STX to supply CKD package to Bangladeshi car assembling company

[Courtesy of STX]

South Korea’s STX Corp. announced on Monday that it signed a memorandum of understanding (MoU) with Pragoti Industries Ltd., a state-owned enterprise in Bangladesh, in Seoul last week to supply completely knocked down (CKD) packages for passenger vehicles.

CKD involves exporting parts as they are and then assembling them locally for sale.

Under the MoU, STX will supply passenger car CKD packages to Pragoti Industries on a long-term basis. It plans to expand the range of vehicle models to include specialty vehicles by the end of this year.

STX said that the vehicles manufactured under the program will be primarily delivered to the Bangladesh government.

“We expect this supply agreement to be a catalyst for expanding the automotive industry in Bangladesh,” said STX Chief Executive Officer Park Sang-jun.