STARCO divests South African subsidiary

Wednesday 14th September 2016 | 0 Comments

 

Four years ago, STARCO established a new subsidiary in South Africa together with its local distributor, Mac and TireCity. The company has now decided to divest its 50 per cent shareholding and exit South Africa in order to strengthen its focus on its core business and OEM customers across Europe. STARCO’s shareholding has been transferred to a newly-established company owned by Mac and TireCity.

The new company will take over the entire business including customers, facilities, employees and various legal obligations. STARCO states that daily business for customers, employees and other partners will remain the same, and it will continue to supply the South African market with solid tyres from its factory in Sri Lanka.

“This is a natural step in our 2020 Strategy where key elements are aligning organisational setup, focusing on core business and increasing profitability,” says STARCO chief financial officer Karsten E. Petersen. The company’s 2020 Strategy maps out a dedicated focus on the original equipment market and an aspiration to be even more recognised as a strong partner in wheel and tyre solutions.

In addition to continuing to supply South Africa with forklift tyres from Sri Lanka, STARCO intends to pursue and develop new opportunities in other forklift truck markets. “We will reinforce our sales activities in new markets and continue to develop our relation and collaboration with some of the largest forklift truck manufacturers in Europe,” explains Thomas Ballegaard, chief commercial officer at STARCO. “We have extensive experience in the tyre business, high quality products and a strong manufacturing setup to support current and new customers.”

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Category: Company News, International News