Sameer Africa Plc Returns to its 50-Year Old Tyre Business
Sameer Afria Plc has announced its return to the tyre business. In a notice issued by the company, the Nairobi Securities Exchange-listed firm said following a meeting held on the 22nd of January, the board of directors approved a four year strategic plan for the financial year 2021 to 2024. The plan is set on a well defined growth strategy that is set to improve the company’s real estate portfolio as well as extensive tyre industry experience.
The announcement comes as a reversal of a previous announcement made by the company to leave the tyre business which saw it sack 73 employees. The company announced the closure of the tyre business attributing it to the containment measures brought about by COVID-19 which largely affected the transport sector. The closure of tyre business which accounts for 90% of the company’s revenue brought about a lot of criticism from a section of shareholders as the news had not been disclosed to the investing public.
The company justified the return to the tyre business saying there was a sustained demand for the Yana brand and its turnaround efforts in 2020 brought about success to the business
Sameer Africa’s new Strategies
Sameer Africa says under the new plan, the real estate business will invest in industrial property development in both green field projects and value addition to existing properties,while the tyre business will be changing according to the evolving customer needs, the changing tyre distribution ecosystem as well as cost re-alignment.
The board has expressed optimism in the new measures put in place by the company and are looking forward to an improved performance in the company’s financial results.
Sameer Africa PLC is 72.15% owned by Sameer Investments Limited, a leading economic force in East Africa which also has interest in agriculture, manufacturing, distribution, high-tech, construction, transport and finance.