The story
Founded by John Boyd Dunlop and Vernon Scannell in 1889.1
Beginning
In 1888, John Boyd Dunlop, a Scottish veterinary surgeon living in Ireland, discovered the pneumatic tyre principle. 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 However, in 1890, J. B. Dunlop's patent was withdrawn.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 the first US Dunlop America Factory built in Buffalo, New York between 1920-1923, after Harvey du Cros junior was old enough (21) to sign the necessary deeds.
In 1893, its manufacturing base 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.
Read the full text
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 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 60,000 acres (24,000 hectares) acres of rubber plantations. Considerable expansion occurred during the First World War. In 1916, construction of the Fort Dunlop site began, across 400 acres (160 hectares). 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 issues affecting tyres and a wider collapse in trade shortly after the end of the First World War. 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.
From Wikipedia’s article on Dunlop Rubber, shared under CC BY-SA 4.0.4