Dunlop Rubber
Dunlop Ltd, formerly Dunlop Rubber, was a British multinational company, involved in the manufacture of various natural rubber goods. The business was founded in 1889 by Harvey du Cros, and he involved John Boyd Dunlop, who had re-invented and developed the first practical pneumatic tyre for his child's tricycle.
The company was one of the first multinationals and, under du Cros and, after him, under Eric Geddes, it grew to be one of the largest British industrial companies, although J. B. Dunlop had dropped any ties to it well before his name was used for any part of the business. The business and factory was founded in Upper Stephen Street, Dublin. A plaque marks the site, which is now part of the head office of the Irish multinational departments store brand, Dunnes Stores.
Despite having recognised by the mid-1960s the potential drop in demand as the more durable radial tyres swept the market, Dunlop Rubber failed to adapt to evolving market conditions in the 1970s. After taking on excessive debt, Dunlop was acquired in 1985 by the industrial conglomerate BTR. Since then, ownership of the various Dunlop trademarks has become fragmented.
History to 1921
Beginning
In 1888, John Boyd Dunlop, a Scottish veterinary surgeon living in Ireland, pioneered the first practical pneumatic tyre for bicycles. Willie Hume created publicity for J. B. Dunlop's discovery by winning seven out of eight cycle races with Dunlop's pneumatic tyres. To own the rights and exploit the discovery, the "Pneumatic Tyre and Booth's Cycle Agency Co. Ltd" was incorporated in 1889 and floated by Harvey du Cros, who was, amongst other things, president of the Irish Cyclists' Association. The invitation to du Cros to participate was made by William Bowden, a Dublin cycle agent. J. B. Dunlop, who could see no prosperous future in his discovery, had informally transferred his rights to Bowden. Initially J. B. Dunlop held a 20 per cent stake in the venture. The company's first headquarters was at Oriel House, Westland Row.Pneumatic Tyre
The late 1880s was a period of great demand for John Kemp Starley's new safety bicycles. Pneumatic Tyre began cycle tyre production in Belfast in late 1890, and quickly expanded to fill consumer demand. However, in 1890, J. B. Dunlop's patent was withdrawn. It had been discovered that Robert William Thomson had first patented the pneumatic tyre in 1845. J. B. Dunlop and Harvey du Cros together worked through the ensuing considerable difficulties. They employed inventor Charles Kingston Welch and also acquired other rights and patents which allowed them to protect their business's position to some extent.In the early 1890s, Pneumatic Tyre established divisions in Europe and North America, sending there four of du Cros's six sons. Factories were established overseas, because foreign patents rights would only be maintained if the company was engaged in active manufacture where its tyres were sold. Pneumatic Tyre partnered with local cycle firms such as Clement Cycles in France and Adler in Germany in order to limit the necessary capital expenditure. An American business was established in the US in 1893 with a factory in Buffalo, New York, after Harvey du Cros junior was old enough to sign the necessary deeds.
In 1893, home manufacture was relocated from Belfast and Dublin to Coventry, the centre of the British cycle industry. The Dublin Corporation had launched a case against Pneumatic Tyre, claiming nuisance from the smell of rubber and naphtha. Pneumatic Tyre soon spread developing interests in Birmingham. The following year a major interest was taken in their component supplier Byrne Bros India Rubber of Lichfield Road, Aston, Birmingham. The same year du Cros started Cycle Components Manufacturing in Selly Oak to supply inner tubes.
Dunlop Pneumatic Tyre
J. B. Dunlop resigned in 1895, and sold most of his interest in Pneumatic Tyre. In 1896, Harvey Du Cros persuaded his board to sell Pneumatic Tyre to financier Ernest Terah Hooley for £3 million. Hooley drummed up support by offering financial journalists cheap shares and appointing aristocrats to the board, and quickly sold the business again, this time as the Dunlop Pneumatic Tyre Company, for £5 million, providing a gross profit to Hooley's syndicate including du Cros of £1.7 million.Associate and supplier Byrne Bros India Rubber, at their Manor Rubber Mills, Aston Cross, had moved from making tyre and tube components to complete inner tubes and covers. In June 1896, du Cros formed a new company, Rubber Tyre Manufacturing, to acquire Byrne Bros. E. J. Byrne was contracted to be managing director for five years.
