LAHORE: In a notification to the Pakistan Stock Exchange (PSX), General Tyre and Rubber Company of Pakistan Limited (GTR) announced the renewal of its existing Royalty and Technical Services Agreement (RTSA) with its technology partner Continental Global Holding Netherlands for a term of seven years, effective January 1, 2018.
The RTSA has been renewed for the last time and GTR has begun its search for an alternative technology supplier that will replace Continental in seven years time.
“The management of General Tyre and Rubber Company of Pakistan Limited (“GTR”) is pleased to announce that our technology partner Continental Global Holding Netherlands B.V. (“Continental”) has renewed the existing Royalty and Technical Services Agreement (“RTSA”) with the company for a term of seven (7) years, effective from 1 January 2018. RTSA sat out that this will be the last and final term of the RTSA and GTR will have to find a suitable substitute technology supplier under a definitive Replacement Plan envisaged in RTSA. Pursuant to the Replacement Plan, GTR is already in negotiations with a couple of leading technology suppliers in the tyre industry and is hopeful of finding a substitute of Continental in due course. We will keep our members/stakeholders updated concerning any further developments in this regard,” the notification read.
At the time of filing of this report on Wednesday General Tyre and Rubber Company of Pakistan Limited was trading at Rs190.01 up Rs0.84 or 0.44 per cent from start of day.
