KARACHI, Pakistan — Ghandhara Tyre & Rubber Co. Ltd. — formerly General Tyre & Rubber of Pakistan — and China's Shandong Huasheng Rubber Co. Ltd. are evaluating the potential of establishing a tire-making joint venture in Pakistan.
The parties recently signed a memorandum of understanding covering the parameters of their cooperation toward setting up a JV company for manufacturing and supplying radial truck/bus and passenger tires, GTR said in a Dec. 10 filing on the Pakistan Stock Exchange
Describing Shandong Huasheng Rubber as a "leading technology service provider in China's tire industry," Karachi-headquartered GTR said the new venture would be "focused on export markets."
The formation of the JV is subject to satisfactory feasibility studies and regulatory approvals, GTR stated.
With over 4,500 employees, Shandong Huasheng Rubber operates five plants in Dongying City, Shandong Province, with a combined capacity of 18.5 million units/year for car, van and truck/bus tires. It's considered the 34th largest tire maker worldwide, according to Tire Business data, based on fiscal 2023 sales of $876 million.
Huasheng goes to market under the brand names Durun, Kapsen, Habilead, Kingboss and Roadboss.
For its part, GTR said it is Pakistan's "largest" maker of tires for cars, SUVs and 4×4 vehicles and also produces tires for light trucks, trucks/buses, two-wheelers and off-road machinery.
The Pakistan company lists its annual capacity at 2.4 million "automotive" tires and 1.6 million motorcycle tires. Fiscal 2024 sales were $73.4 million, a 37% increase over fiscal 2023.
GTR was established in 1963 by General Tire International Corp. of the U.S., with a total capacity of only 120,000 tires per annum.
In 1977, GTIC sold 90% of its shares to the present owner M/s Bibojee Services Ltd, which expanded the company's capacity fivefold over the following decade.
