Carlisle, UK – Motorsport tire supplier Technology Sinon UK Ltd has filed for insolvency, according to an administrator statement lodged by insolvency consultants Leonard Curtis.
In the 4 July filing, Leonard Curtis said Technology Sinon – formerly DMACK Global Ltd– had been unable to pay its debts and was declared insolvent at the end of April.
DMACK made its entry to motorsport in 2011, mainly producing tires in partnership with China’s Shandong Yongtai Chemical Group, in Dongyng, which went into administration last August.
From 2011 to 2017, DMACK was one of the two authorised FIA World Rally Championship tire suppliers.
In 2014, DMACK was the victim of fraudulent activity in China, said the administrator, noting that the subsequent legal case had “a significant impact” on the business – including stock shortages, cancelled orders, large discounts and high legal costs.
DMACK announced in April 2016 that it was moving production to the UK through Cooper Tire & Rubber Co., which is itself currently in the process of discontinuing passenger car tire production in the country.
“Exceptional costs of moving production to the UK, along with limited production caused the company to be loss making from 2016,” the statement added.
The overall impact of the legal battle and the company’s losses are estimated at £13 million, including a £600,000 debt to Cooper Tire.
According to Leonard Curtis, attempts to sell the business and its assets did not bear fruit, as three interested parties did not make any offer after receiving sale packs in early spring.
DMACK’s Italian subsidiary DMACK SRL has acted as “qualifying floating charge holder” during the process.
As previously reported by ERJ, DMACK is considering moving production of tires to Marangoni SpA's manufacturing site in Rovereto, northern Italy.
In a written statement to ERJ, Marangoni has confirmed that talks between the two companies, which began last year, are still ongoing.
ERJ is in contact with DMACK and Marangoni for comment on these developments.