Japan’s Sumitomo Rubber Industries (SRI), which recently acquired the Dunlop trademark and other rights for four-wheel tyres in Europe, North America and Oceania from Goodyear Tire & Rubber, says it expects to establish the Dunlop brand as a premium tyre brand in the global market.
The acquisition price is US$526 million, the company clarified, with an additional payment of US$105 million as transition support fee for transition support such as facilitating the transition of Dunlop customers in Europe, as well as the purchase price for inventory and other at the time of closing. It excludes India, Malaysia, Singapore and Brunei for four-wheel tyres and India, Europe and Oceania for motorcycle tyres.
With the acquisition of this trademark right, except for certain regions and products, SRI says it able to operate its tyre business globally under the Dunlop brand.
Looking ahead, the company will focus on new products that incorporate SRI’s Active Tread technology (a new technology where the property of the rubber actively changes in response to moisture and temperature to suit road conditions), OE tyres for premium vehicles, and motor sports.
In addition, for the Falken brand, which has been deployed in Europe, North America, and Oceania, SRI adds it will utilise the product planning and marketing capabilities it has cultivated in each region to focus on “bold, one-of-a-kind products that appeal to its core fanbase”.
Through a dual-brand approach to business development, it aims to increase sales volume in each region and raise the proportion of premium products.
Furthermore, Dunlop will be positioned as a core brand and will advance brand strengthening activities as a joint effort between its tyre and sports businesses.
“By accelerating brand investment in motorsports and global marketing activities in tennis, we will increase the value of the Dunlop brand around the world and develop it into the brand of choice for customers,” stated SRI.