In a joint venture, Servis Group and Chinese firm Chaoyang Long March Tyre Company Limited have established a tyre manufacturing plant in Pakistan for buses and truck, said Prime Minister’s Commerce aide Abdul Razak Dawood.
According to the government official, the total cost of the project is Rs16.43 billion and it will start operations in June. The “joint venture aims to reduce import expense while exporting the majority of the merchandise”, said Dawood, adding that the companies plan to export at least 85 per cent of the tyre output.
On Jan 6, Service Industries had announced that its subsidiary Service Global Footwear Ltd was going to be included in a joint venture project, Service Long March Tyres. According to a notice to the Pakistan Stock Exchange, this joint venture will manufacture and sell truck and bus radial (TBR) category of tyres in Pakistan for both local demand and to export.
Servis Group has remained the largest footwear exporter in Pakistan over the last decade. In the last two years, it has accounted for over 40 per cent of the total leather footwear exports of the country. SGFL exports more than 95 per cent of its total production. In 2020, it exported footwear to more than 20 countries over five continents.
The company supplies footwear to global brands like Zara, Caprice, Diana Ferrari, Dockers, Jack & Jones and London Rebel, among others. The principal purpose of the issue is to invest the amount raised as equity in Service Long March Tyres Ltd. (“SLM”) and become a stakeholder of approximately 18.91 per cent of the total shareholding of SLM.
