NTAW Holdings Secures AUD 1.5M Credit Amid Dunlop Distribution Exit
NTAW Holdings has terminated its Australian Dunlop tyre distribution agreements, entering new contracts with Sumitomo Rubber Industries and Goodyear entities, while continuing Dunlop distribution in New Zealand. The move marks a strategic pivot as NTAW aims to grow other business units and reduce costs.
- Termination of Dunlop distribution agreements in Australia with Goodyear AU and NZ
- New agreements signed with Sumitomo Rubber Industries and related entities
- AUD 1.5 million credit from Goodyear AU to support Cooper product acquisition
- Continued Dunlop tyre distribution in New Zealand under a new non-exclusive agreement
- NTD focuses on growth in other wholesale and retail units while cutting costs
Strategic Shift in Dunlop Distribution
NTAW Holdings Limited (ASX: NTD) has officially ended its distribution of Dunlop branded tyres in Australia, following the termination of agreements with Goodyear & Dunlop Tyres (Aust) Pty Limited and Goodyear & Dunlop Tyres (NZ). This development, effective 8 May 2025, comes after conditional agreements involving the sale of the Dunlop brand by Goodyear Tyre & Rubber Company to Sumitomo Rubber Industries (SRI) were completed.
The company has entered into a series of new agreements with Sumitomo Rubber Australia Pty Limited (SRA) and other related entities, including a repurchase agreement for existing Dunlop stock and a transition agreement to facilitate an orderly handover of distribution responsibilities in Australia.
Financial and Operational Implications
Under the new arrangements, NTAW will cease importing Dunlop tyres into Australia and has agreed to sell its existing Dunlop inventory to SRA at landed cost prices. Additionally, Goodyear AU has credited NTAW AUD 1.5 million to support the acquisition of Cooper products over the next 12 months, signaling a pivot towards alternative product lines.
In New Zealand, NTAW will continue as a non-exclusive distributor of Dunlop tyres under a new agreement with SRI, with provisions allowing termination if SRI appoints another distributor. This ensures NTAW maintains a presence in the New Zealand market while adjusting its Australian operations.
Transition and Future Growth Plans
The transition agreement allows NTAW to hold and sell Dunlop inventory on consignment from SRA in Australia, with flexible termination terms for both parties. Discussions are also underway regarding potential ongoing logistics support, leveraging NTAW’s warehousing and delivery capabilities.
NTAW is concurrently executing strategies to grow revenue in other wholesale and commercial retail business units across Australia and New Zealand, supported by cost reductions and inventory management. The company plans to introduce new products and marketing campaigns to increase market share for its core brands.
The full impact of removing Dunlop from NTAW’s Australian portfolio and the effectiveness of these strategic initiatives will be assessed over the second half of 2025 and the first half of 2026, with further updates expected following the release of 2H25 results.
Bottom Line?
NTAW’s exit from Australian Dunlop distribution signals a major portfolio shift, with market watchers keen to see if new growth strategies can offset the loss.
Questions in the middle?
- How will the loss of Dunlop distribution affect NTAW’s revenue and profitability in the near term?
- What are the prospects and risks of NTAW’s expanded focus on Cooper products and other brands?
- Will the ongoing logistics support arrangement with SRA evolve into a longer-term partnership?