November 15, 2019 (MLN): The Board of Directors of Service Industries Limited, in its meeting held on Friday, has resolved to enter into a Joint Venture Agreement with Chaoyang Long March Tyre Co. of China and Myco Corporation of Pakistan for the setting up of a greenfield project.
The project shall entail manufacturing and sale of truck and bus radial category of tyres in Pakistan to serve the progressive demand of the local market as well as its export to other countries.
According to the notification issued by the company in this regard, the equity stake of parties in the Joint Venture Company will be as follows
- Service Industries limited – 51% (with or without collaboration of associates/others)
- Long March Tyre Co. – minimum 44% (maximum 49%)
- Myco Corporation – maximum 5% (any shortfall will be contributed by Long March Tyre Co.)
The Joint Venture will be incorporated under the name of ‘Service Long March Tyres (Private) Limited’ or any other similar name.
Furthermore, the Board resolved to make long term equity investment of up to USD $30.6 million in equivalent Pakistani Rupees in the above mentioned Joint Venture Company, from time to time within a period of 3 years.
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