Correction -- In a press release issued by Trelleborg on
February 17, the manufacturing firm stated it was acquiring the US Group Main
Industrial Tire LLC. The company is called Maine
Industrial Tire LLC. -- Ed.
TRELLEBORG, Sweden -- Trelleborg has acquired an operation in eastern China to facilitate the group’s expansion in the Chinese market for specialty tires, primarily agricultural tires.
Trelleborg has acquired an existing facility from a Chinese company, part of the U.S. group Maine Industrial Tire LLC, including approximately 180 employees.
With this acquisition, Trelleborg says it now becomes the first manufacturer of agricultural tires from the West to have its own production in China. The business provides proximity to Chinese customers, but also support to European and U.S. customers in the local Chinese market.
“Our customers are becoming increasingly global. They are now becoming established in Asia, mainly in China, which is why we are implementing this acquisition. This is an excellent way of entering the rapidly expanding Chinese market,” said Maurizio Vischi, business area president of Trelleborg Wheel Systems.
“This acquisition will give us a lead in this expansive market,” Vischi added. “There is enormous potential within agricultural machinery in China. Today, more than half of all agriculture in the country is conducted manually and the shift to using more vehicles and machinery is taking place rapidly.”
The plant will strengthen Trelleborg Wheel Systems’ competitiveness in markets other than China, the company said, by broadening the range and through more cost efficient production.
On Feb. 4, Trelleborg also finalized its acquisition of U.K.-based Watts Tyre Group, a move that the company said strengthens its leading global position in industrial tires, through geographic expansion and an increased presence in the aftermarket.
The acquisition and investments total approximately SEK 100 M ($15.6 million) over a three-year period. Production under the Trelleborg name is expected to begin during the second quarter of this year.
