New project aims to build $90m tire plant in Pakistan

Washington DC – Pakistan is studying the construction of a greenfield tire production factory to serve the local replacement market, which today is mainly reliant on imports.

The $92-million (€85 million) project will produce 1.4 million units of Armstrong-branded passenger car and light truck tires per year, said the World Bank-affiliated International Finance Corp. (IFC).

To be located on the outskirts of Karachi, Pakistan, Armstrong Tyres has applied for a $25-million funding from IFC, the organisation announced in a recent investment disclosure.

The shareholding of the project will be held by the Hussain and Yusufzai families of Pakistan who also own Zafar Enterprises in Pakistan and Zafco Holdings in the UAE.

Both Zafar and Zafco operate in the tire distribution business, according to IFC.

IFC said it is supporting Armstrong to enhance resource efficiency and minimise environmental impacts through its ‘responsible investing support in emerging economies’ (RISE) programme.

As part of the programme, IFC is providing “advisory services to evaluate and benchmark the plant design against global best practices.”

The consultations are aimed at reducing energy and water consumption and improving waste management systems.