Sameer Africa has announced its plans to resume its business of distributing vehicle tyres, only nine months after the company announced the shutdown of the business segment due to a loss-making streak.
According to Sameer, the decision to reverse the decision made in early 2020 was motivated by a growing demand for its Yana Tyres brand and the company’s turnaround efforts last year.
This comes after Sameer’s Board of Directors on January 22 ratified a four-year strategic plan based on its tyre business and real estate portfolio.
The new plan is part of Sameer Africa’s development strategy for 2021-2024 as it intends to re-align its tyre business to match the changing customer needs and evolving distribution system.
The company also plans to shore up its investment in the real estate sector and plans to develop industrial property while also adding value to its existing property.
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Sameer Africa has heavily invested in real estate, agribusiness, and manufacturing and projects a boost in the tyre business and real estate in 2021.
The listed firm in April 2020, in a surprise move, announced its exit from the tyre distribution business, its main source of income, owing to its poor performance in the previous year.
Sameer Africa Plc said then that its tyre segment lost more than Sh1 billion in 2018 and 2019.
The closure in 2020 cost the company Sh223 million; Sh60 Million in redundancy costs after firing 73 employees and Sh163 million in impairment costs on its fixed assets.
