Apollo Tyres on Monday announced the closure of the transaction with Sumitomo Rubber Industries (SRI), where in SRI takes over Apollo Tyres South Africa (ATSA) including the Ladysmith passenger car tyre plant, and the Dunlop brand rights that Apollo had in 32 countries of Africa, for $ 60 million.
The announcement of the deal was made by the company in May this year.
Apollo retains the Durban plant which manufactures Truck & Bus Radial tyres and Off Highway tyres used in the mining and construction industries.
Apollo Tyres said post the transaction, it will continue to sell Apollo, Vredestein and Regal branded tyres in Africa, and will focus on creating and strengthening its sales and distribution network across the continent.
Both companies will also undertake contract manufacturing of their respective brands at each other’s facility to have locally manufactured products available for the market, it added.
Onkar S Kanwar, Chairman, Apollo Tyres Ltd said, “...Using South Africa as the base, we will now focus on brands where we own global rights, which we have already been selling in South Africa for the past few years, for the African and Latin American markets.”
The employees, retained by Apollo in South Africa, post this transaction closure, will be working for the newly formed company, Apollo Durban (Pty) Ltd.
No jobs have been lost in this transaction between the two entities - Apollo and SRI, the company clarified.