Sumitomo plans to incorporate its Active Tread technology into new Dunlop products. SRI will also focus on OE tires for premium vehicles and motorsports.
After acquiring Goodyear’s Dunlop brand for $701 million, Sumitomo Rubber Industries (SRI) said it plans to make Dunlop a core brand. Also, the manufacturer said it aims to position Dunlop as a premium tire in the market. It plans to incorporate its Active Tread technology into new Dunlop products. SRI will also focus on OE tires for premium vehicles and motorsports.
Active Tread Technology
Sumitomo describes Active Tread as technology enabling rubber to adapt to moisture and temperature changes for better road performance. Sumitomo said that this technology will play a significant role in positioning Dunlop as a premium tire brand.
Strengthening the Dunlop Brand Globally
Sumitomo said it aims to grow Dunlop’s brand value by combining efforts from its tire and sports businesses. It plans to invest in motorsports and global tennis marketing activities to enhance Dunlop’s global reputation.
“Our group has a history of acquiring Dunlop in various countries in the 1980s and producing and selling Dunlop tires in Europe, North America and Japan,” said Satoru Yamamoto, president and CEO of Sumitomo. “Going forward, we will maximize the potential of the Dunlop brand, not only in the new regions where we have acquired rights, but also in existing regions.”
Falken Brand Complements the Strategy
For the Falken brand, Sumitomo said it plans to use its product planning and marketing strengths. It will focus on products appealing to Falken’s core customer base in Europe, North America, and Oceania.
“Through a dual-brand approach to business development, we aim to increase sales volume in each region and raise the proportion of premium products,” Sumitomo said in a statement.
Dunlop Acquisition Details
Details of the deal say that SRI will pay approximately $701 million in cash to Goodyear for the Dunlop brand. That includes a transition fee for brand support, and the purchase of Dunlop tire inventory. Additional agreements include offtake, licensing, and other arrangements.
The $701 million includes $526 million for the Dunlop brand and intellectual property; a $105 million transition fee; and $70 million for inventory.
