Karachi: In a major development for Pakistan manufacturing sector, Service Long March Tyres (Pvt) Ltd is all set to commence its multi-billion rupee tyre manufacturing plant in Pakistan this month.

The development was shared by Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood in a series of tweets on Wednesday. “MoC is pleased to announce that Service Group’s joint venture with Chinese firm Chaoyang LongMarch Tyre Co Ltd is ready to start its manufacturing plant this month in Pakistan for buses and trucks.”

The advisor informed that the total cost of the project is Rs16.43 billion. “The joint venture plans to export at least 85% of its tyre output,” he added.

In November 2019, Service Industries Ltd. and China's Chaoyang Long March Tyre Co. Ltd. set up a joint venture in Pakistan to oversee the construction of a radial truck/bus tire plant. Service Industries Limited has a 51 percent share in this JV. Chaoyang LongMarch owns 44 percent and Myco Co owns 5 percent.

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Earlier, Omar Saeed, who is the CEO of Service LongMarch Tyres Limited, told BR Research that the total project cost is $250 million with phase 1 being completed in August this year at $100 million. In phase 1, the company will make 600,000 tyres per year, with a plan to export 85 percent of the production. Phases 2 and 3 will help take the production up to 2.4 million tyres per year by 2026.

The factory is located on 50 acres of land in Nooriabad, SITE.

On Tuesday, the Board of Directors of Service Global Footwear Limited (SGFL) approved to utilize the excess IPO funds amounting to Rs621.5 million for making additional equity investment in Service Long March Tyres Private Ltd, the company informed the Pakistan Stock Exchange (PSX).