Goodyear South Africa has announced plans to invest 670 million South African rand (£32.216 million; 43.847 million euros; US$49.557 million) in increasing production of so-called high-value-added (HVA) consumer tyres at its Uitenhage manufacturing plant. Meanwhile, medium radial production currently at the location is to be relocated across the EMEA region.
Dieter Horni is stepping down as managing director of Continental Tyre South Africa (CTSA) after six years in this role, and will return to Continental’s head office in Hannover, Germany to head up the company’s Business Development portfolio for the Middle East and African region. Shaun Uys, who is currently head of marketing and sales for CTSA’s South Africa and Sub-Sahara replacement tyre business, will as of 1 August succeed Horni as managing director.
The association representing the interests of four tyre majors in South Africa would like to see anti-dumping duties imposed on cheap tyres entering the country. The South African Tyre Manufacturers Conference (SATMC), which acts as the ‘generic face’ of Bridgestone, Continental, Goodyear and Sumitomo in their dealings with government, the motor industry and the public, intends to petition the International Trade Administration Commission of South Africa (ITAC) for protection against these imports.
Marangoni S.p.A. has acquired a 25 per cent share in South Africa’s Leader Rubber Co. S.A., the Italian company reports. It describes the signing of an agreement to this effect as the “culmination of a partnership that has been ongoing for several years,” and says the objective of taking a 25 per cent shareholding is to strengthen both companies’ presence in the South African market and throughout Africa.
The Z tyre brand has held a co-ordinated countrywide launch in South Africa in association with Tyrecor, its distribution partner. Taking place in three different locations showcasing the country’s diversity to accommodate the maximum number of tyre dealers, the main event was held at the Emperor’s Palace in Johannesburg, hosted by Harjeev Kandhari, CEO of Tyrecor and Zenises, global distributor of the Z brand. The two supplementary official launch events were also hosted by Tyrecor at the Oyster Box in Durban and the Taj Hotel in Cape Town.
Cooper Tire & Rubber Company has appointed ex Apollo Verdestein European president Luis Ceneviz as its managing director – Latin America Tire Operations effective 1 March 2015. In this new role, Ceneviz will be responsible for the company’s business throughout Latin America, including Central and South America, as well as Mexico, where Cooper has a sales and marketing organization and participates in a joint venture tyre manufacturing operation near Guadalajara. He will report to Brad Hughes, Cooper’s chief operating officer.
Global alternative asset manager The Carlyle Group and South Africa’s Old Mutual Private Equity have announced their agreement to acquire 100 per cent of South African tyre retailer and wholesaler Tiger Automotive from Ethos Private Equity and the company’s founders for an undisclosed amount. Funding for this investment will come from the Carlyle Sub-Saharan Africa Fund and Old Mutual Private Equity Fund IV, and Tiger Automotive’s founders will also re-invest equity in the company. The transaction is expected to close in early 2015, subject to regulatory approvals.
According to Reuters, global asset manager the Carlyle Group has invested in South African tyre retail network Tiger Wheel & Tyre. Carlyle, together with insurer and banking group Old Mutual Plc, will acquire the stake from South Africa’s Ethos Private Equity. The deal is said to be valued at 1.75 billion rand (£101.7 million), including debt.
As reported on 17 September, Apollo Tyres’ South African subsidiary, Apollo Tyres Africa Proprietary Limited – the residual operation remaining after the sale of the main business to Sumitomo Rubber Industries in 2013 – voluntarily initiated Business Rescue Proceedings on 15 September 2014 as per the provisions of the South Africa Companies Act. In its second quarter notes, The company has now submitted a Business Rescue Plan to the South African Companies and Intellectual Property Commission (CIPC).
Apollo Tyres Ltd has initiated voluntary business rescue proceedings for its Apollo Tyres Africa Proprietary Limited subsidiary. The company has informed the BSE that a specialist has been appointed to restructure its South African operation; the specialist’s evaluation will “decide the future course of action for the company in South Africa.”
Sheffield-based Pneumatic Components Ltd – better known as PCL – says its nitrogen inflation equipment is making hefty inroads into the South African market. The company shares that it is enjoying particular success with its Nexus Compact model. PCL says this inflator is unique in that it can be fitted to the inside or outside of mobile tyre service vehicles while covering every tyre inflation application, from passenger cars to large commercial vehicles, including trucks and OTR tyres.
Annual and final quarter results for Apollo Tyres’ 2013-14 fiscal year, which ended on 31 March, show a solid increase in net profit for the India-headquartered tyre maker. In the 12 months between the start of April 2013 and the end of March 2014, the company achieved net sales of Rs 133.1 billion (£1.3 billion); this represents year-on-year sales growth of four per cent. Full-year operating profit rose 19 per cent over the previous year to Rs 19.7 billion (£197.2 million), while operating profit margin rose from 12.1 per cent to 14.8 per cent. Net profit jumped 64 per cent year-on-year to Rs 10.1 billion (£101.1 million).
Continental Tyre South Africa announced the appointment of Niel Langner as marketing manager; Jiminy-Ann Knoetze Bosman as public relations and communications manager; and Morris Naiker as national sales manager on 14 May 2014. The move is being described as a set of strategic appointments designed to strengthen the firm’s tyre sales position in the country.
Production resumed, albeit at a reduced level, at Continental’s Port Elizabeth factory in South Africa last Friday, ten days after strike action halted all production there. Workers belonging to NUMSA, the National Union of Metalworkers of South Africa, went on strike on 15 April over a pay dispute, and the limited production now taking place in Port Elizabeth is being performed by non-union members. In a statement, plant spokeswoman Nomfundo Hlela said the factory was not operating at full capacity.