Sri Lanka’s Eu-Retec to Expand Range Under Conti Alliance

The partnership operating between Watts Industrial Tyres and Continental AG since late 2004 has been replaced by a new strategic alliance with Sri Lankan manufacturer Eu-Retec (Pvt) Limited, who formerly produced tyres for Conti as part of the Watts arrangement. Watts held a 50 per cent share in Eu-Retec until earlier this year.

Continental has officially announced the formation of a joint venture with Eu-Retec, an arrangement in which Conti will take the majority shareholding. Commenting on the joint venture, Dr. Michael Märtens, managing director of the Continental Industrial Tires business unit, said “this agreement gives us the foundation to improve our market position in the growth region of Asia and US dollar markets such as the United States.”

Eu-Retec says it will now set about expanding its product portfolio, and the company’s industrial tyres are already being sold by Conti in Asia and North America. European sales are not planned at this stage.