Lahore, Pakistan – China’s LongMarch has signed an agreement in Lahore with tire maker Service Industries Ltd to set up a joint venture tire plant.
Located in Pakistan’s Sindh province, the facility will become the country’s first truck and bus tire factory, LongMarch told ERJ.
The project has $250 million (€225 million) total investment with $100 million earmarked for phase one, under the deal inked 18 Nov.
The project’s annual capacity will reach 600,000 units when phase one is completed and ramp up to 1.2 million units after phase two.
LongMarch plans to bring the total capacity of the plant to 2.4 million units/year in phase three – assuming operational results are as expected.
The joint venture is 49% owned by LongMarch and 51% owned by Service Industries, the Chinese company stated.
Based in Chaoyang, Liaoning province, LongMarch was set up in 2003 and currently has 2.8 million units annual capacity in China, with 1,600 employees.
The truck & bus tire maker claims to be a leading tubeless tire producer in China with a portfolio covering 225 specifications in 51 sizes and 60 patterns.