DURBAN, South Africa—Apollo Tyres Ltd. is conducting a review of its activities in southern Africa to “secure the best value for all stakeholders,” the company said recently.
Durban-based Apollo Tyres Africa (Pty.) Ltd. has initiated “business rescue” proceedings, which includes appointing an independent business rescue practitioner to evaluate the business's operations and recommend a course of action for the company.
Apollo derived 4.5 percent of its global sales and 0.5 percent of operating income in the quarter that ended June 30 from its activities in Africa, down measurably from a year ago before it sold the Dunlop brand-related assets in Africa to Sumitomo Rubber Industries Ltd. The unit is on track for sales of about $100 million this year.
That $60 million deal included Apollo's car and light truck tire factory in Ladysmith, South Africa, the distribution and sales network, the head office and sales/distribution teams and the rights to produce and sell Dunlop-brand tires in 30 African countries and two countries in the Indian Ocean region.
Apollo retained ownership of a truck/bus and OTR tire plant in Durban. At the time the company said it intended to continue being active in the region with its Apollo, Vredestein and Regal brands.
The firms also agreed to produce each others' respective brands under contract manufacturing terms so as to have locally made products available for the market, Apollo said.
Apollo has been active in South Africa since 2006 when it bought the business known then as Dunlop Tyres International (Pty) Ltd.