Dunlop seeks partners to return to Nigeria
The company had suffered from inconsistent government tariff policies, some of which made nonsense of business plans predicated on production, a situation that placed importers of tyres at an advantage over genuine local manufacturers.
Though the company is yet to make its discussions with Edo State public, it has, however, intensified efforts to get technical partners.
In a notice to the Nigerian Stock Exchange (NSE), Dunlop explained that a state government is setting up an industrial park, with provision for an automobile cluster and tyre manufacturing plant.
It is worthy of note that the company’s stock was last traded in October 2018, and has been labelled by NSE as Delisting In Progress (DIP).
Dunlop also said it had recorded significant results with the Federal Government, pertaining to the conclusion of a new automotive policy which had taken into account some policies that had an adverse effect on the company.
Meanwhile, the Tyre has retained its majority holding in Pamol Nigeria Limited, its subsidiary, which manages rubber plantations.
Dunlop previously produced both car and truck tyres in its factory at Ikeja in Lagos State. This accounted for 15 per cent of tyre consumption in the country.
The remaining 85 per cent is imported into the country by big tyre importers such as Michelin, Bridgestone, Pirelli, and Goodyear as well as imports from Asia and Eastern Europe.
Hitherto its exit, Dunlop Nigeria Plc has a very rich and enviable history. The company’s origin is directly linked to John Boyd Dunlop, a Briton who invented the world’s first practical pneumatic tyre in 1888.
In 1889, a company was formed to develop the invention commercially. That company expanded rapidly internationally and spread its tentacles as far as Japan in 1909.
In-line with a 10-year strategic business plan, the company is currently marketing the business plan to potential investors, after which it would seek technical partners.
In 2005, DN Tyre spent $50 million on a truck tyre project. The Federal Government in 2006, reduced the tariff on imported tyres from 40 per cent to 10 per cent. This coupled with poor power supply led to the company shutting down operations in 2008.
In a bid to pay off N8 billion in loans, the firm in 2012, decided to sell several assets which was eventually completed in 2014.
Dunlop Nigeria Plc was established in 1961 as a wholly owned subsidiary of the Dunlop Group.
The company traded with the name Dunlop Nigeria Industries limited before the name-change in line with the policy of indigenization. The company’s primary business is manufacturing of quality tyres.
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