Kalutara, Sri Lanka – Continental AG has recently acquired full ownership of Sri Lankan solid tire maker Eu-Retec (Pvt) Ltd, the German group has confirmed to ERJ.
The joint venture, previously 51% owned by Continental, has been producing solid tires in Kalutara since 2009, a company spokeswoman said in a written statement to ERJ.
Deshamanya Anurath Abeyratne, founder and chairman of SPA Group of companies, was the 49% owner and managing director of Eu-Retec (Pvt) Ltd.
The acquisition is part of Continental‘s growth strategy ‘Vision 2025’ and group plans to expand in specific markets over the coming years, the representative explained.
“We want to further strengthen our strong position in the solid tire business and extend our complete portfolio to the Americas and Asia,” she noted.
In addition, Continental said that the “strategic decision” to acquire Eu-Retec would enable it to optimise costs and save time for customers within its commercial speciality tires segment.
“We are now in the process of integrating the plant into the Continental footprint. This is a complex process which will require some more time,” the spokeswoman added.