Apollo Tyres on Wednesday said it has sold Apollo Tyres South Africa (ATSA), including the Ladysmith passenger car tyre plant, to Japan-based Sumitomo Rubber Industries (SRI) for $60 million.
The company will, however, retain the Durban plant, which manufactures truck and bus radial tyres and off-highway tyres used in the mining and construction industries.
All employees of the company, other than those in the Durban plant, will continue with ATSA, the company said in a statement. Both the companies have made sure no jobs were lost in this entire process.
Apollo Tyres had acquired the Durban, South Africa headquartered Dunlop Tyres International in 2006, and renamed it Apollo Tyres South Africa Pty Ltd.
“The partnership with SRI is a win-win situation for both organisations. SRI gets a manufacturing location on the continent and control over the Dunlop brand, which it can also use in many other countries across the world,” Onkar S. Kanwar, Chairman, Apollo Tyres Ltd said.
He said the remaining plant in South Africa had the ability to develop further the markets for its global brands Apollo and Vredestein.
The company 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, he said. Both the companies will also undertake contract manufacturing of their respective brands at each other’s facilities to have locally manufactured products available for the market, he added.
The company holds the rights to sell the Dunlop brand in 32 countries of Africa.