Ghandhara Tyre to partner with Chinese firm for joint venture

KARACHI: Ghandhara Tyre and Rubber Company Limited (GTYR) has announced a strategic collaboration with Shandong Huasheng Rubber Co, Ltd (SHRC), a leading Chinese technology service provider in the tyre industry, to explore the establishment of a joint venture in Pakistan.

The development was disclosed in a notice issued to the Pakistan Stock Exchange (PSX) on Tuesday.According to the notice, GTYR has entered a non-binding memorandum of understanding (MoU) with SHRC to evaluate the feasibility of a joint venture focused on the manufacturing, sale, marketing and supply of truck bus radial and passenger car radial tyres, with a particular emphasis on export markets.

“The establishment of the joint venture company is contingent upon the completion of satisfactory feasibility studies, obtaining internal and regulatory approvals, and the execution of definitive agreements,” the notice stated.

GTYR, previously known as The General Tyre and Rubber Company of Pakistan Limited, was incorporated in 1963 and is engaged in the manufacturing and trading of tyres and tubes for automobiles and motorcycles.

SHRC, founded in 1983 in Dongying City, China, has achieved a compound annual growth rate of 18 per cent over the past three decades. The company is recognised as a global top-tier enterprise, boasting assets exceeding 5 billion yuan. This collaboration marks a significant step for GTYR in strengthening its position in the tyre industry, using SHRC’s advanced technology and expertise to expand into export markets.