Islamabad June 09 2021: Ministry of Commerce announced that Service Group joint venture with Chinese firm Chaoyang long march Tyre Co Ltd, is ready to start its Tyre manufacturing plant this month in Pakistan for buses and trucks.
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The total cost of the project is PKR16.43 billion in a debt to equity of 50:50. The Joint Venture plans to export at least 85% of its tyre output with a targeted production capacity of 600,000 tyres per annum.
Currently there is no local player operating in this segment of tyre market and SLM would be the first player in the local industry to bring TBR manufacturing technology in Pakistan. The entire manufacturing technology would be transferred from the Chinese
Service Long March Tyres (Pvt.) Limited is a joint venuture between Service Industries Limited and Chaiyang Long March Tyre Co., Ltd and Myco Corporation. The facility will manufacture “All Steel Radial” tyres of trucks and buses.
Chaiyang Long March Tyre Co., Ltd (LM) is a Chinese tyre manufacturer based in Chaoyang, Liaoning province and was established in 2003. LM possesses a core expertise in manufacturing of “All Steel Radial” (TBR Tyres). LM’s current production capacity is of around 3.4 million tyres per annum. LM manufactures a total of 236 varieties across 59 specifications and 50 patterns for light, medium & heavy truck and bus tyres. Almost 60 percent of total production is being exported to a total of 90 countries including USA, South America, EU, Africa, Middle East, Russia, Turkey, India, and Pakistan.
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Myco Corporation is a sole proprietorship owned by Mr. Shabir Ahmad, son of Haji Gul Muhammad. Myco Corporation is the exclusive distributor of Chaoyang Long March Tyre Co. Ltd, China, in Pakistan and is engaged in the import and sale of “All Steel Radial” tyres of trucks and buses (TBR Tyres).
The manufacturing facility is located at Sindh Industrial Trading Estate – Nooriabad, Sindh, having area of 50 acres for a total cost of PKR 830 million. T he construction work of the Project has started in October 2020 and is expected to be completed by July 2021. SLM would manufacture “All Steel Radial” tyres of trucks and buses (TBR Tyres) for local and export markets.