Investment to help Dunlop OE business in South Africa

One in every five new vehicles on South African roads runs on Dunlop tyres and the Sumitomo Rubber South Africa (SRSA) production facility in Ladysmith supplies original equipment tyres to Toyota, Nissan, Isuzu, Hino, Tata, Scania and UD Trucks. Backed by parent company Sumitomo Rubber Industries, the local subsidiary has announced a “multi-billion rand investment project” to meet demand from OEMs.

The R1.7 billion (£71.8 million, US$87.3 million) investment covers the installation of new plant equipment and machinery, including a new mixer, tread line and sidewall line. Once operational, these will increase passenger car tyre manufacturing capabilities, efficiencies and product offering to further support the original equipment market. This latest project follows SRSA’s multi-billion rand investment in 2018 in a state-of-the-art 180,000m square metre truck and bus radial factory at the plant, facilitating local manufacture of these tyres.

Larger industry impact

“With the backing of our parent company, we are investing significantly into our passenger car radial production facility to make a larger impact in the automotive industry,” shares Lubin Ozoux, chief executive officer of SRSA. “The plant will be able to run a wider set of products, producing more tyres that meet and exceed OE specifications, and that are safety-tested for all South Africans. At the same time, it gives us the opportunity to continue our investment in our local community and municipality, creating a vibrant environment for us all to thrive.”

Ozoux adds that the machinery and optimised production processes will also reduce the plant’s environmental impact. “The new equipment will improve current process capability and decrease our overall plant waste by over 60 per cent once the investment is complete. Power consumption will be significantly reduced, and the equipment will also have the capability to produce very low rolling resistance tyres that will meet help meet future emissions requirements for OE manufacturers who choose to use our products. Our new mixer, with improved technology, will result in an energy saving of approximately 300KWH.”

Strong regional presence

SRSA shared news of the investment during an event held to commemorate the 50th anniversary of its Ladysmith manufacturing plant, which first opened its doors in October 1973. SRSA distributes Dunlop tyres made in the plant as well as Falken brand tyres, holding a strong market share in the region with a branded presence in 23 African countries.

Speaking during a visit to the plant on Monday 2 October, Ebrahim Patel, South Africa’s Minister of Trade Industry and Competition, said “I welcome today’s announcement of a new investment of R1.7 billion. This investment will provide a boost to local production, strengthen the factory’s output, and support local jobs. Furthermore, the new investment will aid in the modernisation and improvement of the plant. It also marks a significant step toward achieving President Ramaphosa’s R2 trillion target for new investments over the next five years.

“South Africa has an 88-year history of tyre manufacturing, and this plant is Africa’s largest tyre producer,” Patel added. “The investment announced today serves as a clear signal of the confidence that international investors have in South Africa and reflects the progress we have made with the SA Automotive Master Plan.”

Pictured at the 50th anniversary of the Dunlop Ladysmith plant were (l-r) Lubin Ozoux (CEO of SRSA); Inkosi Ntandoyenkosi Shabalala (Mayor of Uthukela District Municipality); Nomalungelo Gina (Deputy Minister of Trade, Industry and Competition); Satoru Yamamoto (President of Sumitomo Rubber Industries); Ebrahim Patel (South Africa’s Minister of Trade Industry and Competition); Ushio Shigeru (Ambassador of Japan to South Africa); Cllr Zama Sibisi (Mayor of Alfred Duma Local Municipality) (Photo: SRSA)