Tribatyre is a Dutch-based organisation specialising in the import and export and wholesaling of tyres and wheels for the agricultural, industrial, forestry and other “slow traffic” markets worldwide. The combination of a large stock, 10000 m² warehousing and an efficient organisation enables delivery within Benelux and most of Germany within 24 hours. Delivery time elsewhere in Europe is usually within 48 hours.
CGS Tyres UK Ltd (formerly Mitas UK Ltd) was established in 2004 with the main objective of meeting its UK customer’s needs and requirements for the replacement and original equipment markets. CGS Tyres are the sole importers of Mitas, Continental, Semperit and Barum Agro/Industrial and off-road tyres from the Czech Republic. CGS Tyres operate from Kings Lynn, Norfolk and carries a full range of products including: agricultural (radial and cross ply), earthmover, forklift, motorcycle (road, speedway, motocross and kart), multipurpose and implement tyres.
Martin Sedlacek, managing director of Czech Republic tyre and wheel wholesaling company, Mands International s.r.o., began his career in the tyre industry in 1984 on the shop floor at Barum. Over the next years, with grim determination and a burning ambition to succeed, he improved his position and eventually entered into research and development. After the post communism elections Sedlacek was appointed assistant production manager and sent to study in the USA. Upon his return he was the assigned the role of commercial director with responsibility for all tyres sales in domestic, as well as traditional and new global export markets. In 1996 Sedlacek left Barum to form his own company, Mands International, but not before he had negotiated an arrangement with Barum whereby he could buy tyres from them to sell to new customers in Eastern Europe.
This year marks the 20th anniversary of the foundation of Summit Wheels & Tyres. The company was set up by Peter Summers and specialised in tyres and wheels for the industrial sector, notably fork lift trucks and skid steer; both replacement and OE.
Summit swiftly established itself as a major player in this specialised niche and developed a reputation for being able to supply unusual or hard-to-get products and to deliver these quickly and efficiently, using its own fleet of vehicles.
At the end of 2005 CGS Tyres launched its new SuperVolumeTyre (SVT) – an innovation designed to serve demanding machinery, according to the company. But it didn’t stop there. At the same time CGS launched the Semperit agricultural brand, effectively re-branding its Uniroyal line, while also releasing its 2006/2007 databook.
CGS also introduced its new Semperit agricultural tyre brand in November, during the Agritechnica exhibition in Hanover. The move amounts to the re-branding of its Uniroyal products under the Semperit moniker. According to CGS, this brand is characterised in particular by an excellent price/performance ratio.
Unlike the Continental brand, Semperit will be marketed exclusively through selected distributors in Western Europe. For farmers and contractors in the British Isles this means RH Claydon in Great Britain and Phillip White Tyres and Donnegal Tyres in Northern Ireland and the Irish Republic. Accompanying the launch, CGS has created modern new advertising concepts, which are said to allude to the Semperit passenger car range.
CGS will offer Semperit cross-ply and radial tyres. By offering a “large dimension range,” the company says the brand represents an alternative to other competitors in the quality segment. The Cultor-S (standard radial tyres) and Cultor-70 (70 per cent radial wide base tyres) were also presented at Agritechnica.
Speaking with CGS’ UK commercial managing director, Andrew Mabin, reveals that the company is in the process of negotiating OE fitments with a number of well-known machinery manufacturers, which could be finalised in the early part of 2006.
As far as the GB distributor, RH Claydon is concerned the introduction of the Semperit brand is good news. “Semperit is a good name, its an exciting brand to bring back into the market,” commented RH Claydon’s Dick Anderson.
When asked how he thought customers would respond to the brand name change, he added: “We had excellent sales with Uniroyal and we expect the same with the Semperit.” Tyres & Accessories learnt that there may be one or two minor alterations to the product range, but generally the transition is expected to be smooth with most of the changes taking place with cross-ply fitments. According to Andrew Mabin six Semperit sizes are already available with another scheduled for a January 2006 release.
For its part RH Claydon intends to promote the brand through the production of new Semperit brochure and show exposure, starting with January’s LAMMA show in Newark.
In order to explain the reasoning behind CGS’ decision to re-brand its Uniroyal products, the recent history of the company has to be examined. CGS Tyres develops, produces and markets its own brand Mitas agricultural tyres, as well as the licensed Continental, Barum, Semperit and Euzkadi brands. The company licences these brands on a “long term basis”, as it did with Uniroyal until recently.
When CGS bought Continental AG’s agricultural division in November 2004, the licensed brands came with it. However, now the time has come for the company to launch the Semperit brand. CGS says it will offer “excellent price/performance ratio” products under the Semperit name.
