Financial Daily from THE HINDU group of publications
Friday, Mar 10, 2006
Financial Daily from THE HINDU group of publications Friday, Mar 10, 2006 |
|
|
|
|
|
|
|
Corporate
-
Announcements Dunlop Zimbabwe downs shutters Pratim Ranjan Bose
Kolkata , March 9 Dunlop Zimbabwe, a subsidiary of Dunlop International (better known as Dunlop South Africa), proposed to be taken over by the Indian tyre major Apollo Tyres Ltd, has downed shutters owing to a foreign exchange crisis. The company is heavily dependent on raw material imports. Though Apollo Tyres has already reached a consensus with Dunlop International on the proposed acquisition, the takeover is yet to be approved by the Competition Commission of South Africa.
stake in Zimbabwe unit
Dunlop International controls 75 per cent in the sole tyre manufacturing facility in Zimbabwe. Confirming the news of the closure of Dunlop Zimbabwe, an Apollo Tyres spokesperson told Business Line that this was the second time the Zimbabwe-based company had pulled down its shutters in the last six months. On whether Apollo Tyres foresees a turnaround of the company following the takeover, he said the shutdown was triggered by the fragile economic conditions in Zimbabwe leading to a foreign exchange crisis and shortage of raw material. "The problem is unlikely to be resolved unless Zimbabwe's economic condition improves," he said. According to reports available with the Zimbabwean media, over 820 workers stand to lose their jobs owing to the closure. This apart, the closure is expected to affect over 30,000 people engaged in the downstream industries. When asked whether Apollo Tyres was currently controlling the management of Dunlop International, the spokesperson said, "Technically we do not own the company as the competition commission of South Africa is yet to approve the deal."
More Stories on : Announcements | Forex | Tyres
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|