European Rubber Journal and RubberNews.com in latest report said that world’s fourth largest tyre manufacturer - Continental A.G. of Germany had taken the full ownership of Sri Lankan solid tire maker Eu-Retec (Pvt) Ltd., buying the 49% stake it didn't own from the company's Managing Director.

The report said that the acquisition is part of Continental's "Vision 2025" growth strategy, and the company plans to expand in specific markets over the coming years, quoting a Continental representative who has not disclosed the financial terms.

"We want to further strengthen our strong position in the solid tire business and extend our complete portfolio to the Americas and Asia," the Continental A.G. officials had said adding that the company’s "strategic decision" to acquire Eu-Retec would enable it to optimize costs and save time for customers within its commercial specialty tires segment.

Continental A.G. has been a joint venture partner of Eu-Retec since 2009, and at that time the venture has been formed to supply customers in North America and Europe with solid tires. Report said that Deshamanya Anurath Abeyratne, the Founder and Chairman of SPA Group, was the Managing Director who held the 49% stake as Managing Director of Eu-Retec, which was founded in 1999.

Company official had further said that they are now in the process of integrating the plant into the Continental footprint and that it is a complex process which will require some more time. Report added that the company also makes press-on bands and rubber tracks for agricultural/industrial uses and sells ground rubber as well.

Continental AG, commonly known as Continental, is a leading German automotive manufacturing company specialising in tyres, brake systems, interior electronics, automotive safety, powertrain and chassis components, tachographs, and other parts for the automotive and transportation industries. Continental is based in Hanover, Lower Saxony, Germany, and the world's fourth-largest tyre manufacturer.

Company was founded in 1871 as a rubber manufacturer, Continental-Caoutchouc und Gutta-Percha Compagnie. In 1898, Continental started development and production of the vehicle tyres with plain tread, which was the major success of the brand. In 1904, Continental became the first company in the world, who manufactured grooved vehicle tyres, whilst Continental invented a detachable wheel tire that was made for touring vehicles in 1905. Reports highlight that in the late 1920s, Continental merged with several other major rubber industry companies to form the largest rubber company in Germany “Continental Gummi-Werke AG”.

- Reporting by Devendra Francis