Ghandhara Tyre ends agreement with Continental, partners with Chinese firm

Ghandhara Tyre and Rubber Company Limited has officially announced the conclusion of its Royalty Technical Services Agreement with Continental Global Holding Netherlands B.V., effective August 31, 2024, according to a notice sent to the local bourse on Monday. 

The agreement, originally renewed in 2018, was set to run for a period of seven years, concluding in December 2024. However, the two companies have mutually agreed to terminate the contract ahead of schedule.

In a move to enhance its tyre manufacturing processes, Ghandhara Tyre has entered into a new Technical Services Agreement with Shandong Huasheng Rubber Co., Ltd. (SHRC), a leading technology service provider in the tyre industry based in China. 

This new agreement will take effect from September 1, 2024, and will also span seven years, subject to necessary regulatory approvals.

The company said that the partnership with SHRC is expected to bring advanced technical expertise and proprietary know-how to Ghandhara Tyre, strengthening its manufacturing capabilities in the competitive tyre industry.