ContiTech acquires WCCO Belting, increasing presence in agriculture

FAIRLAWN, Ohio—Continental's ContiTech division, specifically its conveying solutions segment, has finalized the acquisition of WCCO Belting Inc., a 68-year-old company reputed for its safety and innovation in the agricultural, aggregate and construction belting space.

Terms of the transaction, finalized July 5, were not released.

"We perfectly fit to Continental as we share the same passion for our industries," said WCCO President and CEO Tom Shorma. "Everything we do is to better support our current and prospective customers' needs based on our longstanding experience and with our team's dedication contributing to the process of creating custom rubber products that impact businesses across the world.

"We are very much looking forward to our future common path."

About 300 employees at WCCO, headquartered in Wahpeton, N.D., will join ContiTech as the two companies look to leverage each other's reach and product development expertise.

As the world's population grows (expected to reach 5 billion people by 2030), so grows the food market and agriculture industry. Experts predict rising living standards, increasing protein demand and "climate-change-induced crop pressures." And dietary habits are as diverse as they are changing, as transparency and sustainability gain traction across the world.

Such challenges are what ContiTech said it is addressing with this acquisition as the company looks toward "Farm 2030," a smart farming mission driven by motorization, digitalization and automation.

Continental calls intelligent agriculture "the nutrient for the field of the future."

"This strategic acquisition is a threefold perfect fit: portfolio, sales market and people," said Philip Nelles, member of Continental's Executive Board and head of the ContiTech Group Sector. "Moreover, we continue our transformation toward a holistic solutions provider in one of the growing industries, namely the off-highway industry."

WCCO Belting Inc. manufactures and distributes farm machinery applications such as draper belts, baler belts, pickup belts, tube conveyor belts and merger belts, along with industrial belt applications for material and package handling, recycling, forestry and aggregates.

It reaches more than 20 countries with its products, and ContiTech said it expects to widen the global net for WCCO moving forward. About three-quarters of WCCO's business is in the agricultural space.

"Combining both product portfolios (will) generate a full multi-tier offering that enables better support to manufacturers, distributors, dealers and farmers," ContiTech said.

WCCO in the past year has secured awards for safety from the North Dakota Safety Council; and for a diverse and "transformational" workplace culture from the Manufacturing Leadership Council, a division of the National Association of Manufacturers.

"We intend to leverage and grow our manufacturing capability to elevate Continental's opportunity in this area and to offer complete technical solutions to manufacturers and distributors with the goal to improve profitability and speed to market with new innovations and products," said Jim Hill, head of ContiTech North America.

"We are all delighted to welcome you, the experienced and dedicated WCCO employees, to our Continental team. I am convinced that we will learn from each other and grow together to best serve our customers' needs. We both, Continental and WCCO, are striving for excellence and focus on a customer-centric approach which unites us," Hill said.

Continental generated sales of $34.4 billion in 2021 and currently employs more than 190,000 people in 58 countries. The company celebrated its 150th anniversary in 2021. It ranks No. 4 in the inaugural Rubber News Top Hose Manufacturers Ranking.

For more on the acquisition, see the July 25 issue of Rubber News.