THE RUBBER COMPANY THAT BOUNCED BACK
| Published date | 01 October 1980 |
| Date | 01 October 1980 |
| Pages | 7-10 |
| DOI | https://doi.org/10.1108/eb057131 |
| Subject Matter | Economics,Information & knowledge management,Management science & operations |
THE RUBBER COMPANY
THAT BOUNCED BACK
UNTIL the late 1960's BTR was an
apparently stagnant medium sized
public company with a turnover of
less than £20m and profits of around
£1m. By 1979 the company was trad-
ing in all the leading world markets,
employing 24,000 people; worldwide
turnover had reached £432m and
pre-tax profits £57m. All this was
achieved in the comparatively
unglamorous industrial products
field, against the discouraging
economic backdrop of the 1970's.
How did this transformation come
about and what messages of hope are
there for the rest of British industry?
The company's origins lie in the
1920's, when it was established by the
B.F.
Goodrich rubber company of the
United States. In 1934, the fledgling
severed its connection with its parent
to become British Tyre and Rubber,
from which were derived the initials
BTR.
How BTR deflated
its tyres and took
the high road
to success
During the 1950's, BTR ceased to
manufacture tyres which, as the radial
tyre was being developed, was becom-
ing an increasingly unprofitable activ-
ity for the middle-weights of the
industry. Instead, it concentrated its
activities in the manufacture of con-
veyor belting, industrial hose and
mouled rubber components. In 1958
Microcell, an industrial plastics com-
pany, was acquired, and this, together
with the closure of the tyre business,
nearly brought BTR to its knees. Pro-
fits and losses followed each other in
switchback order for most of the
1960's. Whilst management got to
grips with the loss-makers, the decade
seemed destined to close inauspici-
ously for the group.
Towards the end of 1969, however,
came the first major move which was
to establish the pattern for growth
over the next 10 years - the merger
with Leyland & Birmingham Rubber
Company; the combined group was
now to be run by the management
team which BTR had assembled to
mastermind the turn-around in its
trading fortunes. David (now Sir
David) Nicolson became non-
executive chairman of the enlarged
group and Owen Green was
appointed managing director. Don
Tapley, who had joined the company
from Avon Rubber in 1966, John
Cahill and finance director Norman
NOVEMBER 1980 7
To continue reading
Request your trial