Karachi, December 10, 2024 – A Chinese company has taken a significant step toward fostering industrial collaboration by exploring a joint venture (JV) to manufacture tyres in Pakistan.
In a disclosure to the Pakistan Stock Exchange (PSX) on Tuesday, Ghandhara Tyre and Rubber Company Limited announced signing a non-binding Memorandum of Understanding (MoU) with Shandong Huasheng Rubber Co. Limited (SHRC), a renowned technology leader in China’s tyre industry. The proposed JV aims to produce, market, and export truck bus radial (TBR) and passenger car radial (PCR) tyres, focusing on international markets.
The venture’s feasibility hinges on thorough studies, regulatory approvals, and final agreements. “The formation of the joint venture company is contingent on satisfactory feasibility studies, internal and regulatory approvals, and execution of a definitive agreement,” the statement noted.
About Ghandhara Tyre and Rubber Company Limited
Established in 1963 in Karachi as The General Tyre and Rubber Company of Pakistan, Ghandhara Tyre started production in 1964 with a modest capacity of 120,000 tyres annually. Initially set up by General Tire International Corporation (GTIC) of the USA, the company underwent significant ownership and capacity transformations.
In 1977, GTIC sold 90% of its shares to Bibojee Services Ltd., retaining 10%, which was later acquired by Continental AG, Germany’s leading tyre manufacturer, in 1987. Under Continental’s guidance, the company expanded its technical capabilities, adopting advanced training, materials, and quality standards. By 1985, its production capacity had surged to 600,000 tyres per year.
Ghandhara Tyre has since rebranded its flagship product line from General Tyre to GTR Tyre, aiming to appeal to Pakistan’s growing middle-class youth market. This strategic shift aligns with evolving consumer preferences for modern, dynamic brands.
Market Implications
The collaboration between Ghandhara Tyre and SHRC is poised to strengthen Pakistan’s industrial base, attract foreign investment, and enhance export potential. The initiative reflects a broader shift in Pakistan’s manufacturing sector toward innovation and global competitiveness.
