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Two tire makers in Africa close

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NDOLA, Nigeria (Aug. 31, 2009)—Africa has lost two tire makers in past year, as Dunlop Nigeria P.L.C. has ceased tire manufacturing and General Tyre East Africa Ltd. has failed to find new investors to reopen.

Dunlop Nigeria, a tire maker for the past 46 years, has revamped itself to become DN Tyre & Rubber P.L.C., an importer and distributor of Dunlop-brand tires in Nigeria.

The company cited Nigeria's "persistent infrastructural decay" and low import tariffs for its decision. It had scaled back manufacturing a year ago and noted Group Michelin ceased manufacturing in Nigeria two years ago for similar reasons.

Israel's Pelmer Engineering is coordinating the sale of Dunlop Nigeria's tire plant and production equipment, which includes machinery suitable for making car, light van, truck and farm tires of both radial and bias-ply construction.

With the cessation of tire production, DN Tyre has renegotiated its relationship with Apollo Tyres South Africa (Pty.) Ltd. from a technical know-how licensing to a "more profitable and realistic arrangement" of distributing Dunlop-brand tires in Nigeria.

Arusha, Tanzania-based General Tyre East Africa had suspended manufacturing a couple of years ago and was trying to find new investors to get it back on its feet.

The Tanzanian government, which owned 62 percent of the company, reportedly agreed to compensate workers for at least part of their unpaid salaries, according to local news reports.

The government said it would take nearly $30 million to reopen the factory, which had been in operation since 1962.

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Previous | Published February 1, 2019

What issue concerns you most heading into 2019?

The threat of more tariffs.
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