Agricultural
During the course of 2011 the CGS Group will introduce a new Mitas branded range of tyres for use in row-crop agriculture into its global markets. This Mitas range will replace the existing Continental brand row crop tyres that Mitas has been producing under licence since 2004.
Trelleborg has acquired an operation in Xingtai, Hebei Province, eastern China, in a move designed to facilitate the group’s expansion in the Chinese market for specialty, primarily agricultural tyres.
Trelleborg has acquired an existing facility from a Chinese company, part of the US Group Maine Industrial Tire LLC, and will also transfer approximately 180 employees. The acquisition and investments total approximately 100 million Swedish krona (£9.641 million; 11.45 million euros; US$15.54 million) over a three-year period. Production under the Trelleborg name is expected to commence during the second quarter of 2011.
Titan Tire, the US subsidiary of Titan International, has announced that it will increase its aftermarket prices for its Titan and Goodyear branded farm and construction tyres from 1 April. On the back of raw materials, energy and transportation costs tyre prices will increase by up to 8 per cent, though Titan also stated that “certain tyres’ prices may rise in excess of 8 per cent due to realignment and positioning of the product.” The rise will affect tyres shipped on or after the date of the increase.
Denmark’s Starco has announced the formation of a joint venture with Buco S.A., a family-owned company located in Buenos Aires, Argentina. Buco specialises in the development of rubber parts for agricultural machinery, and under the joint venture’s terms the Starco Group receives exclusive European distribution rights for the entire Buco product range – including a comprehensive range of semi-pneumatic tyres and wheels, corrugated hoses and telescopic tubes for seed drills. Starco Europe group marketing manager Brian Lorentzen states that with the joint venture both companies will “benefit from their combined product expertise and market knowledge, all of which supports a strategy of expanding further into the agricultural segment in Europe.”
Michelin has announced fresh price rises for European markets – part of its “firm pricing policy” in the face of rising raw material costs. As of March 1, motorcycle and scooter tyres will increase by up to 7.5 per cent, while prices for earthmover tyres will go up by up to 7.5 per cent on this date in most European markets. Between March 1 and April 1 price rises for new and retreaded truck tyres averaging seven per cent will be “gradually implemented” in European markets (excluding Russia), while agricultural tyres will receive the same gradual approach to price increases in many European markets between April 1 and May 1; this time prices will go up by an average of four per cent. Last but not least, the passenger car and small truck tyre segment will see increases averaging five per cent for summer and winter products gradually implemented between April 1 and June 1, 2011.
January's Tyres & Accessories contains features on the growing – excuse the pun – agricultural market and the world of two-wheel tyres. Subscribers can read the whole magazine in e-paper format by clicking more.
Mitas Tires, formerly CGS Tires US, reports the signing of a contract covering US$10 million worth of curing presses for its factory in Charles City, Iowa, which is currently under construction. The presses will be delivered and installed in August and September this year and the production of radial agricultural tyres will begin in 2012. In its first year of operation the plant will employ an estimated 159 workers and the company plans to employ 262 people in the US by 2016.
Alongside its decision to build a tyre plant in Charles City, Iowa, CGS Tires US Inc., the US subsidiary of Czech-based CGS Tyres, has changed its corporate name to Mitas Tires North America Inc, reports Tire Review. When the new plant is ready, the renamed company will relocate its US headquarters from Charlotte, North Carolina, to Charles City, Iowa.
CGS Tyres has announced plans to expand in the French markets after Copadex agreed to cede exclusivity in distributing CGS-produced Continental agricultural tyres in France as of 15 January 2011. CGS Tyres now sells all its brands in France, namely Mitas, Cultor and Continental (produced under licence). This consolidation was preceded by an announcement made in September about CGS Tyres acquiring distribution rights for Mitas tyres from L’Européenne de pneumatiques. Copadex will continue to sell Continental tyres.
Michelin has announced a new bespoke tyre specification service for farm vehicles, which will launch tomorrow at Lamma 2011. The service will run free of charge at all of the trade shows the manufacturer will attend this year, which will include the Irish Machinery Show, Grasslands & Muck, Cereals, Royal Welsh Show and Royal Highland Show. Michelin technical specialists will carry out a detailed technical appraisal, taking into account the precise machine model, individual tyre sizes, operating weights, desired applications and surface type. This information will then be used to determine the most suitable Michelin or Kleber fitments, together with recommended operating pressures.
India’s Balkrishna Tyre (BKT) is setting some ambitious targets for its continued growth. In 2009 BKT held a 3 per cent market share in the off-highway tyres segment (comprising Agricultural, Industrial, Construction, Earth Moving Equipment, ATV and Lawn & Garden), with an expected share for the end of 2010 reaching 4.5 per cent, according to BKT. By 2015, the company hopes to reach a 10 per cent share. BKT has grown its turnover from $82 million in 2004, to $220 million in 2007 and $310 million at the end of 2009. The production value for the end of 2010 is estimated to be $450 million.
Kings Road Tyres claims to be at the forefront of agricultural tyre distribution in the UK, and as an official wholesaler for leading agricultural manufacturers such as Michelin, Firestone, Trelleborg and Goodyear, as well as the exclusive UK wholesale distributor for both Taurus and Jetire brands, the company is already able to offer an extensive range of agricultural tyres. This product line-up has been further extended for 2011, with the addition of the premium Kleber agricultural tyre range.
Hertfordshire’s Soopa Toobs says it has continued to develop and expand its range of quality inner tubes to suit the increasing variety of radial and low-profile agricultural and implement tyres on the market, particularly with many farmers, estate managers and groundsmen using utility vehicles and ATVs to get around, increasing vehicle inventory. Company representative Martin Mansfield says demands continue to change while the increased longevity of machinery used means that there is an opportunity for suppliers able to provide a wide range of sizes and applications.
With more than 70 per cent of CGS Tyres’ revenues coming from its agricultural tyre range – comprising Mitas, Cultor and Continental under licence – the Czech tyre division of CGS Holding Group (Czech Rubber Company) boasts an extensive international sales and distribution network operating in 13 countries, including the United States and Mexico. The manufacturer has an annual turnover of more than $430 million cementing a place among the top three European producers of agricultural and construction equipment tyres. With its current operations based in Europe, 90 per cent of CGS Tyres’ sales are on the European market. The company’s development strategy states that the company will focus on increasing its global presence, which has begun with the establishment of a US base in Iowa.
The UK’s leading farm machinery and equipment show Lamma 2011 will be taking place at the Newark and Nottinghamshire Showground from Wednesday and Michelin will be exhibiting both its synonymous brand and its Kleber brand agricultural tyres at Stand B96, Avenue U. Michelin says its investment will enable the company to display the largest line-up of agricultural tyres in a four year history of attending the show.
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