“The board’s decision to return to the tyre business reverses the earlier communicated decision made on April 20, 2020, to exit from the tyre business,” said the firm.
“This change has been justified by the sustained demand for the Yana brand and the success of the company’s turnaround efforts in 2020.”
The decision followed a meeting on January 22 where the board gave nod to a four-year strategic plan that lays out the firm’s renewed growth.
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“Under the plan, the real estate business will invest in industrial property development in both greenfield projects and value addition to existing properties. While the tyre businesses will be aligned to the changing customer needs, the evolving tyre distribution ecosystem and costs re-alignment.”
Sameer makes U-turn on tyre business after shutting it down
Monday February 08 2021
A worker at Sameer Africa. Sameer has returned to the tyre business after exiting it in May 2020. FILE PHOTO | NMG
By HELLEN GITHAIGA
Sameer Africa #ticker:SMER has returned to tyre distribution after shutting down the division in May last year to tame a loss-making streak amid efforts to cut costs, including outsourcing production to Asia.
At the time, the Nairobi Securities Exchange-listed firm told its shareholders that it would focus on its real estate business, which it projected would return it to profitability.
But in a turnaround bid, the company says it sees both the property and tyre businesses paying off under its four-year (2021-2024) strategic plan.