A new collaboration is on the cards with Sino-Pak Tire seeking to explore import substitution prospects in the country. The local stakeholder in this venture is MSD Tires and Rubber, which manages a wholesale business in Pakistan.
Officials from this joint-venture have stated that the partnership aims to tap the increasing demand for vehicle tires in the country coupled with its locational edge. The majority shares of this venture are held by the investment bank.
The partnership is looking into investing close to $600 million in the Pakistani market and setting up its production plant in either Karachi or Gwadar with a signed agreement between M/s Doublestar, MSD Tyre and Daewoo Pakistan Express Bus Service Limited already in place. They are hoping to produce 6 million tires annually with half for cars and the rest for trucks and heavy-duty vehicles.
The joint project is already forecasting an export potential for tires from Pakistan and according to it, tires manufactured here can be exported to Africa and Central Asia.
