The Sino-Pak Tire Manufacturing Joint Venture is “an import substitution opportunity” that seeks to leverage Pakistan’s locational advantage as well as growing market for vehicle tyres, said Dr Xu Peng, Managing Director of InvestTarget – the investment bank and private equity fund which is the largest investor in the consortium.
The company will aim to produce five to six million pieces every year, 2-3m of which will be for trucks and buses and 3-4m for passenger cars. “We will start with the trucks and buses segment” Peng says, “because nobody is producing these in Pakistan and there is growing demand.” With Daewoo as the local partner, there should be no difficulty finding the first customer.
