Home Industry Dunlop mules return to Nigeria, in search of partners

Dunlop mules return to Nigeria, in search of partners

by Business News Report

DN Tyre and Rubber Plc (formerly known as Dunlop Nigeria Plc) has intensified ongoing discussions with Edo State government as part of measures to revive local manufacturing.

According to the company, the development is 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.

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. The company’s stock was last traded in October 2018 and has been labelled Delisting In Progress (DIP) by the Nigerian Stock Exchange (NSE).

According to the firm, 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, Dunlop has retained its majority holding in Pamol Nigeria Limited, its subsidiary which manages rubber plantations. 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% to 10%. 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. The transaction was eventually completed in 2014.

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