Ghandhara Tyre and Rubber Company Limited (PSX: GTYR) has signed a non-binding Memorandum of Understanding (MoU) with Shandong Huasheng Rubber Co., Ltd. (SHRC), a leading technology service provider in the tyre industry based in China. The agreement aims to explore the possibility of establishing a joint venture in Pakistan.

According to the MoU, the proposed joint venture would focus on the manufacturing, sale, marketing, and supply of truck bus radial (TBR) and passenger car radial (PCR) tyres, with a particular emphasis on export markets.

The formation of the joint venture is contingent upon the completion of satisfactory feasibility studies, obtaining internal and regulatory approvals, and the execution of definitive agreements between the two companies.

Ghandhara Tyre, a key player in Pakistan’s automotive sector, is engaged in the manufacturing and trading of tyres and tubes for automobiles and motorcycles. The potential collaboration with SHRC is expected to bring advanced technology and expertise to Pakistan’s tyre industry, boosting local production and exports.