Pakistan’s leading tyre manufacturer, Servis Industries Ltd., and Chinese giant, Chaoyang Long March Tyre Co. Ltd., signed a Joint Venture Agreement to manufacture All Steel Radial Truck & 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. Since their inception, they have experienced immense growth, and presently their success has enabled them to export products in over 90 countries.
Servis Industries Ltd was established in 1941, and is Pakistan’s leading footwear and tyre company. Servis is a market leader in bicycle, motorcycle and three wheelers. Recently, Servis has entered the tractor tyre market.
Under the agreement, Servis Industries Ltd will own 51% and Chaoyang Long March Tyre Co Ltd will own 49% of the newly formed company, Servis Long March Tyres Pvt. Limited. Phase one 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.
Mr Arif Saeed, CEO of Servis Industries Ltd said, “We have 50 years of experience in the tyre industry. We are the most recognised brand with the 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 intend to build a world class company.”
Mr 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 Servis Industries Ltd 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.”
Mr Abdul Razak Dawood, Advisor Commerce, Industries, Textile and Investment, was the Chief Guest, and the signing ceremony was graced by Mr Long Dingbin, Consul General of People’s Republic of China, and Mr Zubair Gilani, Chairman BOI, members of the business community and media.
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