Dunlop Rubber
From the late 1890s, Dunlop Pneumatic Tyre began to acquire its own rubber mills to process rubber, whereas previously it had assembled tyres using components from other manufacturers. In 1901, Dunlop Pneumatic Tyre used its majority holding to rename "Rubber Tyre Manufacturing" to "Dunlop Rubber". Arthur Du Cros replaced E. J. Byrne.From 1900, Dunlop began to diversify from cycle tyres. The company manufactured its first motor car tyre in 1900. In 1906, a car wheel manufacturing plant was built. In 1910 Dunlop developed its first aeroplane tyre and golf ball.
Between 1904 and 1909, the French Dunlop subsidiary lost a total of £200,000, as European rivals such as Michelin of France and Continental of Germany overtook it in the motor tyre market. In 1909, Dunlop of France, and in 1910, Dunlop of Germany were wholly acquired by the British parent in order to enforce stronger quality control.
Amalgamation of Dunlop Pneumatic Tyre and Dunlop Rubber
In August 1912, Dunlop Pneumatic Tyre went out of business though retaining certain financial commitments. It passed its activities to Dunlop Rubber in exchange for shares, and changed its name to The Parent Tyre Company Limited. Dunlop Rubber purchased certain of its assets including goodwill and trading rights and, in exchange, the tyre company shareholders now owned three-quarters of Dunlop Rubber. The amalgamation was intended to bring about a substantial reduction in overheads and clarify what had been seen as a confusing relationship between the two enterprises when they shared most shareholders.Arthur du Cros was made managing director and deputy chairman in 1912 and retained that position after his father's death in 1918, after which A L Ormrod became chairman through until 1921. For supply, Du Cros selected estates in Ceylon and Malaya for purchase and, by 1917, the company owned about acres of rubber plantations. In 1916, construction of the Fort Dunlop site began, across. By 1918, Dunlop was the fourteenth-largest manufacturing company in Britain, and the only large-scale tyre manufacturer.
Arthur Du Cros had become personally close to the financier James White, and appointed him as Dunlop's financial advisor in 1913. By 1919, White had acquired control of the company. White speculated on the rubber futures market, with disastrous results, because the price of rubber collapsed. Meanwhile, there were also quality control problems with tyres. That came to a head in August 1921 when the company announced a loss of £8 million on the year's trading. It was saved by the intervention of Frederick Szarvasy of the British Foreign and Colonial Corporation. White's board member nominees were removed, and Sir Eric Geddes was appointed as chairman.
Geddes era diversification
From 1924, Sir Eric Geddes began to diversify Dunlop. In 1924, the company began to manufacture tennis balls. In 1925, F. A. Davis was acquired, which had tennis racket manufacturing expertise. In 1926 the company acquired Charles Macintosh of Manchester for £2.5 million, and the Dunlop name was applied to footwear and clothing. Dunlop opened acquisition discussions with Slazenger in 1927, but without success. By 1928 only 72 per cent of turnover was in tyres, compared to 90 per cent in 1920.An advertising campaign in 1928 heralded "the Dunlop way". In the late 1920s, Dunlop had manufacturing subsidiaries in the US, Canada, France, Germany, South Africa, Australia, India and Japan. By 1930, Dunlop secured an equal market share with its archrival Michelin in France.
In 1929, Dunlopillo latex foam was patented. In 1933, the commercial production of Dunlopillo products began. In 1930, Dunlop was the eighth largest public company in Britain by market value.
