The International Finance Corporation (IFC) and a consortium of banks in Pakistan are providing up to US$50.2 million in financing to Armstrong ZE Pvt. Ltd. to increase local tyre production. Armstrong ZE, a member of the same group of companies as UAE-based Zafco Group Holding, intends to invest an estimated US$92 million in a plant capable of producing 1.4 million Armstrong brand tyres a year.
Service Long March (SLM), Chinese tyremaker Chaoyang Long March’s joint venture in Pakistan, is preparing to list on the Hong Kong Stock Exchange. On 12 January, Muhammad Aurangzeb, Federal Minister of Finance and Revenue of Pakistan, exchanged views with Jin Yongsheng, chairman of Service Long March, and Omar Saeed, CEO, before attending the Asian Financial Forum in Hong Kong.
On the eve of Automechanika Dubai, Shandong-based tyre manufacturer Huasheng held two signing ceremonies for Ghandhara Tyre and Rubber (GTR), a manufacturer based in Pakistan, and Al Rabee Al Akhder (AR), a distributor based in the UAE, respectively. In short, it means Huasheng has made further in-roads into developing its position in the Middle East and South Asian markets.
Pakistan’s Service Industries Limited has announced an additional Rs 30 billion (£85.7 million) investment in Service Long March Tyres (Private) Limited (SLM), a joint venture with China’s Chaoyang Long March in which it, together with a subsidiary, holds a 51 per cent shareholding.
Tyrepress China has learned that the second phase of the Pakistan tyre factory Service Long March (SLM) will be completed and put into production before the end of 2024. The factory is a joint venture between Chaoyang Long March and Pakistan-based Service Industries Limited. Information shows that the total investment in the SLM factory is US$250 million, with Chaoyang Long March accounting for 44 per cent.
The first phase of the China-Pakistan joint all-steel radial tyre plant, Service Long March (SLM), has been officially put into production, with an annual output of 740,000 sets of all-steel radial tyres.
Techking Tires is opening its first Techking Service Center (TSC) outside its home market of China this month. This inaugural international TSC is located in Pakistan, one of the largest markets for Techking truck tyres. Techking considers the launch of the TSC in Pakistan a “key breakthrough and milestone” in its global deployment, and the company intends to follow this by establishing some ten TSCs around the world in 2021.
According to authoritative Pakistani newspaper Dawn, Chinese manufacturers now hold an 85 per cent share of the country’s car tyre market, up from 40 per cent in 2018. It also reports that Chinese tyre makers have increased their share of the light truck tyre segment from 40 per cent to 65-70 per cent during the same timeframe, while their share of the truck/bus tyre market has risen from 40 per cent to more than 75 per cent.
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.
General Tyre and Rubber Company of Pakistan Limited is planning to invest around US$200 million on a new plant, local government officials told The News International on Saturday 2 February.
Vacu-Lug Traction Tyres Ltd has pledged its support to The Midland Doctors Charity, with a donation to the organisation, which was set up to help the community of Pakistan following the devastating earthquake of 2005. Midland Doctors is led by NHS doctors, senior consultants and business leaders, who provide medical care.
Under a technology transfer agreement signed with Pakistan-based battery manufacturer Century Engineering Industries, South Korean tyre maker Kumho Tire will provide technological and manufacturing know-how as Century establishes its own tyre production plant. The agreement signed in Seoul today covers the ten-year period to September 2028; Century Engineering will initially pay Kumho Tire US$5 million and 2.5 per cent of turnover for the assistance provided, with the contract scheduled for review after five years.
General Tyre and Rubber Company of Pakistan Limited reports net sales for the financial year ending 30 June 2018 increased 22.2 per cent year-on-year to PKR 11,785.5 million (£78.7 million). Profit from operations amounted to PKR 1,190.1 million (£7.9 million), down 8.7 per cent on the previous year’s result. Total comprehensive income for the year was PKR 671.4 million (£4.5 million), 20.7 per cent lower than in the 2016-17 financial year. Earnings per share amounted to PKR 11.97 (2016-17: PKR 14.75).
Continental intends to divest its shareholding in General Tyre and Rubber Company of Pakistan Ltd. The company owns a 9.78 per cent share in Pakistan’s largest tyre maker through Continental Global Holding Netherlands B.V., and according a notification sent by General Tyre and Rubber to the Pakistan Stock Exchange, Continental Global Holding Netherlands intends to sell its entire shareholding “as soon as practically and economically feasible.”
Ukraine-based tyre maker PJSC Rosava reports that half the tyres produced at its Bila Tserkva facility are now exported to other markets, and says exports to certain key markets have markedly increased during the past year. Exports to the Middle East have risen 400 per cent since January 2015, while tyre shipments to Europe increased 100 per cent during that period. Deliveries to OEM customers have grown 44 per cent since January, the tyre maker added.
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Chaoyang Long March