24th September 2010, www.lankabusinessonline.com
Canada's Camoplast Incorporated will acquire Luxemburg-based Solideal which is the parent of Sri Lanka's Loadstar a solid rubber tyre maker, the Quebec based company has said.
Loadstar is Sri Lanka's top rubber goods exporter with five plants spread around the country, established in partnership with the island's Jinasena group and Solideal, a family owned company.
Solideal also has factories in China, the company said. The firm is an original equipment manufacturer for top brands of construction and material handling equipment in Japan, Europe and USA. The firm makes tyres, rubber tracks and wheels.
Camoplast, based in Quebec, also designs and makes tyres, rubber tracks and undercarriages. It had research facilities in Canada and Korea, and factories in the US, Canada, Korea and Europe.
"The integrated company will operate under the name of Camoplast Solideal Inc. with a significant participation of the current shareholders of Solideal in the ownership of the company," Camoplast said in a statement.
"Solideal and Camoplast brands will continue to be managed independently."
The firm said the deal will go through in October following regulatory approvals.
"The pooling of our two companies’ strengths will add value to our stakeholders: customers, employees, shareholders and suppliers," Paul Gaines, chief executive officer of Solideal group said.
Sri Lanka is a key location for the manufacture of tyres for materials handling equipment accounting for up to 80 percent of global production according to some estimates.