Karachi: Speaking to The News Eyes, Omar Saeed, Chief Executive of Service Long March Tires, a company listed on the Pakistan Stock Exchange, said that truck tires manufactured in Pakistan are witnessing strong demand in premium international markets. He revealed that the company exported tires worth $70 million during the current fiscal year and expressed confidence that Service Long March would surpass $100 million in exports in the next fiscal year.
During the ceremony marking the commencement of trading of Service Long March Tires shares on the Pakistan Stock Exchange, Omar Saeed told The News Eyes that the company has so far invested $300 million and plans to invest an additional $120 million. The new investment will be financed through proceeds raised from the Initial Public Offering (IPO), taking the company’s total investment to $420 million.
He said that Service Long March possesses the most advanced tires manufacturing technology available globally, which is why its tires are being sold in premium markets such as the United States and Brazil. As a result, the company does not need to target low-margin markets in Africa. He added that 40 percent of the company’s production is exported while 60 percent is sold domestically in Pakistan. However, demand for its tires is so strong that the entire production could potentially be exported. According to him, one out of every six truck tires sold in Pakistan is manufactured by Service. The company currently has an annual production capacity of two million tires.
Discussing future plans and the utilization of IPO proceeds, Omar Saeed said that the company currently operates a plant dedicated to manufacturing truck tires. Encouraged by its success, Service Long March is now preparing to establish a new facility for producing passenger car and SUV tires. The funds raised through the IPO will be used to finance this expansion.
He explained that the new passenger car and SUV tires manufacturing plant will be built adjacent to the existing facility in Nooriabad. Construction is expected to take approximately one and a half years, with completion targeted by December 2027. One year after production begins, the company expects to offer a complete range of tires, from the smallest passenger cars to SUVs.
Omar Saeed noted that Pakistan offers a highly favorable environment for tires manufacturing, primarily due to its relatively low labor and energy costs. While labor costs in China continue to rise, Pakistan still enjoys a competitive advantage. He added that despite lower labor costs, the company has ensured that its workforce meets international standards through training provided by Chinese experts.
Regarding energy costs, he said that the Nooriabad region is located near a wind energy corridor, enabling the company to operate its own wind turbines. In addition, solar energy is being utilized during daylight hours to further reduce electricity costs. As a result, the company relies only minimally on grid electricity, bringing its energy costs in Pakistan to levels comparable with those in China. Speaking about tires technology, Omar Saeed said that tubeless radial tires now dominate the market because they offer longer life and better fuel efficiency than traditional tube-type tires. Consequently, radial tires have become the preferred choice worldwide, while the market share of tube-type tires has declined to around 10 percent or even less.
