NEW DELHI (TIP): Apollo Tyres Ltd has said it has closed a deal with Japan’s Sumitomo Rubber Industries to sell its South African business for $60 million. According to a statement issued here, Sumitomo will take over Apollo Tyres South Africa, including the Ladysmith passenger car tyre plant and Dunlop brand rights in 32 African countries. However, Apollo will retain the Durban plant, which produces truck and bus radial tyres and off- highway tyres that are used in the mining and construction industries. Post deal, Apollo will continue to sell Apollo, Vredestein and Regal branded tyres in Africa, the company said. Both companies will undertake contract manufacturing of their respective brands at each other’s facilities to have locally manufactured products available for the market. The employees, retained by Apollo in South Africa, will work for the newly formed company, Apollo Durban (Pty) Ltd.
No job cuts
No jobs have been lost in the transaction. Apollo Tyres had first announced the deal in May this year. The company’s shares ended at Rs 80.95 on the BSE, up 0.62 per cent from the previous close.