Service Long March tyres lifts annual production capacity to 2 million units

Service Long March Tyres Limited (SLM) has accelerated its expansion plans by increasing its annual truck and bus radial tyre production capacity to 2 million units, a 25% increase from its previous capacity of 1.6 million tyres.

The company informed the Pakistan Stock Exchange (PSX) on Monday that the additional capacity is expected to improve its ability to meet rising demand in both domestic and international markets while supporting future revenue growth and profitability.

SLM said the expansion reflects its continued focus on scaling operations and creating long-term value for shareholders. The company expects the higher production capacity to reinforce its position in Pakistan's commercial tyre industry as demand for locally manufactured tyres continues to grow.

The latest development follows the company's successful stock market debut last month, when it raised Rs5.83 billion through an initial public offering (IPO). During the two-day book-building process, SLM sold 292.30 million shares at Rs19.95 apiece.

At the time of the listing, the company carried an estimated valuation of around $550 million. Chief Executive Officer Omar Saeed had said the company's long-term objective is to double that valuation to $1 billion within two years.

Beyond its commercial vehicle tyre business, SLM is also preparing to diversify into the passenger car segment. The company plans to establish a dedicated passenger car tyre manufacturing plant, with commercial production scheduled to begin in January 2028.

The new facility will have an initial production capacity of approximately 2 million passenger car tyres annually. The company intends to increase this to 2.5 million units in FY2029 before expanding further to 3 million tyres a year by FY2030.

Founded in 2020, Service Long March Tyres is a joint venture between Service Industries Limited, China's Chaoyang Long March Tyre Company Limited and Myco Corporation Pakistan. Commercial operations began in March 2022 at its manufacturing facility in SITE Nooriabad, Sindh, which occupies around 50 acres within a Special Economic Zone.

Since entering production, the company has established itself as a major manufacturer of truck and bus radial tyres, serving Pakistan's transport, logistics, trade and industrial sectors.