Dubai Group Voices Interest in Conti’s Clairoix Plant

A Dubai based company has been named as a potential purchaser of Continental’s soon to be closed Clairoix factory in France. Representatives from both the tyre manufacturer and the Moaffaq Al Gaddah (MAG) Group have confirmed talks are already underway between the two parties, although specific details are still under wraps.

Conti spokesman Alexander Lührs told UAE based Gulf News the German company “can confirm the interest of both sides,” however he noted “it is far too early to talk about any details.” MAG Group vice-chairman for Strategy and Finance Fawaz Sabri commented that MAG is “in negotiation with the company to acquire the plant. We had already talked to Continental AG and the French government on our interest.

“We are very much interested in acquiring the factory,” Sabri added. “However, acquisition of an industry has to go through some complicated procedures. We will hold further discussions and in-depth studies on the factory and submit a business plan to the French Government to run the plant.”

The MAG Group has participated in the automotive spare parts business for around 30 years. Like a number of companies from the Gulf Cooperation Council region, it prospered during the recent boom time and is now seeking international assets to acquire. “The current recession has created new opportunities for us and makes these assets interesting for us,” said Sabri. “Also, with our investments, we could help save jobs and generate wealth for others.

“We have been in production of spare parts for some time under our own branding. However, these are outsourced. This would be our first major involvement in direct manufacturing,” Sabri concluded.