By Michael Eboh & Providence Obuh
DN Tyre and Rubber PlcÂ has reiterated its commitment to ensuring its survival and quick return to profitability.Speaking at a forum in Lagos, Dr. Kolapo Popoola, Director, Tyre Division of the company noted that the company is currently holding talks with the federal government to ensure that all the challenges confronting the company are addressed.
He called on the government to grant tax incentives to manufacturers who engage in production and expansion activities, and address the infrastructural issues facing the real sector.
Popoola called for a bail out package for the tyre manufacturing sector, adding that this would go a long way to developing the sector and help it to cope in the face of the numerous economic and infrastructural challenges in the country.
He explained that it is seriously working towards clearing outstanding loans secured from financial institutions and other organisations, urging the federal government to assist it in paying off its debts owed the National Automotive Council (NAC).
He noted that the company is committed to sustaining its market share, hence, its decisions to put in place all necessary structures to facilitate distribution and also meet customersâ€™ demands nationwide through importation of tyres.
Speaking further he stated that the company is presently owing a principal amount of N497 million and this the amount and that it has spent about N150 million in paying off gratuities of disengaged staff.
He debunked insinuations in some quarters that the company is planning to relocate to Ghana, adding that despite the tough operating environment in Nigeria, it has no plans to relocate to Ghana.
He said, â€œWe are still holding talks with the relevant government authorities on the necessity of bringing back the manufacturing of tyres back, as it is an economic booster, but we however have decided to concentrate on tyre importation for now, and with all necessary structures put in place, we can conveniently generate about N4 billion turnover in our full year of operations for our stakeholders through tyre importation.
â€œThe Federal Government has raised a standing committee comprising of Nigerian Customs, Standard Organisation of Nigeria and National Automotive Council charged with the responsibilities of putting modalities in place to see if our company can reopen its factory for production activities. Because, there is a lot of profitability to be accrued if we produce these tyres our self, but the environment is not friendly enough for that right now, and that is why we seek the help of government.â€