Japanese to help Dunlop tyre design

Press, 14 April 1984, Page 23

Japanese to help Dunlop tyre design

PA Wellington Much of the tyre design and technology coming from the Dunlop Group would originate from, or be influenced by, Japan, the annual meeting of Dunlop New Zealand, Ltd, was told yesterday. The chairman of the company, Mr W. C. D. Evans indicated the reason for this was that the company’s overseas shareholder, Dunlop Holdings PLC, intended to sell most of its tyre operations in Europe to Sumitomo Rubber Industries of Japan. Mr Evans also told the meeting that the company’s directors were satisifed the acquisition of Reidrubber had been the right step. “Had it not been taken the New Zealand tyre industry would by now have been in a seriously weakened position.” Referring to the Government’s planned restructure of the tyre industry, he said that the changed environment presented many hazards for the remaining New

Zealand producers, but at least the challenges were “ordered and understood.” He indicated that tyre makers wanted some clear idea as soon as possible what level of car assembly in New Zealand was intended. The tyre division remained the most profitable part of the company’s operations, he said. Radical surgery had been needed to cope with a substantial fall in the profits of the industrial and sports divisions. “In sports, fashion and technology overtook the old craft of wooden racket manufacture, substituting an array of materials which cannbt be economically processed in New Zealand. “In the industrial group the main casualty was the company’s range of footwear components in a domestic market already over-supplied and now under imported pressure under the terms of the government’s footwear plan. The surgery is now showing benefits.”