The owner of Dunlop Tyres SA, Japanese giant Sumitomo Rubber Industries (SRI), is backing a R1.7 billion investment into the expansion of the local tyre production industry.

The investment will see Dunlop’s Ladysmith manufacturing plant in KwaZulu-Natal (KZN) receiving new plant equipment and machinery that will boost passenger car tyre production capabilities, efficiencies and product offerings to better support local demand. Sumitomo Rubber South Africa (SRSA), the local operations of SRI, announced the investment drive on Monday.

“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,” says SRSA CEO Lubin Ozoux.

“The plant will be able to run a wider set of products, producing more tyres that meet and exceed OE [original equipment] 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 [in].”

Ozoux notes the equipment additions at the plant will help reduce overall plant waste by 60% and further cut down on power consumption.

Good for jobs

SRI manufactures Dunlop tyres and distributes Sumitomo and Falken branded tyres in South Africa. The KZN plant produces a significant portion of the tyres on the country’s roads, reportedly holding about 20% of the local OE market.

Minister of Trade, Industry and Competition Ebrahim Patel says the investment is a welcome boost for the local automotive industry as it will help increase production, factory output and jobs.

“Furthermore, the new investment will aid in the modernisation and improvement of the plant. It also marks a significant step toward achieving President [Cyril] Ramaphosa’s R2 trillion target for new investments over the next five years.”

Patel adds: “South Africa has an 88-year history of tyre manufacturing, and this plant is Africa’s largest tyre producer. The investment announced today [Monday] 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.”

According to the tyre producer, Dunlop has hired 1 257 people in the past decade.
“Dunlop plays a vital role in the Ladysmith economy as we are one of the largest employers in the town,” says Ozoux. “In addition, our spend in the local economy has a multiplier effect on job creation and sustaining local businesses. We have endeavoured to source locally, and a local Ladysmith supplier has been developed as SRSA’s main ‘mould management’ vendor.”