Dunlop explains N1.17b loan, takes delivery of imported tyre
Category: Investors NewsBeat
By Moses Ebosele
DN Tyre and Rubber Plc (formerly Dunlop Nigeria Plc) has taken delivery of several units of imported Dunlop tyres, as it business diversification agenda hit the fast lane.
The tyres, which arrived the country in three consignment, according to the company, is designed to bridged the gap created by the closure of its production line in Nigeria, recently.
The Group Managing Director of DN Tyre and Rubber Plc, Mohammed Yinusa, explained in an interview with The Guardian, on Wednesday that the decision to import was a last resort, adding that the company was still optimistic that a bail-out may come from the Federal Government.
He also used the opportunity to deny media reports that the company has relocated its operations to Ghana.
Making reference to the $8 million (about N1.17 billion) loan it allegedly secured from the Economic Community of West African States' Bank for Investment and Development (EBID), Yinusa said the company only secured approval for the loan, adding that the offer was later turned down based on the turn of events.
He explained that the decision not to collect the money was sequel to the company's decision to stop further investment in tyre production for now.
The Guardian gathered that the company intends to expand its operations in the agricultural sector, coupled with massive importation of tyres.
The company's Chairman, Mr. Dayo Lawuyi, explained at an extraordinary general meeting in Lagos recently that the name of the company was changed from Dunlop Nigeria Plc to DN Tyre & Rubber Plc because "it would be improper to wait and do nothing.
According to him, the company, after 46 years of manufacturing "top quality tyres", has re-defined its relationship with Apollo Tyres of South Africa, franchise owners of the Dunlop brand in Africa, by giving up the technical know-how arrangement it had with it in exchange for a more profitable and realistic arrangement of being distributors of Dunlop brand of tyres, in Nigeria.