Apollo Tyres announces closure of transaction with Sumitomo Rubber Industries
03 Dec 2013
Apollo Tyres yesterday announced the closure of its transaction transaction with Sumitomo Rubber Industries (SRI), enabling SRI takes over Apollo Tyres South Africa (ATSA) including the Ladysmith passenger car tyre plant, and the Dunlop brand rights that Apollo had in 32 countries of Africa, for $60 million.
The company had announced the deal in May this year.
ATSA's Durban plant, which manufactures truck and bus radial tyres and off highway tyres used in the mining and construction industries would stay with Apollo.
According to Apollo Tyres, post the transaction, it would continue to sell Apollo, Vredestein and Regal branded tyres in Africa, and would focus on creation and strengthening its sales and distribution network across the continent.
It added that both companies would also undertake contract manufacturing of their respective brands at each other's facility to have locally manufactured products available for the market.
According to Onkar S Kanwar, chairman, Apollo Tyres Ltd, using South Africa as the base, the company would now focus on brands where it owned global rights, which it had already been selling in South Africa for the past few years, for the African and Latin American markets.
Kanwar further said, it had been a very eventful journey for the company in Africa, since its entry in 2006 with the acquisition of Dunlop Tires International.
He added, it had given the company a very sound understanding of the growing African market and helped it develop the market for its products in Latin America as well.
The employees, retained by Apollo in South Africa, after the transaction closure, would join the newly formed company, Apollo Durban (Pty) Ltd.
In May, Apollo Tyres had announced that it was selling its South African business along with a passenger car tyre plant.
