Vipal and Fate Sign US$200 million Tyre Factory Memorandum of Understanding
Brazilian company Vipal, best known for its tyre retreading and repair materials, and Argentine tyremaker Fate have signed a memorandum of understanding with the Rio Grande do Sul State of Southern Brazil to set up a new tyre factory. The first bi-national industrial collaboration in the state, the Vipal/Fate project sees the companies invest around US$200 million in building a “farm equipment” and “aftermarket car parts” tyre plant. There has been no official confirmation of what brand the new tyres will be produced under, but Tyres & Accessories understands that this means production will focus on passenger car and van tyres.