Apollo Tyres & Sumitomo strike deal in Africa

Apollo Tyres has announced a transaction with Sumitomo Rubber Industries (SRI), by which SRI takes over Apollo Tyres South Africa (ATSA) including the Ladysmith passenger car tyre plant. Apollo will retain the Durban plant which manufactures Truck & Bus Radial (TBR) tyres and Off Highway tyres (OHT) used in the mining and construction industries. Speaking on this development, Onkar S. Kanwar, Chairman, Apollo Tyres Ltd. noted, “This 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 they also use in many other countries across the world. Apollo retains one plant in South Africa and has the ability to develop further the markets for its global brands -- Apollo and Vredestein.” For a consideration of US$ 60 million, SRI will acquire ATSA, including the Ladysmith plant. All employees of the company, other than those in the Durban plant, will continue with ATSA. Apollo will retain the Durban plant and all employees attached to it. It may be noted that the two entities have made sure that there are no jobs lost in this entire process.