Conti to source solid tyres from Sri Lanka

ERJ staff report (TB)

Colombo, Sri Lanka-- Continental AG has set up a joint venture with Sri Lankan solid tyre maker Eu-Retec (Pvt.) Ltd. to make industrial tyres for Conti for the North American and Asian markets.

Continental reportedly will invest $7 million in Eu-Retec's facilities, and the agreement calls for Michael Maertens, managing director of Conti's industrial tyres business, to become chairman of a joint venture Conti formed with the Sri Lankan company.

The companies did not disclose the venture's anticipated revenue or specifics of the product range. The venture started shipping tires earlier this year.

Eu-Retec has been in business since 1999, making new and remoulded industrial solid tyres at a plant near Colombo.

The deal replaces one Conti has had since 2005 with Watts Industrial Tyres of the United Kingdom. Watts owned half of Eu-Retec throughout most of that deal, but it sold its share earlier this year.

Watts said it is looking for another manufacturing partnership to replace the Eu-Retec deal.

From Tire Business (A Crain publication)