Speaking to Radio VOP, Dunlop managing director, Kennedy Mandevane, said the deal will significantly increase its capacity utilization that has over the years been severely affected by the failure to access lines of credit to recapitalise.
“Apollo South Africa is going to relocate its moulds and certain machinery used for the manufacturing of required tyre sizes,” said Mandevane.
He said that all their cross ply light truck and truck tyre sizes will be produced by Dunlop Zimbabwe and that this is set to double their production and result in the tyre exports to Malawi, Zambia and South Africa.
Mandevane added that the India based Apollo Tyre Group of Companies, which own Dunlop, had confidence in investing in Bulawayo when other companies were relocating to Harare.
Dunlop Zimbabwe is currently operating below capacity and when the production of allotted tyre sizes start in November, production level is set to be above 50 percent.