GPX is selling its Serbian tire plant to Czech tiremaker CGS.

The sale is expected to close in September, GPX said. CGS produces and sells Continental and Semperit farm tires for the European market.

GPX’s Rumaguma, Serbia, plant has been producing tires for CGS for many years and CGS is currently the plant’s largest customer, GPX said.

GPX acquired the plant in 2003, and was the first plant bought by the company.

In a statement, GPX said, “With the recent decision by the U.S. International Trade Commission to impose punitive duties on agricultural and OTR tires from China, GPX must shift the focus of its Starbright factory in China from the U.S. to Europe. This means that much of what is currently being produced in Rumaguma will be moved to Starbright. The Starbright factory, which GPX purchased in 2006, is a large and modern facility and can easily absorb Rumaguma’s production. In addition, Starbright can produce a broader range of products including radial farms tires, forestry tires, port tires and underground mining tires.

“Along with the sale of the Rumaguma plant, GPX agreed to transfer its Galaxy brand business in parts of Eastern and Central Europe to CGS,” the company said. “GPX will continue to have Galaxy brand tires produced at Rumaguma for some period of time under an off-take agreement with CGS. This will allow GPX to be able to continue to support its original equipment and aftermarket customers without any risk of a supply interruption.” (Courtesy of Tire Review)