Chinese joint venture pledges fresh capital to boost tyre exports and industrial growth in Pakistan.

ISLAMABAD: Service Long March Tyres (Private) Limited has announced an additional investment of 120 million dollars in Pakistan. 

The move reaffirms strong Chinese confidence in the country’s manufacturing sector. 

The investment was confirmed during a meeting between Commerce Minister Jam Kamal Khan and a delegation from the company led by Chairman Jin Yongsheng. 

SLM is a Chinese-Pakistani joint venture between Servis Group and Chaoyang Long March Tyre of China. 

It operates as Pakistan’s first and largest all-steel radial truck and bus tyre manufacturer. 

The firm began commercial production in March 2022 at its Nooriabad facility in Sindh. 

Company officials stated the new funds will expand production capacity significantly. 

SLM expects to achieve 70 million dollars in exports by June 2026. 

It targets more than 100 million dollars in exports during the following financial year. 

Such performance would rank the company among Pakistan’s leading non-textile exporters. 

Pakistan’s tyre market reached 26 million units in 2025. 

The sector is projected to expand to 37 million units by 2034 at a four percent compound annual growth rate. 

SLM already commands approximately 55 percent share of the domestic market. 

In calendar year 2024 the company posted revenues of 44.882 billion rupees. 

This reflected a robust 68 percent year-on-year increase driven by higher volumes. 

The latest 120 million dollar commitment follows an earlier 80 million dollar approval in February 2026. 

That earlier investment targeted a new passenger car radial tyre plant in the same Sindh location. 

Combined expansions aim to lift annual capacity toward 2.4 million tyres under planned Phase III. 

Pakistan imported a large portion of its tyres historically. 

Local production by firms like SLM is reducing import dependence. 

The country has also emerged as a notable exporter of truck and bus radial tyres. 

In the first quarter of 2025 Pakistan ranked among the top ten global suppliers to the United States market. 

Exports grew 76 percent year-on-year to over 111000 units in that period. 

Chinese foreign direct investment continues to dominate inflows into Pakistan. 

In January 2026 alone China accounted for 41.9 percent of net FDI. 

This latest tyre sector pledge aligns with broader China-Pakistan Economic Corridor objectives. 

The investment is expected to generate hundreds of direct and indirect jobs. 

Earlier company projections indicated potential for up to 1000 new positions from similar expansions. 

Analysts view the development as a signal of growing investor trust. 

Pakistan’s auto and allied industries have recorded steady recovery. 

Vehicle sales and freight movement along new corridors have supported tyre demand. 

SLM exports tyres to over four continents already. 

Its products meet international quality standards and serve both OEM and replacement markets. 

The Nooriabad special economic zone location offers logistical advantages near Karachi port. 

This facilitates efficient exports to key markets including the United States and Europe. 

Commerce Minister Jam Kamal Khan welcomed the announcement. 

He highlighted the government’s commitment to ease of doing business reforms. 

Such policies have attracted multiple Chinese investments in recent months. 

The tyre industry contributes to Pakistan’s non-traditional export push. 

Textile remains dominant but diversification into engineering goods gains momentum. 

SLM’s growth trajectory positions Pakistan as an emerging regional tyre hub. 

Industry insiders anticipate further capacity additions across the sector. 

The 120 million dollar injection comes at a time of positive macroeconomic indicators. 

Inflation has eased and foreign reserves have strengthened. 

These factors enhance overall investment sentiment. 

Regional media reports have widely covered the development. 

Outlets including Business Recorder and ProPakistani detailed the meeting outcomes. 

International coverage remains limited at this stage. 

Local reports serve as primary authentication of the investment figures. 

Experts project sustained double-digit growth in organised tyre manufacturing. 

The replacement segment dominates demand while original equipment sales rise with vehicle output. 

SLM’s focus on radial technology meets global safety and efficiency standards. 

This differentiates it from older bias-ply imports. 

The joint venture structure blends Chinese technology with Pakistani operational expertise. 

Servis Group brings decades of local manufacturing experience. 

Chaoyang Long March contributes advanced production know-how. 

Together they have built a facility compliant with international certifications. 

Future plans include potential listing on stock exchanges. 

Earlier discussions involved an initial public offering on the Pakistan Stock Exchange. 

Such moves would further integrate the firm into capital markets. 

The announcement underscores Pakistan’s attractiveness for labour-intensive industries. 

Tyre manufacturing employs skilled and semi-skilled workforce. 

It also stimulates ancillary sectors including rubber compounding and logistics. 

Government incentives under export facilitation schemes support such projects. 

Duty drawbacks and special economic zone benefits reduce operational costs. 

SLM has already utilised these schemes for its existing exports. 

Customs data shows consistent shipments to multiple destinations. 

The fresh capital will accelerate modernisation and automation. 

This ensures competitiveness against established Asian producers. 

Pakistan’s strategic location enhances its role in global supply chains. 

Proximity to Middle East and African markets offers additional export potential. 

The investment is expected to yield long-term foreign exchange earnings. 

It also strengthens bilateral economic ties with China. 

Officials described the meeting as highly productive. 

Both sides expressed satisfaction with ongoing collaboration. 

The delegation appreciated Pakistan’s investment-friendly policies. 

They particularly noted measures against tyre smuggling. 

Such enforcement protects legitimate manufacturers. 

SLM’s success story reflects the broader revival of Pakistan’s industrial base. 

From near stagnation a few years ago the sector now shows clear momentum. 

This latest chapter reinforces optimism for sustained foreign investment inflows.