Trelleborg to produce agri tyres in US

At present, Trelleborg Wheel Systems manufactures agricultural tyres in Europe and Asia, and soon North America will be added to its agricultural production footprint. Trelleborg has decided to invest SEK 325 million (£29.4 million) between 2014 and 2018 to set up an agricultural tyre production facility in the US. Production is expected to commence in the second half of 2015 and gradually increase.

“North America is the largest agricultural market in the world and it is highly attractive for us,” states Maurizio Vischi, president of the Trelleborg Wheel Systems business unit. “The market for extra-large agricultural tyres, where Trelleborg is a market leader, is growing in the region. Although we already sell our products in the US and Canada, local production offers considerably more favourable conditions, thus enhancing our competitiveness. An expanded presence in North America is central to our growth strategy.”

The agricultural production will be located in an existing Trelleborg facility in Spartanburg, South Carolina. Most of the SEK 325 million invested over the coming four years will go towards production equipment. Trelleborg says its investment for this year is within the company’s previously announced framework for capital expenditures for 2014.

“We are already a leading global supplier of premium tyres for agricultural machines and we now intend to consolidate this position through production in North America, with proximity to both existing global customers as well as a potential expanded customer base,” continues Vischi. “We are building up specialty production of agricultural tyres in a modern facility in a prime location, and we are also capitalising on existing partnership agreements with major original equipment manufacturers and distributors, facilitating the transfer of technology from one part of the world to another.”