Lahore (reuters): Hyundai Motor Company (HMC) plans to set up a car assembly plant in Pakistan in a joint venture with Pakistani textile giant Nishat Mills, a Nishat Mills official said on Friday.

Hyundai , South Korea’s largest automaker, has been seeking a local partner to set up an assembly line in Pakistan , Nishat Mills company secretary Khalid Chauhan told Reuters.

 “Today we have signed a memorandum of understanding between the two companies and we will set up a … project for the assembly and sales of both passenger and commercial vehicles,” said Chauhan. “The project will be subject to statutory and regulatory approval,” he added.

In a notice sent to the PSX today, Nishat Mills conveyed that it has entered into a MoU with HMC South Korea and Sojitz Corporation, Japan for negotiating and establishing a framework for setting up a green field project for assembly and sales of HMC passenger and 1 ton commercial vehicles in Pakistan .