Ghandara Tyre Ends 7-Year Partnership With Dutch Supplier, Signs New Deal With Chinese Company

Ghandhara Tyre & Rubber Company Limited (PSX: GTYR) and Dutch firm Continental Global Holding Netherlands B.V. have ended their Royalty Technical Services Agreement before its actual expiration (December 2024). The original 7-year agreement, which was inked in January 2018, will now conclude on August 31, 2024. At the same time, the company also announced that it has entered into a Technical Services Agreement with Shandong Huasheng Rubber Co., Ltd. (SHRC), effective from September 01, 2024, for 7 years, subject to obtaining necessary regulatory approvals. “It is hereby conveyed that the Company and Continental Global have mutually agreed to conclude and extinguish the said agreement with effect from August 31, 2024,” the stock filing stated. This marks the end of a partnership that began in January 2018, during which Ghandhara Tyre had planned to explore alternative technology suppliers in the tyre industry. SHRC is a leading technology service provider in the tyre industry, based in the People’s Republic of China. The Technical Services Agreement with SHRC is expected to enhance the Company’s tyre manufacturing processes by leveraging SHRC’s advanced technical expertise and proprietary know-how. The Company is engaged in the manufacturing and trading of tyres and tubes for automobiles and motorcycles. GTYR’s scrip at the bourse closed at Rs. 45.5, up 7.72 percent or Rs. 3.26 with 3.36 million shares on Monday.