Karachi: The Sino-Pak Tire Manufacturing Joint Venture has announced its intention to invest USD 600 million in Pakistan, according to a news source. As per Dr Xu Peng, the managing director of InvestTarget, an investment and private equity bank that is the largest investor in this venture, the said consortium aims to benefit from Pakistan’s strategic location and to capitalise on the increasing demand for quality vehicle tires in the region.
According to details, this company will produce around five to six million pieces every year. Out of these, two to three million pieces will be utilised for trucks and buses, and the remaining three to four million for passenger cars. Peng revealed that the company will have no difficulty in finding customers, as Daewoo is on board as its local partner. He added that venture would become the first organisation to manufacture truck and bus tires in Pakistan. He also stated that the project had a debt-equity ratio of 70-30.
Further, he stated that at present no local truck tire manufacturer operated in Pakistan and that no company manufactured high-end, radial tires for passenger cars either. This consortium will close that gap and improve Pakistan’s economy. The ground-breaking for this project is expected to take place mid-2020.