Ghandhara Tyre and Continental End Partnership

Ghandhara Tyre & Rubber Co., Ltd. (GTR) and Continental Global Holding Netherlands B.V. (the Dutch structure within Continental AG) have terminated the agreement on technological support and royalty payments, as reported by the Pakistani tire company.

The agreement with Continental was signed in January 2018, and the new technical partner of GTR will be the Chinese company Shandong Huasheng Rubber Co., Ltd., which produces tires under such brands as Habilead, Kapsen, Taitong and Terraking.

“Our company and Continental have mutually agreed to terminate our agreement on August 31, 2024,” noted GTR, adding that the company had been searching for an alternative technology supplier for some time. It is expected that cooperation with Huasheng will help improve the efficiency of GTR's production processes.

Ghandhara Tyre & Rubber Co., Ltd. (formerly General Tyre and Rubber Company of Pakistan Ltd.) was founded in Karachi in 1963 by the American company General Tire (GT), and the following year, tire production with a capacity of 120,000 units per year was launched.

In 1977, GT sold 90% of its shares to the current owner of GTR, the local company Bibojee Services Ltd., retaining a 10% stake. In 1987, GT itself was acquired by Continental, which owned shares in GTR until 2017, when the shares were sold, after which a technological partnership agreement was signed.

GTR is capable of producing approximately 2.4 million car tires and 1.6 million motorcycle tires per year, and the company claims that in terms of size availability, its coverage of the Pakistani market is almost 70%. GTR is also present in the original equipment sector and supplies tires to brands such as Hyundai, JAC, Hino, Isuzu, Fuso, and others.