The inter-war years saw considerable international expansion for Dunlop. The German subsidiary was reacquired after the First World War, and by 1929, Dunlop of Germany operated the second largest tyre factory in the country. Dunlop built manufacturing facilities in Ireland, South Africa and India during the 1930s. In 1932 the Dunlop bridge was built over the Circuit De La Sarthe, home to the Le Mans 24-hour race.
The years 1922 to 1937 firmly established Dunlop as a household name. By 1939, Dunlop was one of the largest British multinational companies.
During the 1930s, Dunlop designed and licensed the production of joysticks and joystick components on British and other allied aircraft – most notably the joystick grip and head on the early Merlin engine Supermarine Spitfires that saw service during the early stages of World War II and the Battle of Britain.
Post war
By 1946, Dunlop had 70,000 employees, and sales outlets in nearly every country in the world. In 1948 Dunlop invented the self-sealing tyre, which reduced the risk from blowouts. In the early 1950s, Dunlop developed Maxaret, the first anti-lock braking system. By 1955 Dunlop had almost half of the UK tyre market. A report by the Monopolies and Restrictive Practices Commission in that year found that Dunlop and the four other main sellers in the UK market companies had arrangements which resulted in fixed prices. These arrangements were forced to change, and Dunlop's market share decreased. In July 1956, the Monopolies and Restrictive Practices Commission published a further document with implications for Dunlop products entitled Report on the Supply of Certain Rubber Footwear, which covered rubber boots of all kinds including wellingtons and overboots.In 1952 a group of British military veterans raided Dunlop's annual shareholder meeting to protest against British colonialism and the Malayan Emergency. This protest which took place in the aftermath of the British Malayan headhunting scandal, saw the soldiers throwing leaflets across the room containing both anti-colonial messages and photographs of British troops posing with the severed heads of suspected communist and anti-colonial guerrillas.
In 1958, Dunlop acquired British rival John Bull Rubber which also included Metalastic. Throughout the 1950s Dunlop had manufacturing plants in Brazil and New Zealand.
The Dunlop Aquafort range of underwater swimming equipment, including one- and two-piece dry suits, wetsuits, weight-belt, snorkel, diving mask and swimming fins was manufactured between 1956 and 1962 or so by Dunlop Special Products Limited at Fort Dunlop in Birmingham and distributed by Dunlop Sports Company Limited at Allington House, 136–142 Victoria Street, London.
A further factor in Dunlop's decline was the decision during the early 1960s to develop cheaper textile radial tyres rather than the more durable steel-belted radial tyres. Dunlop lost market share to manufacturers marketing steel-belted tyres, such as Michelin.
Meanwhile, UK productivity and quality was poor. Salesmen preferred products from the company's continental factories.
File:Tom Okker en Jan Hajer.jpg|thumb|Dutch tennis players Tom Okker and Jan Hajer pose with Dunlop and Slazenger rackets in 1964
In 1967, the company changed its name from the "Dunlop Rubber Company Ltd" to "Dunlop Ltd", as it had diversified from rubber. At this time, around 60 per cent of sales came from overseas, and tyres represented 60 per cent of company turnover.
Sir Reay Geddes, the son of Sir Eric Geddes, became chairman of Dunlop in 1968.
In 1968, Dunlop acquired George Angus Ltd of Newcastle upon Tyne, a world leader in the supply of fire hoses and fire fighting equipment. That year Dunlop had operating profits of £31.8 million, with net profits of £11.2 million. By the late 1960s, Dunlop was the 35th largest company in the world outside the United States. In 1970, Dunlop had 102,000 employees.
In 1971, Dunlop merged with Pirelli of Italy to form the world's third-largest tyre company after Goodyear and Firestone. The merger was a joint venture arrangement where each company took minority interests in the other's subsidiaries, rather than a takeover. The merger was not successful, and the joint venture was dissolved in 1981. Pirelli was not profitable throughout the entire duration of the merger.
The decline of the British car manufacturing industry from 1972 onwards also impacted the core Dunlop business. Matters were compounded by the 1973 oil crisis.