STARCO divest South African subsidiary
STARCO divest its South African company to align the business and enhance focus on core business and OEM-customers across Europe. STARCO will still supply solid tyres for fork lift trucks to the market.
STARCO has decided to exit South Africa as a distributor and service provider and transfers its 50% shareholding to a newly established company owned by the current partner in the STARCO subsidiary. The supply of solid tyres to South Africa will still be from STARCO’s factory in Sri Lanka. The new company will take over the entire business including customers, facilities, employees and various legal obligations. Hence, daily business for customers, employees and other partners will remain the same.
“This is a natural step in our 2020 Strategy where key elements are aligning organisational setup, focusing on core business and increasing profitability,” says Karsten E. Petersen, Chief Financial Officer at STARCO.
STARCO recently presented a 2020 strategy with a dedicated focus on the market for original equipment manufacturers of applications and an aspiration to be even more recognised as a strong partner in wheel and tyre solutions.
Since 2012, STARCO has owned 50% of the South African STARCO company that today employs 20 people. South Africa is a relatively large fork lift truck market and STARCO has had its focus on the aftermarket with solid tyres coming out of STARCO’s factory in Sri Lanka.
The new South African company will still source solid tyres for fork lift trucks from STARCO. Furthermore, STARCO will pursue and develop new opportunities in other fork lift trucks-markets.
“We will reinforce our sales activities in new markets and continue to develop our relation and collaboration with some of the largest fork lift truck manufacturers in Europe. We have extensive experience in the tyre business, high quality products and a strong manufacturing setup to support current and new customers,” says Thomas Ballegaard, Chief Commercial Officer at STARCO.
STARCO’s key products in this segment are STARCO Tusker, STARCO Unicorn and STARCO Makhna. Read more about tyre solutions for industrial vehicles here.
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