Chaoyang Long March invests in $250 million Pakistan joint venture
Pakistan’s leading tyre manufacturer, Service Industries Ltd. and Chaoyang Long March Tyre Co. Ltd. have reportedly signed a joint venture agreement to manufacture radial truck tyres in Pakistan.
Under the agreement, Service Industries Limited will own 51 per cent and Chaoyang Long March Tyre Co Ltd will own 49 per cent of the newly formed company, Service Long March Tyres Pvt. Limited.
Phase 1 of the $250 million project will begin with a $100 million investment in SITE Sindh. Land for the project has been purchased and design of the plant has been initiated.
Pakistan’s “The International” reported that the JV will start producing bus and truck tyres in 2020. Initially 600,000 tyres will be produced annually. After the project is fully operational, tyre producing capacity will rise to 2.4 million pieces per annum.
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 commented: “Long March is a global brand. For our expansion we looked at many countries and decided that Pakistan offered the best opportunity with a sizeable 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, Advisor 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 BOI, members of the business community and media.
Chaoyang Long March Tyre Co. Ltd. was established in January 2003 after the purchase of the original Liaoning Tyre Group Co. Ltd., which was established in 1966.
Service Industries Limited was established in 1961 and is Pakistan’s leading footwear and tyre company. Service Industries is a market leader in bicycle, motorcycle and three wheelers. Most recently Service Industries has entered the tractor tyre market. The company is Pakistan’s leading exporter of footwear and tyres.