Avon Rubber PLC (HQ: Bath Road, GB-Melksham SN12 8AA) is to sell its Tyres Division in order to concentrate resources on its Automotive Components and Technical Products Divisions. The GBP 60m deal with the US group Cooper Tire & Rubber Company (Findlay, Ohio, USA) will include the Melksham factory in the UK as well as distribution firms in France, Germany and Switzerland.

Avon Rubber had already identified automotive components as the sector of greatest growth potential and during last year it organised these activities under a single executive director. In May 1996 it opened a new plant, Avon Polimeros in Tondela, Portugal to supply heater and coolant hose to the Ford plant in Valencia, Spain and Sao Paulo, Brazil and during the year established a joint venture company with Gold Seal to manufacture a similar range of products in India from early 1997. In March of this year the company also opened a new GBP 1m pound automotive hose production facility at its Czech joint venture company Avon-Rubena a.s. based near Prague. Avon-Rubena supplies Skoda, VW, Audi and General Motors. Turnover for automotive components in 1996 was GBP 161.6m, with technical products GBP 88.5m.

The disposal of the Tyre Division will give the group greater resources to pursue further acquisitions and joint venture opportunities for its remaining divisions, as well as the ability to increase capital investment.

READER SERVICE: Avon Annual report and accounts 1996 (English):PIE-No. 40526 (DEM 24.00).