Continental Shows Interest In Sime Darby

Malaysian conglomerate, Sime Darby Berhad is to concentrate its tyre businesses and float it independently from the parent company (sales of around 3.2 billion US dollars). Key elements of these companies are tyre maker DMIB Berhad with a factory in Selangor and Sime Tyres Int.

with factories in Alor Setah and Kedah. A spokesman for Continental confirmed that the German tyre giant wishes to buy 30 per cent of the tyre business, and signed a letter of intent with Sime Darby Berhad on the 26th June. Continental will have the opportunity to increase its share at a later date.

This follows an earlier agreement in January between Continental and DMIB and Sime Tyres to share technical support. A former agreement between the Malaysian manufacturers and Sumitomo Rubber Industries had at that point concluded..