Services Industries Ltd., announced to set up a joint venture agreement company “Service Long March Tyres (Pvt) Ltd” in collaboration with Chaoyang Long March Tire Company of China and Myco Corporation of Pakistan.
The three firms collectively plan to make a long-term equity investment of $30.6 million within three years subject to regulatory approvals. This was informed in a notification sent to Pakistan Stock Exchange (PSX). Manufacturing plant will be setup in Karachi, sources confirmed. Signing ceremony will be held in Lahore on Monday 18th November-2019.
The project will embark on manufacturing and sale of radial tires for trucks and buses to meet the progressive demand of local market as well as its export to other countries. According to the notification issued by the company, the equity stake of parties in the Joint Venture Company will be; Service Industries Limited – 51% (with or without collaboration of associates/others), Long March Tyre Company – minimum 44% (maximum 49%) and Myco Corporation – maximum 5% (any shortfall will be contributed by Long March Tyre Company)