SLM Tyres reaching first-phase production
ISLAMABAD, Jul. 27 (Gwadar Pro)-Servis Long March (SLM) Tyres has reached a milestone of manufacturing more than 2,000 tyres per day at its Nooriabad plant in Sindh Industrial and Trade Estate (SITE), Karachi.
It marks the completion of the first-phase production capacity of 740,000 tyres per annum, Gwadar Pro learned recently.
SLM Tyres is a $300 million joint venture between Pakistan’s Servis Group and China’s Chaoyang Long March Co. Ltd. It’s the first All-Steel Radial Truck and Bus Tyres manufacturing facility in Pakistan with complete transfer of technology right from the commencement of commercial production, according to the Servis Group. The JV started commercial production in March 2022.
Servis Group owns 51% shares in the JV while Chaoyang Long March Co. Ltd. owns a 44% stake.
The targeted production capacity of SLM Tyres is 2.4 million tyres per annum in three phases. Annual tyre production is expected to rise from 0.74 million in the first phase to 1.2 million in the second phase and 2.4 million in the third phase.
According to the Servis Group, the project will contribute Rs. 23 billion to the national exchequer by way of customs duty, sales tax and income tax during its initial 10 years of commercial operations.
SLM tyres are being exported to the US, with the next areas of focus being the European Union and Brazil. Yearly exports are expected around $70 million in the first year of commercial operations, which will gradually increase to $300 million, Servis said.