Dunlop Nigeria to Cease Local Production
At Dunlop Nigeria’s Annual General Meeting on December 2 the company formally announced it will end local tyre production. This announcement comes half a year after production was cut back, and operating conditions within Nigeria, including an unreliable power supply, are said to be key factors behind the decision.
During the 2007 financial year Dunlop Nigeria recorded a net loss of NGN 2 billion (£10.88 million). Company chairman Dayo Lawuyi told shareholders that Dunlop will not continue to expose its investments and assets to losses. “It is therefore with utmost regret that your company will be following the steps of others by ceasing manufacturing operations in our factory,” Mr. Lawuyi was quoted by the Lagos based Daily Independent newspaper as saying. “In that event, the attendant rationalisation and restructuring of staff strength will be carried out to ensure an orderly transformation from our current operations.”
According to the Daily Independent, over one million people currently directly or indirectly earn a living from Dunlop Nigeria. Shareholders at the AGM called for the resignation of the company’s directors by the next financial year if they are not able to reverse Dunlop Nigeria’s fortunes, reported the Nigerian Tribune. They also called for the company’s closure should it fail to pay them a dividend by the next financial year.