Pakistan’s automotive and manufacturing sectors are set for a major uplift after Service Long March Tyres Limited (SLM) approved a $80 million investment to build a new passenger car radial (PCR) tyre manufacturing facility in Nooriabad, Sindh. The announcement came in a notice to the Pakistan Stock Exchange, marking one of the most significant industrial moves in the country this year.
SLM is a Chinese-Pakistani joint venture formed by Service Industries Limited and China’s Chaoyang Long March Tyre Company Ltd. The joint venture has already been producing all-steel radial truck and bus tyres at its Nooriabad plant, and now plans to expand into passenger car tyre production. Service Industries Limited and its subsidiary, Service Global Footwear Limited, hold key equity stakes in SLM, giving Pakistan an important role in driving tyre manufacturing growth.
The new PCR facility is expected to serve both domestic and export markets, allowing Pakistan to reduce dependence on imported tyres and generate foreign exchange through exports. This move aligns with broader economic goals to strengthen industrial output and encourage import substitution in critical manufacturing segments. Analysts say that producing tyres locally can also help stabilize prices in the automotive sector, benefiting both consumers and vehicle manufacturers.
The investment decision follows earlier expansion plans announced by SLM Tyres. In 2024, the company revealed plans to invest approximately Rs30 billion (around USD108 million) to double production capacity and boost exports to global markets such as the United States and European Union. The new PCR plant adds another layer to this long-term strategy, positioning Pakistan as a regional tyre production hub.
Manufacturers say the move could create significant job opportunities in Sindh and across the supply chain. Skills development and new employment in tyre engineering, logistics, and quality testing are among the expected benefits. Experts point out that modern tyre manufacturing requires advanced machine systems and precision engineering, which can create high-value roles and strengthen industrial expertise locally.
Pakistan’s tyre industry has historically included companies like Ghandhara Tyre & Rubber Company, which produces millions of tyres annually and holds an established presence in the market. The new facility by SLM Tyres adds competition and capacity, especially in the passenger car segment that has seen growing demand as vehicle sales rise in the domestic market.
Service Industries Limited itself has a long history in manufacturing, starting in shoes and expanding into tyres over decades. Its presence in both consumer and industrial goods sectors gives the joint venture strength and access to distribution networks nationwide.
The new investment also fits into broader Pakistan-China economic cooperation under frameworks that support industrial collaboration and technology transfer. Officials from both sides welcomed the project, noting its potential to deepen economic ties and support Pakistan’s industrialisation goals.
As construction begins in Sindh, industry watchers will be watching closely to see how quickly the plant can come online and begin contributing to production, exports and job creation.
