STARCO divests Sri Lankan solid tyre factory
STARCO divests its Sri Lankan solid tyre factory to Sun Tyre & Wheel Systems (SUN-TWS), part of 8 billion-dollar TVS Group of India. SUN-TWS instantly becomes a key strategic partner and supplier of STARCO’s solid tyre range as the market knows it today.
The agreement was signed 27th May 2018 and SUN-TWS will soon take over the STARCO Lanka operation, including the facilities, equipment and employees. They will continue to produce STARCO Tusker, Unicorn, Gecko and Makhna ranges to the same specification, whilst at the same time adding additional volumes into the factory, and boosting competitiveness.
“We see great potential to develop a partnership with SUN-TWS, immediately for our industrial segment, but also for other segments. We will maintain sales and distribution of our solid tyre ranges as the market knows it today,” states Richard Todd, Chief Executive Officer at STARCO. He continues: “I would like to thank our Sri Lankan employees for all their hard work, and look forward to maintaining our strong relationship in the future.”
Customers will experience no change, as the product, and sales and distribution activities will remain as today. Both parties are committed to grow STARCO’s Industrial Segment, and become an even stronger partner for the original equipment manufacturers and key aftermarket distributors.
Mr. Joseph Fernando, SUN-TWS President commented, “the key to the continued success of SUN-TWS is its unique business model, a passion for reliability and consistency, unrivalled customer service and an enduring loyalty to its clients; making SUN-TWS the preferred partner for forklift and tyre distributors around the globe. This is an exciting opportunity that will bring anticipated synergy to our manufacturing facilities.”
The acquisition of STARCO Sri Lanka as SUN-TWS’ 5th manufacturing plant, in addition to expansion at its existing plants in Sri Lanka and India, increases the company’s overall capacity by 40%.
Sun Tyre & Wheel Systems (SUN-TWS) is part of the $8 billion TVS Group. TVS, founded in 1911, are leaders in Automotive Engineering and suppliers to all the major Automotive OEMs around the world. SUN-TWS is a leading supplier of all material handling and off-highway tyres, wheels and related products with five manufacturing plants in the Natural Rubber rich countries of Sri Lanka and India after the acquisition of the Starco Lanka operations.
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