Tyre manufacturer Sailun has confirmed to Tyrepress an “indirect interest” in Kings Road Tyres. While the direct players in the investment group have yet to be fully confirmed, Sailun’s indirect interest gives some indication of potential tyre industry figures in the partnership, confirmed to involve Chinese, European and North American interests. What we can currently surmise from Sailun’s involvement in the purchase of a UK wholesaler is the manufacturer’s desire to increase its foothold in the European tyre market, which has previously played second fiddle to its domestic China operations, and its stronger position in North America.
The acquisition of a controlling interest in the UK and Ireland tyre distributor and service provider by a strategic investment group was previously confirmed by KRT’s Adrian Bader, who retains an equity position. Bader also explained that the “day-to-day operation of Group businesses” remain under the control of the existing management team.
Sailun’s full statement to Tyrepress read: “With regard to the recent announcement, it is true that Sailun does have an ‘indirect interest’ as part of the investment group mentioned by KRT. The ‘Sailun Group’ of companies has diverse interests in many facets of the rubber industry from raw materials to equipment to tyre production. On an ongoing basis, the Sailun Group continues to expand and to reconsider these interests and act accordingly. Please note that KRT will continue to be run by the existing local management team and that Sailun Europe has no participation.”
Responding to Tyrepress’s request for further information, Adrian Bader, KRT’s managing director said: “The identity of our investment partners and the terms of the agreement are commercially sensitive and for that reason we are not in a position to provide further detailed information. It is however worth re-stating that the new structure provides us with the resources and backing to grow and develop the company in a very positive fashion.”
Source: Tyre Press
Published: 31 January 2014