The history of MATADOR - Addis Tyre is directly traced to the history of Matador group and the former Addis Tyre Share Company. These two companies were independently tyre manufacturer companies in their respective countries. Matador group is based in Slovak Republic while Addis Tyre in Ethiopia.
Matador is a joint-stock company registered under the laws of the Slovak Republic under the identification number 00 152 820. The company’s registered office is based at T.Vansovej 1054, Puchov, Slovak Republic.
It is a leading financially strong European tyre manufacturer which was established in Bratislava, SLOVAK REPUBLIC in 1905. It was the first company to start manufacturing of tyres in the former Czechoslovakia. Matador controls a vertically integrated group of companies known as “Matador Group” that are engaged in various activities
While Addis Tyre Share Company (ATC) was a sole bias tyre manufacturer company in Ethiopia for the past 34 years and was state owned until July 7, 2004. It had utilized the technology of Yokohama Rubber Company, with small shareholding had been technical advisor and technology supplier.
The core business activity of ATC was the manufacture and sale of diagonal tyres and inner tubes. It produced exclusively for the Ethiopian market, where it held a 35% market share. The production range of ATC was divided primarily between passenger tyres (from 12” to 15”), light truck tyres (14” to 16”) and heavy truck tyres (20”).
Matador, with the capacity, rich experiences in transferring technology and know-how, with the intention of eventually penetrating the COMESSA Market and Africa at large, accepted the offer for the Joint Venture.
Then it entered into an agreement with the then Addis Tyre Company, sole Tyre manufacturer in Ethiopia, through the formation of the Joint Venture (JV). For transparency and successful marriage, this Joint Venture process had to go intensive and long process. It started in 2002 and finalized on July 8, 2004, after two solid years.
Thus, Matador-Addis Tyre Share Company has been legally established with the specific mission to produce bias tyres related to the former Addis Tyre Company’s product range but with Matador technology, and radial passenger car tyres at the initial stages with the further interest of eventually introducing radial passenger, light truck and truck tyres. It is indeed a Joint Venture Company established on the basis of the Ethiopian investment desire point of view with the objective of technology transfer, capital – inflow and export of tyres. Accordingly, Matador has joined the JV with the contribution of technical-know-how, machinery and some amount of cash as working capital which amounted to USD 13, 899, 000 and export commitment and commenced its operation on July 8, 2004.
As such the shareholding of Matador group is 61% and the shareholding of the Privatization and Public Enterprises Supervising Authority (PPESA) is 39%. Hence, the total registered capital of the Joint venture Company is 22,785,000 United States Dollar. On the Ethiopian side only fixed assets namely Machinery, Vehicles, Building etc. right of land use and good will were contributed.
Since the formation, the Joint Venture has been producing diagonal tyres similar to the former Addis Tyre S.C. but with better technology and productivity. The Joint Venture agreement for the expansion of the Company is finalized in two phases. Hence, it enables to raise the annual production capacity from 233,000 pieces to 500,000 pieces of truck diagonal and passenger radial tyres.
For further expansion, the Shareholders reached in an agreement for additional investment of $ 22 million. Thus, the production capacity will increase to more than one million pieces of tyres and enable the company to produce light truck and truck radial tyres.
