Roesler Confirms Interest In Bryan Factory

Roesler Group representatives have confirmed to Tyres & Accessories that the company is interested in buying Continental Tire North America’s (CTNA) Bryan, Ohio, OTR tyre plant. Earlier local media reports had stated that the German company was expected to buy the 312-employe facility this summer. Although Roelsler representatives concurred that a final decision would be made by the end of June, they stopped short of saying that they would definitely purchase the factory. The company would not release details of how much the deal might be worth.

The situation has been complicated by the involvement of the American USW union, which says it wants to enforce a “successorship clause” common to most USW contracts. USW executive vice president John Sellers told CTNA that any company buying a represented tyre plant must first agree a new master contract with the affected local branch of the union. Roesler confirmed that it is in talks with the union and that any purchase of the factory would follow the satisfactory conclusion of these negotiations.

As T&A has previously published, this is the same clause the USW has invoked in the case of Goodyear’s sale of its agricultural tyre business – including its Freeport, Illinois, agricultural plant – to Titan International. In this instance the deal is still to be finalised.

“The successorship clause in the contract specifically requires that the proposed-buyer negotiates a new contract with us prior to the completion of the sale,” said John Sellers, USW executive vice president. The Charlotte-based tyre maker notified the state of Ohio of its pending sale on 3 June. In that contingent notice, CTNA said it anticipates that Roesler will retain all the employees.

“Unlike the claims made by CTNA spokespeople, the employment of Bryan workers cannot merely be transferred over to the buyer,” said John Sellers. “Negotiating a new contract is a must.”

The Roesler Group is based in Dortmund, Germany.