SLM to invest USD80m in PCR tyre line

KARACHI: In a move that underscores growing confidence in Pakistan’s high-end manufacturing sector, Service Long March Tyres Limited (SLM) has approved an USD80 million investment to establish a dedicated Passenger Car Radial (PCR) tyre production line at its Nooriabad facility.

The development was formally disclosed to the Pakistan Stock Exchange by Service Global Footwear Limited, one of the key shareholders in the venture.

The new PCR line will be integrated into SLM’s existing manufacturing complex in Nooriabad, widely recognised as Pakistan’s first All-Steel Radial tyre plant. Since commercial operations began in March 2022, the facility has primarily focused on Truck and Bus Radial (TBR) tyres. The latest expansion marks a strategic pivot toward the passenger vehicle segment, reflecting rising domestic demand and the company’s ambitions to deepen its export footprint across regional and international markets.

Industry analysts view the move as a natural progression for the venture, which has steadily scaled up production and market presence over the past three years. SLM is a joint venture between Pakistan’s Servis Group and China’s Chaoyang Long March Tyre Co, Ltd. The collaboration represents a planned multi-phase investment of approximately USD300 million.

The company’s current shareholding structure comprises Service Industries Limited with approximately 32.09 percent, Service Global Footwear Limited holding around 18.91 percent, China’s Chaoyang Long March Tyre Co, Ltd owning about 44 percent, and other investors, including Myco Corporation, collectively accounting for roughly 5 percent. The joint venture brings together Chinese technical expertise in advanced radial tyre technology and the Servis Group’s established industrial infrastructure and nationwide distribution network in Pakistan.

Since commencing commercial production, SLM has reported strong topline growth, generating revenue of over Rs10.6 billion in the first nine months of FY2023. This performance reflects the company’s rapid scale-up and strengthening position in the domestic tyre market.

The USD 80 million Passenger Car Radial (PCR) expansion forms part of a broader strategy aimed at achieving USD 100 million in annual exports. In line with its long-term growth ambitions, the company has also indicated plans to pursue an initial public offering (IPO) and seek a formal listing on the Pakistan Stock Exchange to support future capital requirements and further expansion.

The new PCR facility will deploy advanced all-steel and semi-steel radial technology through a sophisticated five-stage manufacturing process. This includes precision rubber compounding with carefully controlled chemical mixing; component preparation such as steel beads and tread formation; tyre building using specialised drums; vulcanisation through heat-curing in moulds; and comprehensive X-ray and uniformity testing to ensure compliance with international safety standards.

Located within a Special Economic Zone (SEZ), the Nooriabad plant benefits from long-term tax incentives and duty-free machinery imports that strengthen its status as a flagship green-field industrial project. With the addition of the new PCR line, Service Long March Tyres is positioning itself not only as a domestic market leader but also as a competitive, export-oriented manufacturer in the global tyre industry.

Copyright Business Recorder, 2026