Apollo Tyres has decided to undergo business rescue proceedings in South Africa due to labor unrest, related issues and an uncompetitive cost structure, the tiremaker said.
“Apollo Tyres Africa Ltd. has voluntarily initiated the business rescue proceedings, and has appointed a specialist to re-structure its operations and to secure the best value for all stakeholders,” a company spokesperson said in a statement.
An evaluation by the independent business rescue practitioner will decide the company’s future course of action in the country, the statement said.
Apollo Tyres entered South Africa in 2006. Last year, the company sold much of its South African business as well as a passenger tire plant to Sumitomo Rubber Industries.
Following the transaction, Apollo maintained possession of its Durban plant, which manufactures TBR and OTR tires. The company also continued to sell Apollo, Vredestein and Regal branded tires in Africa.