Service Long March expands output to 2 million tyres per annum

Service Long March Tyres Limited (SLM) has expanded its truck and bus radial tyre production capacity to 2 million tyres per annum, a 25% increase from 1.6 million.

“This expansion reflects the company’s continued commitment to operational growth and long-term value creation,” said SLM in a notice to the Pakistan Stock Exchange (PSX) on Monday.

“The expanded capacity is expected to enable the company to better cater to growing demand in both domestic and export markets, further strengthen its market position within the industry, and generate additional revenues and profitability for the company,” it added.

Last month, SLM raised Rs5.83 billion in its initial public offering (IPO) by selling 292.30 million shares at Rs19.95 per share in its two-day book-building process at the PSX.

At the time of its IPO, SLM was valued at around $550 million, with CEO Omar Saeed expressing a vision to transform it into a $1 billion company within two years

Incorporated in 2020 as a joint venture between Service Industries Limited, China’s Chaoyang Long March Tyre Company Limited, and Myco Corporation Pakistan, SLM commenced commercial operations in March 2022. The company operates a manufacturing facility at SITE Nooriabad, Sindh, spread over approximately 50 acres of SEZ land.

Service Long March Tyres has emerged as a key player in Pakistan’s automotive manufacturing landscape since commencing operations, focusing primarily on the truck and bus radial tyre market, which plays a critical role in supporting the country’s transportation, logistics, trade and industrial sectors.

Under its expansion strategy, SLM plans to establish a dedicated passenger car tyre production facility, with commercial operations expected to commence in January 2028.

The proposed plant will initially have an annual production capacity of around 2 million tyres, which the company aims to expand to 2.5 million units in FY2029 and 3 million units by FY2030.