Recently, the German manufacturer Continental Group announced a new asset acquisition action. It has acquired a 49% stake from the former general manager of the Sri Lankan tire factory Eu-Retec. The specific transaction amount has not been disclosed. After the equity delivery is completed, Eu-Retec will become a wholly-owned subsidiary of Continental.
Since 2009, Continental has become a shareholder of the tire factory. After the acquisition, the company plans to make the tire factory more cost-effective and able to radiate tire users with specific needs in the surrounding area.
A spokesperson for the company said Continental hopes to further consolidate its position in the solid tire market and expand the product network to Asia and the Americas.
He added that the acquisition is part of Continental's “Vision 2025” growth strategy, and the integration of the plant into the Continental Group's system is a complex process that will take some time to achieve.
Eu-Retec is a leading manufacturer of new solid tires, rubber tracks and bogie wheels for use in forklifts, trucks and other mobile equipment.