand.



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PMTF was established with share capital of Rs 292 million subscribed by the Government of Pakistan. The company has so far generated revenue of over Rs 1.5 billion for the government in shape of taxes and duties. Besides, it has played prominent role in:

  • Export of various products of worth USD 37 million.
  • Saving of precious foreign exchange through import substitution of high-tech end products of machine tools and weapons.
  • Saving of millions of dollars in foreign exchange, through import substitution of value added components and sub-assemblies for tractors, motorcycles, trucks, cars, traction motors of locomotives etc.
  • Contributed significantly in localization by supplying high-tech components and sub-assemblies of worth over Rs 9 billion to local assemblers of automotive vehicles.
  • Reducing dependency on foreign sources.
  • Providing skilled / highly skilled technical manpower to local industry.
  • Since very beginning PMTF has played the key role in localization of high-tech components of automotive vehicles. This category of components was unattractive for other private vendors on account of technological complexities and doubtful results. PMTF accepted the challenge and developed these components (spur gears, straight bevel gears, spiral bevel gears, spline shafts etc) of gear box and rear axle for various vehicles not only by using the drawings provided by customer but also by adopting most difficult process of ‘Reverse Engineering’. The localization of these parts not only enabled local assemblers in achieving higher level of deletion but also resulted saving of millions of dollars in foreign exchange. The components so far delivered by PMTF to local assemblers of tractors, trucks, motorcycles, traction motors of locomotives are summarized below:
  • MF Tractors Parts: 175,000 Sets, Rs.4,500 million
  • Fiat Tractors Parts: 72,000 Sets, Rs.2,600 million
  • Bedford Truck Gearboxes: 18,000 Nos, Rs.200 million
  • Bedford Truck Rear Axle: 8,200 Nos, Rs.156 million
  • Wheel Parts of Motorcycles: Rs.1,200 million
  • Pinion and Gears of Traction Motors of Locomotives: 8,400 Nos, Rs.125 million

TOTAL: Rs.8,781 million

PMTF is a unique company of Pakistan in respect of its integrated production facilities. It is equipped with large variety of conventional, NC and CNC machines capable to undertake wide range of machining operations, forging, pressure die-casting, heat treatment, surface treatment. The company kept on expanding and modernizing its production facilities. A major BMR&E programme was undertaken in 1986 to tune its facilities for higher volumes of tractor parts. In year 2004, CNC battery of machines was strengthened by further adding CNC machining centres and CNC chucker. This phase of BMR&E was completed with objective of enhancing facilities for machining of wheel parts of motorcycles and undertaking manufacturing of Crank Cases and Covers. The balancing and modernization of facilities would continue in year 2005 with addition of 04 pressure die-casting machines and machining centres to meet the increasing demand of automotive sector.

In order to face the challenges of WTO regime, PMTF is in process of modernizing its production facilities and taking different measures for reducing the production cost. Besides, various new products are under consideration for manufacture by utilizing company’s own capabilities and also through Joint Ventures or transfer of technology. PMTF has made valuable contribution to Industry, Agriculture and Transport sectors of Pakistan and proved its worth in National Emergency.  It has already developed a strong engineering base with a team of experienced professionals and highly skilled personnel with strong infrastructure. PMTF has moved a long way and now poised to play its role in manufacture of more sophisticated hi-tech products in the 21st Century.

-Published on pages#-18-19 October-2005 issue of MOBILE WORLD Magazine





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