KARACHI: As part of a partnership, the Biafo Industries Limited, a local emulsion explosive manufacturer, will make a $2.62 million equity investment in an associated undertaking of the Company Auxin Biafo Chemicals (Private) Limited. Auxin Biafo is a joint venture agreement between the Biafo Industries Limited and Beijing Auxin Chemical Technology Limited, a subsidiary of China North Industries Corporation (Norinco), a fortune 500 Top Company and one of the largest manufacturers of explosives in the world. The company (Biafo) has taken the decision in order to reap the benefits of the China-Pakistan Economic Corridor (CPEC). Company Secretary at Biafo Industries, Khawaja Shariq Tanveer, in a stock filing, said the main object of the associated undertaking, Auxin Biafo, is to manufacture and market emulsion explosives using state of the art technology with capability to supply ground station design, construction & operation as well as on-site mixed explosive to customers along with blasting services to the customers. Approval of the members of the Company is being sought for making equity investment of up to $2.062 million in the associated undertaking Auxin Biafo subject to regulatory permission(s) where total project cost is expected to be about $12 million, added Tanveer. In 2015, the Biafo Industries Limited had signed a Memorandum of Understanding (MoU) with Beijing Auxin Chemical Technology Limited, to establish a joint-venture company in Pakistan for manufacturing of emulsion explosives. According to the MoU signed between the Biafo Industries and Beijing Auxin Limited, the latter would have 51% shares while the former would have 49% share in the company, which would cater to the CPEC related construction work. The joint-venture company has been established in order to meet the future demand of explosives and blasting accessories in the light of CPEC, large-scale mining and hydroelectric projects. Beijing Auxin Chemical Technology Limited is one of leading company in China, supplying a wide range of pumps, casting steels, explosives and common chemicals. It runs the civilian explosive business of the corporation, primarily engaging in civil blasting equipment and chemical products research and development, import and export as well as civilian blasting services. The Biafo Industries is currently engaged in manufacturing its product, Tovex Water Gel Explosive, at the Hattar Industrial Estate, Khyber Pakhtunkhwa. In its annual report for 2017, Chairman Biafo Industries Dr. M. Humayun Khan said the company will continue to strengthen its position in the market to tap the opportunities likely to emerge from the CPEC and related projects.