KALUTARA, Sri Lanka—Continental A.G. has acquired full ownership of Sri Lankan solid tire maker Eu-Retec (Pvt) Ltd., buying the 49 percent stake it didn't own from the company's managing director.
The acquisition is part of Continental's "Vision 2025" growth strategy, and the company plans to expand in specific markets over the coming years, a Continental representative said, without disclosing financial terms.
Conti has been a joint venture partner of Eu-Retec since 2009, saying at that time the venture was formed to supply customers in North America and Europe with solid tires.
Deshamanya Anurath Abeyratne, founder and chairman of SPA Group, was the 49 percent owner and managing director of Eu-Retec, which was founded in 1999.
"We want to further strengthen our strong position in the solid tire business and extend our complete portfolio to the Americas and Asia," the spokesperson noted
In addition, Continental said that the "strategic decision" to acquire Eu-Retec would enable it to optimize costs and save time for customers within its commercial specialty tires segment.
"We are now in the process of integrating the plant into the Continental footprint. This is a complex process which will require some more time," the spokesperson added.
The company also makes press-on bands and rubber tracks for agricultural/industrial uses and sells ground rubber as well, according to its website.