Watts Tyres Establishes Joint Venture with Bulgarian Partner

Gloucestershire based Watts Tyres has entered into a joint venture agreement with Bulgarian rim and wheel manufacturer Balkancar Zarya. The two firms have established the joint venture company “Watts Zarya Limited,” which will concentrate on providing industrial wheel and tyre products to the materials handling OEM market via a just-in-time delivery system.

According to Jean-Paul Mindermann, chief executive for Watts Tyres Plc, “the new joint venture is a cornerstone of our strategy to be the leading wheel and tyre provider to the materials handling industry.” He added “Balkancar Zarya is an excellent partner with high quality wheels to complement our tyres and existing wheel business. With Bulgaria recently joining the EU, the timing and location is perfect to offer OEM’s the high quality and competitive solution that they are searching for.“

Balkancar Zarya’s chairman Stoyan Stoev stated that, as the market for industrial wheels and tyres in growing, Balkancar Zarya is “strategically focusing our resources in this sector.

“I believe we have made the best choice in partnering with Watts with whom we can expand our competitive position with existing OE customers and in the aftermarket.”

The UK and Bulgarian company each hold a 50 per cent share in Watts Zarya, and operations will commence on May 1. Watts Zarya has already entered into discussions with a number of key OEMs, and negotiations are said to be well advanced. The company will start supplying by mid-June 2007, initially to the European market although long-term plans include global operations.