KUALA LUMPUR (May 14, 2012)—Continental A.G. has purchased the remaining 30 percent interest it didn't own in its Continental Sime Tyre Sdn. Bhd. tire venture in Malaysia from partner Sime Darby Allied Products Bhd.
Financial terms of the deal weren't disclosed. Continental paid $31 million in 2003 for a 30-percent in the Sime Darby unit, then increased its share to 51 percent in 2004 and then to 70 percent in 2006 for undisclosed sums.
Continental will rename the venture Continental Tyre Malaysia Sdn. Bhd. Conti said the transaction underlines the long term interest and the commitment of Continental to the Asia Pacific Region.
Conti operates two tire plants in Malaysia in Petaling Jaya, for truck and bus radial, and agricultural, industrial and OTR tires, and Alor Satar, for passenger and light truck radials and motorcycle tires, along with a technology center at the Petaling Jaya factory.
The company has 2,500 employees and operates the largest tire dealer distribution network in Malaysia, including more than 1,200 outlets.