Titan’s Board Approves Giant Tyre Production

The go-ahead has been given for Titan International to gear-up for giant tyre production. The company’s Board of Directors approved the allocation of funding to increase mining tyre production by the addition of 57 and 63-inch sizes to its range. This injection of finances should give Titan the ability to produced around 6,000 of the giant radials per year.

“We are very excited about this newest venture since there are only two manufacturers in the world that produce 63-inch radial tyres: Michelin and Bridgestone,” said Titan Chairman and CEO Maurice M. Taylor Jr. “This is what it’s all about; a small American company going up against two powerhouse foreign companies, one French, the other Japanese.

“Titan has assembled a great team, and we believe that we have a better way to produce these giant tyres. We believe radial tyres perform better on 15-degree wheels, which is what cars and trucks now utilise. Titan has developed these wheels and we plan to produce our new tyres on a 72.5-inch 15-degree wheel at the same time as we produce 63-inch radial tyres.”

The production of these high-margin mining tyres may increase Titan’s sales by as much as US$240 million. The company expects to produce its first 63-inch radial tyre during the first quarter of 2008, and be in start-up production by the end of the second quarter. The funding approved by the Board of Directors will also allow Titan to build the world’s largest 24-foot bull wheel, a specialised wheel used to test tyres. The bull wheel will have the capacity to load tyres up to 135 tonnes and run them at speeds up to 67km/h.

Titan’s decision to proceed with giant tyre production has been based upon fiscal advice given by the financial management and advisory company Merrill Lynch. Mr. Taylor previously stated that Titan would also need to obtain a measure of buying commitment from mining companies before embarking on any giant tyre production venture.