Apollo Tyres today announced the closure of its transaction with Sumitomo Rubber Industries (SRI), with SRI taking over Apollo Tyres South Africa (ATSA). The deal includes the Ladysmith passenger car tyre plant, as well as the Dunlop brand rights previously held by Apollo in 32 African countries, for US$ 60 million. Apollo will retain the Durban plant that manufactures truck and bus radial (TBR) tyres and off highway tyres (OHT) for mining and construction industries.
Despite the agreement, Apollo Tyres will continue to sell the Apollo, Vredestein and Regal tyre brands in Africa. Both companies will also undertake contract manufacturing of their respective brands at each other’s facilities, to ensure that locally manufactured products are available for the market.
Speaking on the occasion, Onkar S Kanwar, Chairman, Apollo Tyres Ltd said that the company has had an eventful journey since it entered Africa in 2006 by acquiring Dunlop Tires International. He felt that this had given the company a sound understanding of the growing African market and helped them develop the market for its products in Latin America as well. The company will use South Africa as the base and will focus on brands where it owns global rights.
Apollo continues to retain some employees in South Africa post this transaction, and these will work for the newly formed company, Apollo Durban (Pty) Ltd. The company stated that no jobs had been lost.
Story: Gaurav Nagpal