The broader CGS Tyres business unit makes a wide range of products – from the lawnmower to combine harvester tyres. CGS Tyres is active in 11 international locations and contributes to approximately 40 per cent of the total turnover of the larger CGS-Group. These sales are said to make CGS Tyres the second-largest manufacturer of agricultural tyres in Europe, Behind Michelin.
CGS agricultural products are manufactured at its Czech factories in Otrokovice, Zlin and Prague. The Otrokovice plant specialises in the production of radial drive wheel tyres. Radial tyre production there represents 80 per cent of total output. With the addition of two further production plants, CGS Tyres expects to be able to expand capacity to approximately 500,000 units in the coming years.
At the end of 2005 CGS Tyres launched its new SuperVolumeTyre (SVT) – an innovation designed to serve demanding machinery, according to the company. But it didn’t stop there. At the same time CGS launched the Semperit agricultural brand, effectively re-branding its Uniroyal line, while also releasing its 2006/2007 databook.
Czech rubber company Ceska Gumarenska Spolecnost (CGS) has bought Rubena Hradec Kralove, increasing its stake from 99.95 per cent, Interfax reported. The CGS group also includes rubber and tyre producers Mitas and Buzuluk
The small Czech rubber group Ceská Gumárenaská Spolecnost (CGS) took over Continental’s agricultural business unit, Agrotyres, in November. As part of Continental the division demanded more attention to become truly successful, and CGS claims that it is now satisfying that. Of course, the moment the Czech company gained full responsibility of the business and its profit and loss statement, it was always going to receive its full attention. The newly acquired factory at Otrokovice is said to have transformed the business. Along with this and its new business ethic CGS is now in a position to focus on its core business.
Under Continental the unit was worth 100 million euros, yet its costs were so high that they ate into its profit and the agricultural business was not profitable until 2001; the year Thorsten Bublitz, CGS’ managing director of marketing and sales, believes the business truly “came into its own.” Under CGS the goal was to reach a double-digit profit by the end of 2004 and during an interview with Mr Bublitz in November he said: “It looks like we’ll make it.” In 2003 CGS’ turnover was 223 million euros, now, following the acquisition it is 320 million euros. The entire tyre sector turns over somewhere in the region of 230 million euros and tyres account for around 72 per cent of the company’s overall business. When it comes to the tyres, 60 per cent are agricultural products which rake in a turnover of around 130 million euros. The remainder of the company’s tyre sector is largely made up of industrial tyres.
The Czech company signed a license agreement with Continental giving it the right to use the Continental, Barum, Semperit and Euzkadi (sold only in Mexico) brand names. As far as its commitment to the Continental brands goes, it has signed a contract for the next 10 years, with a possible five year extension if it so wishes. The Conti and Barum brands are of the most importance to the company, followed closely by Mitas. The Barum brand is dominating its sales, and claims 80 per cent of the eastern European market according to Mr Bublitz. At present it still produces under the Uniroyal brand that belongs to Michelin and is licensed to Conti, but in CGS’ words the brand has a “short life.” The brands have been seen as lower quality in the past and CGS is tackling this quality issue by assuring the standard of the products in the market. The company wants the Conti brand to equal quality and will try to achieve this by stabilising its position in the market. By striving to improve brand image, it is attempting to gain more influence in the market.
With the amount of brands on the market increasing and the amount of shelf space decreasing, many retailers are concentrating on the premium brands and the higher margins that go with them. Because of this budget brands are being pushed off the shelves. Does CGS believe its budget brands will survive a reorganisation in the market? Mr Bublitz thinks so, as far as the tyres’ quality goes, he claims that the customer is getting “more than it pays for,” and he suggests that the decrease in customer claims against the tyres speaks for the improvement in quality.
The Royal Smithfield Show has always been the place to be seen for those involved in agricultural tyres. Renowned as one of Europe’s largest and most comprehensive agri-business events, this year’s exhibition will span 60,000 square metres of indoor space and is expecting up to 50,000 visitors from around the world.
Around 20 companies, including ATS Euromaster, Bridgestone, R H Claydon, Goodyear Dunlop, Michelin, Mitas UK, Solideal, Tyremart and Wheel Solutions, will represent the agricultural tyre and wheel sector with a range of new and existing products. Tyres & Accessories will report the latest information from the agri-world and in the light of ongoing UK trade show debates will ask whether this is one tradition the UK industry can really afford.
In the future Mitas US will be known as CGS (Ceska Gumarenska Spolecnost) Tires US Inc, said Mitas president Dennis Vavrik.
Tyres from Czech manufacturer Mitas will be sold directly on to the Irish market from the beginning of November. The tyres will be sold through subsidiary company Mitas UK Ltd., which will be trading on the Irish market as Mitas Ireland. As well as agricultural and OTR tyres, Mitas Ireland will be selling earthmover, industrial and motorcycle tyres. The organisation will operate from a warehouse in County Kildare, run by sales manager Dave Deering.
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