SUMITOMO RUBBER SOUTH AFRICA (PTY) LTD ANNOUNCED
"Sumitomo Rubber Industries (SRI) officially acquired Apollo Tyres South Africa (ATSA) and then registered a new company, Sumitomo Rubber South Africa (Pty) Ltd (SRSA)."
Sumitomo Rubber Industries (SRI) officially acquired Apollo Tyres South Africa (ATSA) and then registered a new company, Sumitomo Rubber South Africa (Pty) Ltd (SRSA) in December 2013. ATSA was previously owned by the India based, Apollo Tyres Limited (ATL.)
The newly formed SRSA, under the leadership of Riaz Haffejee as CEO, includes ownership of the Ladysmith passenger and light truck tyre plant, all associated employees as well as employees based in Durban. The company that remained after the transaction and the factory in Durban which had been renamed Apollo Durban (Pty) Ltd (ADPL) was then renamed Apollo Tyres Africa (ATA) and, along with its associated staff, remained under the ownership of Apollo Tyres Limited. ATA entered a business rescue process in September of 2014 and this ultimately led to the subsequent closure of the factory in Durban. After this closure by ATL, severance packages were negotiated between this company and the workforce, in consultation with the relevant union. SRSA was not and continues not to be involved in any of these consultations and subsequent disputes. SRSA would therefore like to distance the company name and the brand name, Dunlop from any protest action that may arise as this is inaccurate and misleading.
SRI is the world’s fifth largest tyre manufacturing company, with plants in Japan, China, Thailand, Indonesia and Africa as well as new plants under construction in Brazil and Turkey. The company has offices in Europe, the USA, Asia, Africa and the Middle East. As a result of the acquisition, the brand name Dunlop now belongs to SRSA for South Africa and the rest of the African continent.
This acquisition by SRI is a strategic move as part of its global expansion and development plans, thereby facilitating the procurement of an established manufacturing location on the African continent and control of the Dunlop brand rights for the whole of Africa. Furthermore SRI remains committed to investing in SRSA and to this end has committed over R1,1 Billion to an expansion plan for the Ladysmith plant.
SRI has a long history of working with the Dunlop brand – both in manufacturing and sales, so this acquisition will serve to fortify the brand’s credibility and sustainability in the market and further support the company’s distribution network and Dunlop Zone programme throughout Africa.