JAPAN-based Sumitomo Rubber Industries (SRI) is taking over Apollo Tyres South Africa including the Ladysmith Tyre plant and Dunlop Brand rights in Africa.
The US$60 million deal, which is expected to be completed within the year to the next four months, will obtain for Sumitomo a manufacturing location in South Africa as well as control over the Dunlop brand, which it can also use in many other countries across the world. Both the companies will also undertake contract manufacturing of their respective brands at each respective facilities to have locally manufactured products available for the market.
Meanwhile, Apollo, will retain its rights to sell the Dunlop brand in 32 countries of Africa. The company will retain the Durban plant, through the Holding Company of ATSA, which manufactures truck and bus radial tyres and off highway tyres and all employees attached to it. It will continue to sell the Apollo, Vredestein and Regal brand tyres in Africa while focusing on creating and strengthening its own sales and distribution network across the continent.
The company’s capacity in India is pegged at 1400 metric tonnes a day with 75% utilisation, to 45,000 tyres/day in the car segment, 5500 tyres a day in the truck-bus radial tyres (TBR) segment whilst truck cross-ply capacity stood at 10,000 tyres a day; In Europe and South Africa its capacity utilisation is around 85% and 70% respectively.