DN Tyre and Rubber Plc (formerly known as Dunlop Nigeria Plc) in a notice released to the Nigerian Stock Exchange recently gave an update on its restructuring.
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. The policy is in the process of being forwarded to the National Assembly for legislation.
In addition, DN Tyre had also developed a 10-year strategic business plan, to enable it to return to local manufacturing. The company was marketing this plan to potential investors, after which it would seek technical partners.
The firm was also in serious discussions with a state government which was setting up an industrial park, with provision for an automobile cluster and tyre manufacturing plant.
The company had also retained its majority holding in Pamol Nigeria Limited, its subsidiary which manages rubber plantations.
The company’s struggles
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.
The company’s stock was last traded in October 2018 and has been labelled Delisting In Progress (DIP) by the Nigerian Stock Exchange (NSE).
About the company
DN Tyre and rubber Plc (formerly known as Dunlop Nigeria Plc) was established on the 21st of October 1961 and commenced business in February 1963. The primary business of the firm is the sale of vehicle tyres and tubes.