Service Long March Tyres to Invest Rs30 Billion in Pakistan

Service Long March (SLM) Tyres, a joint venture between Chinese and Pakistani entities, has unveiled plans to inject an additional Rs30 billion into Pakistan to enhance its operations. The announcement came through Service Industries Limited, the parent company, in a disclosure to the Pakistan Stock Exchange. The Chairman and CEO of SLM conveyed their ambitions to Prime Minister Shehbaz Sharif during a recent meeting, outlining their strategy to double production capacity, boost exports to $100 million by 2025, and launch a project aimed at exporting specialized tyres to the EU and USA with an extra investment of Rs30 billion.

Prime Minister Shehbaz Sharif pledged full support for SLM's expansion initiatives and urged relevant government departments to streamline processes for export-driven progress. The meeting, attended by key officials, emphasized the significance of attracting foreign direct investment (FDI) to Pakistan, a country that has witnessed a decline in FDI inflows in recent times due to security challenges and political uncertainties. In the ongoing fiscal year, FDI in Pakistan stood at $1.1 billion from July to March, marking a decrease compared to the previous year.

SLM specializes in manufacturing all-steel radial truck and bus tyres in Pakistan, established as a collaboration between Servis Group and Chaoyang Long March of China. Service Industries Limited and its subsidiary, Service Global Footwear Limited, hold substantial ownership stakes in SLM. Earlier this year, shareholders of Service Global Footwear Limited greenlit additional long-term equity investments in SLM, underscoring their confidence in the company's growth trajectory.

Service Long March's substantial investment in Pakistan signifies a vote of confidence in the country's economic potential. The expansion plans not only promise to create job opportunities and boost the local manufacturing sector but also position Pakistan as a competitive player in the global tyre market. With government backing and private sector enthusiasm, SLM's growth trajectory bodes well for Pakistan's economic landscape.