Pakistan’s leading tyre manufacturer, Service Industries Ltd, and Chinese giant, Chaoyang Long March Tyre Co Ltd, signed a Joint Venture Agreement to manufacture All Steel Radial Truck and Bus Tyres in Pakistan.
Chaoyang Long March Tyre Co Ltd was established in January 2003 after purchasing the original Liaoning Tyre Group Co Ltd which was established in 1966, with all-steel radial tire production lines. After a period of immense success and growth, they currently export their products to over 90 countries.
Service Industries Limited was established in 1961, and is Pakistan’s leading footwear and tyre company. Servis is a market leader in bicycle, motorcycle and three wheelers. Most recently Servis has entered the tractor tyre market. The company is Pakistan’s leading exporter of footwear and tyres.
Under the agreement, Service Industries Limited will own 51% and Chaoyang Long March Tyre Co Ltd will own 49% of the newly formed company, Service Long March Tyres Pvt. Limited.
Phase 1 of the $250 million project will begin with a $100m investment in SITE Sindh. Land for the project has been purchased and design of the plant has been initiated.
Arif Saeed, CEO of Service Industries Limited, said “We have 50 years of experience in the tyre industry, and we have the most recognised brand and largest distribution network in the country. In Long March we have found a top notch partner, with leading technology and a vision similar to ours. Together, we will complement each other and intend to build a world class company.”
Li Qingwen, Chairman, Chaoyang Long March Tyre Co Ltd while speaking at the JV signing ceremony, said “Long March is a global brand. For our expansion we looked at many countries and decided that Pakistan offered the best opportunity with a sizable domestic market, investor friendly policies and a good, skilled workforce. I am very excited to be working with Service Industries Limited as our local partner. Their experience and the 3,000 skilled workers they have will be a huge asset for the JV company. We look forward to exporting tyres around the world from our new factory.”
Abdul Razak Dawood, adviser to the prime minister on commerce, industries, textile and investment, was the chief guest and the signing ceremony was also witnessed by Long Dingbin, consul general of People’s Republic of China, Zubair Gilani, chairman of the BOI, members of the business community and media.