Post by Trade Coach on Jul 30, 2017 18:50:34 GMT 1
DUNLOP’S CESSATION OF DOMESTIC PRODUCTION SOME YEARS BACK STILL HUNTS NIGERIAN TYRE MARKET
Dunlop Nigeria Plc, the tyre manufacturing giant of yesteryears, has long shut down their domestic production, replacing it with tyres imported from South Africa. As expected and witnessed, many lost their jobs and contracts were terminated. But beyond the resultant effects, has there been any impact on the tyre market in Nigeria?
Forty-six years after commencing operations in the West African Sub-Region with a production base in Nigeria, Dunlop Nigeria Plc, the then only tyre manufacturing company after Michelin went out of production some years ago. It succumbed to the pressure of persistent infrastructural decay in Nigeria, coupled with the low then low import tariff structure of government and shut its production line in the country.
The company went into agreement with Dunlop South Africa, owners of Apollo Tyre, for the marketing and distribution of their products in Nigeria. Consequently, it went ahead to change their name to DN Tyre and Rubber Plc.
The inability of the relevant government agencies to generate sufficient power no doubt pulled the biggest plug on this decision of the tyre manufacturers.
Dunlop, according to reports spent a whooping one hundred and fifty million naira annually to generate power for its operations; an expenditure pundits say should have cost an average of less than forty- million naira had power generation not been an insurmountable task for the authorities concerned.
In addition to this staggering sum are cost of procuring raw materials one of which was the carbon black which was supposed to come from the local refineries, payment of staff salaries and multiple taxes.
Dunlop Nigeria Plc, the tyre manufacturing giant of yesteryears, has long shut down their domestic production, replacing it with tyres imported from South Africa. As expected and witnessed, many lost their jobs and contracts were terminated. But beyond the resultant effects, has there been any impact on the tyre market in Nigeria?
Forty-six years after commencing operations in the West African Sub-Region with a production base in Nigeria, Dunlop Nigeria Plc, the then only tyre manufacturing company after Michelin went out of production some years ago. It succumbed to the pressure of persistent infrastructural decay in Nigeria, coupled with the low then low import tariff structure of government and shut its production line in the country.
The company went into agreement with Dunlop South Africa, owners of Apollo Tyre, for the marketing and distribution of their products in Nigeria. Consequently, it went ahead to change their name to DN Tyre and Rubber Plc.
The inability of the relevant government agencies to generate sufficient power no doubt pulled the biggest plug on this decision of the tyre manufacturers.
Dunlop, according to reports spent a whooping one hundred and fifty million naira annually to generate power for its operations; an expenditure pundits say should have cost an average of less than forty- million naira had power generation not been an insurmountable task for the authorities concerned.
In addition to this staggering sum are cost of procuring raw materials one of which was the carbon black which was supposed to come from the local refineries, payment of staff salaries and multiple taxes.
